Waterco (ASX:WAT) Margin of Safety % (DCF FCF Based): 7.31% (As of Jun. 26, 2026)


ASX:WAT Waterco Ltd ASX:WAT
86 GF Score
Price A$5.20
GF Value A$7.63
Valuation Significantly Undervalued
! 4 Warning Signs
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What is Waterco Margin of Safety % (DCF FCF Based)?

Waterco ASX:WAT 86 Margin of Safety % (DCF FCF Based) is 7.31% as of Jun. 26, 2026. GuruFocus rates ASX:WAT with a GF Score™ of 86/100 and a GF Value™ of A$7.63 (Significantly Undervalued). The stock has 4 warning signs investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-26), Waterco's Predictability Rank is 2.5-Stars. Waterco's intrinsic value calculated from the Discounted FCF model is A$8.34 and current share price is A$5.20. Consequently,

Waterco's Margin of Safety % (DCF FCF Based) using Discounted FCF model is 7.31%.

ASX:WAT vs VLTO, ZWS, CECO: Margin of Safety % (DCF FCF Based) Comparison

For the Pollution & Treatment Controls subindustry, Waterco's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Waterco Margin of Safety % (DCF FCF Based) vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Waterco's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where Waterco's Margin of Safety % (DCF FCF Based) falls into.


ASX:WAT
86GF Score
Waterco Ltd ASX:WAT
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Waterco Margin of Safety % (DCF FCF Based) Calculation

Waterco's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(5.61-5.20)/5.61
=7.31 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of 7.31% mean?
Waterco (ASX:WAT) has a Margin of Safety % (DCF FCF Based) of 7.31% as of Jun. 26, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Waterco.
Is Waterco's Margin of Safety % (DCF FCF Based) too high?
Waterco's current Margin of Safety % (DCF FCF Based) is 7.31%. Overall, Waterco has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Waterco's Margin of Safety % (DCF FCF Based) compare to VLTO and ZWS?
Waterco's Margin of Safety % (DCF FCF Based) of 7.31% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for an Industrial Products company?
A good Margin of Safety % (DCF FCF Based) depends on the Industrial Products industry context. However, Margin of Safety % (DCF FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Waterco. Waterco's current Margin of Safety % (DCF FCF Based) is 7.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waterco stock overvalued right now?
Based on GuruFocus' analysis, Waterco (ASX:WAT) is currently considered Significantly Undervalued. The stock's GF Value™ is A$7.63, compared to a current price of A$5.20 — trading 31.8% below its estimated fair value. The current Margin of Safety % (DCF FCF Based) is 7.31%. Waterco's overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Waterco (ASX:WAT), the current Margin of Safety % (DCF FCF Based) is 7.31% as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Waterco (ASX:WAT) Overvalued in 2026?

Based on GuruFocus' analysis, Waterco stock appears to be undervalued. The current stock price of A$5.20 is trading 31.8% below its estimated GF Value™ of A$7.63. GuruFocus considers Waterco to be Significantly Undervalued.

Key valuation signals for ASX:WAT:

  • Margin of Safety % (DCF FCF Based): 7.31%
  • GF Value™: A$7.63 vs. price of A$5.20 (31.8% below fair value)
  • GF Score™: 86/100 with 4 warning signs

No single metric tells the full story. See the ASX:WAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Waterco Business Description

Other Exchanges 3W4:Germany
Address 36 South Street, Rydalmere, Sydney, NSW, AUS, 2116
Waterco Ltd designs, manufactures, and distributes filtration and sanitisation products for swimming pools, spas, aquaculture, and water purification sectors. The company serves residential, commercial, and industrial markets in various countries. Waterco operates manufacturing and R&D facilities in Australia, New Zealand, Malaysia, China, and other countries. It also franchises Swimart, a pool and spa retail network in Australia and New Zealand, and is the exclusive distributor of Zane Solar Pool Heating systems. Waterco's product range includes pool equipment, water treatment systems, chemicals, and solar heating solutions. The company generates revenue predominantly through the sales of pool and spa equipment, water treatment systems, and franchising operations.
86GF Score

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Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$5.20
Price
A$7.63
GF Value