Watts Water TechnologiesWTS +5.65%89 PEG Ratio is 1.87 as of Jun. 26, 2026, which is 1% above its 10-year median of 1.85. GuruFocus rates WTS with a GF Score™ of 89/100 and a GF Value™ of $252.92 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,286 Industrial Products companies, Watts Water Technologies ranks better than 50.31% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Watts Water Technologies's PEG Ratio or its related term are showing as below:
WTS'
s PEG Ratio Range Over the Past 10 Years
Min: 1.19 Med: 1.85 Max: 6.33
Current: 1.87
During the past 13 years, Watts Water Technologies's highest PEG Ratio was 6.33. The lowest was 1.19. And the median was 1.85.
WTS's PEG Ratio is ranked better than 50.31% of 1286
companies
in the Industrial Products industry
Industry Median: 1.87
vs WTS: 1.87
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Watts Water Technologies (NYSE:WTS) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Watts Water Technologies PEG Ratio Related Terms
Watts Water Technologies PEG Ratio Historical Data
* 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.
For the Specialty Industrial Machinery subindustry, Watts Water Technologies's PEG Ratio, along with its competitors' market caps and PEG Ratio 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.
Watts Water Technologies PEG Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Watts Water Technologies's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Watts Water Technologies's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Watts Water Technologies (WTS) has a PEG Ratio of 1.87 as of Jun. 26, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Watts Water Technologies and its competitors. This is near median its historical median of 1.85. Over the past decade, Watts Water Technologies' PEG Ratio has ranged from 1.19 to 6.33. According to the industry distribution chart, Watts Water Technologies ranks #639 out of 1286 companies in the Industrial Products industry, placing it in the top 49.7%.
Is Watts Water Technologies' PEG Ratio too high?
Watts Water Technologies' current PEG Ratio of 1.87 is near median its 10-year median of 1.85. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 6.33. The Industrial Products industry median PEG Ratio is 1.87. Watts Water Technologies' value of 1.87 is 0% at this industry median. Based on the distribution chart, Watts Water Technologies ranks #639 out of 1286 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Watts Water Technologies has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watts Water Technologies' PEG Ratio compare to CR and GTLS?
According to the Industrial Products industry distribution chart, Watts Water Technologies ranks #639 out of 1286 companies for PEG Ratio. This puts Watts Water Technologies in the upper half of its industry. The industry median PEG Ratio is 1.87. Watts Water Technologies' value of 1.87 is 0% at this benchmark. Historically, Watts Water Technologies' own PEG Ratio has ranged from 1.19 to 6.33 over the past decade. While the company's 10-year median is 1.85 vs. the industry median of 1.87, Watts Water Technologies has consistently been at the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for an Industrial Products company?
The median PEG Ratio among Industrial Products companies is 1.87, based on 1,286 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watts Water Technologies's current PEG Ratio of 1.87 is 0% at the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Watts Water Technologies and its competitors. For the Industrial Products industry, the median PEG Ratio is 1.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Water Technologies's current PEG Ratio is 1.87, which is near median its own 10-year median of 1.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watts Water Technologies stock overvalued right now?
Based on GuruFocus' analysis, Watts Water Technologies (WTS) is currently considered Significantly Overvalued. The stock's GF Value™ is $252.92, compared to a current price of $375.09 — trading 48.3% above its estimated fair value. The current PEG Ratio is 1.87, which is near median its 10-year median of 1.85 and 0% at the Industrial Products industry median of 1.87. Watts Water Technologies' overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Watts Water Technologies (WTS), the current PEG Ratio is 1.87 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 Watts Water Technologies (WTS) Overvalued in 2026?
Based on GuruFocus' analysis, Watts Water Technologies stock appears to be overvalued.
The current stock price of $375.09 is trading 48.3% above its estimated GF Value™ of $252.92.
GuruFocus considers Watts Water Technologies to be Significantly Overvalued.
Key valuation signals for WTS:
PEG Ratio: 1.87 (near median its 10-year median of 1.85)
GF Value™: $252.92 vs. price of $375.09 (48.3% above fair value)
Industry Position: 0% at the Industrial Products median (#639 of 1286)
No single metric tells the full story. See the WTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watts Water Technologies Inc is a U.S.-based company that provides safety, energy efficiency, and water conservation products. Its product portfolio includes residential and commercial flow control products, which are sold for plumbing and hot water applications; HVAC and gas products, including commercial boilers, water heaters, heating solutions, etc.; drainage and water reuse products, including drainage products and engineered rainwater-harvesting solutions; and water quality products, including point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems. Its products are marketed through brands like Watts, Apex, Bradley, Nexa, and others. Geographically, the company derives its key revenue from the Americas, followed by Europe and the APMEA region.
89GF Score
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