VeraltoMIL:1VLTO +7.09%56 ROE % is 33.47% as of Mar. 2026, which is 8% below its 10-year median of 36.34. GuruFocus rates MIL:1VLTO with a GF Score™ of 56/100 and a GF Value™ of €94.56 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 3,009 Industrial Products companies, Veralto ranks better than 97.08% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Veralto's annualized net income for the quarter that ended in Mar. 2026 was €879 Mil. Veralto's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €2,625 Mil. Therefore, Veralto's annualized ROE % for the quarter that ended in Mar. 2026 was 33.47%.
The historical rank and industry rank for Veralto's ROE % or its related term are showing as below:
MIL:1VLTO'
s ROE % Range Over the Past 10 Years
Min: 26.27 Med: 36.34 Max: 48.7
Current: 34.83
During the past 6 years, Veralto's highest ROE % was 48.70%. The lowest was 26.27%. And the median was 36.34%.
MIL:1VLTO's ROE % is ranked better than 97.08% of 3009
companies
in the Industrial Products industry
Industry Median: 5.91
vs MIL:1VLTO: 34.83
Veralto (MIL:1VLTO) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Veralto ROE % Related Terms
Veralto ROE % Historical Data
* Premium members only.
The historical data trend for Veralto's ROE % can be seen below:
* 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 Pollution & Treatment Controls subindustry, Veralto's ROE %, along with its competitors' market caps and ROE % 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.
Veralto ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Veralto's ROE % distribution charts can be found below:
* The bar in red indicates where Veralto's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Veralto (MIL:1VLTO) has a ROE % of 33.47% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Veralto and its competitors. This is near median its historical median of 36.34. Over the past decade, Veralto's ROE % has ranged from 26.27 to 48.70. According to the industry distribution chart, Veralto ranks #88 out of 3009 companies in the Industrial Products industry, placing it in the top 2.9%.
Is Veralto's ROE % too high?
Veralto's current ROE % of 33.47% is near median its 10-year median of 36.34. Over the past 10 years, this metric has ranged from a low of 26.27 to a high of 48.70. The Industrial Products industry median ROE % is 5.91. Veralto's value of 33.47% is 466.3% above this industry median. Based on the distribution chart, Veralto ranks #88 out of 3009 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Veralto has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Veralto's ROE % compare to ZWS and CECO?
According to the Industrial Products industry distribution chart, Veralto ranks #88 out of 3009 companies for ROE %. This places Veralto in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Veralto's value of 33.47% is 466.3% above this benchmark. Historically, Veralto's own ROE % has ranged from 26.27 to 48.70 over the past decade. While the company's 10-year median is 36.34 vs. the industry median of 5.91, Veralto has consistently been above 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 ROE % for an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,009 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Veralto's current ROE % of 33.47% is 466.3% above 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Veralto and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Veralto's current ROE % is 33.47%, which is near median its own 10-year median of 36.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Veralto stock overvalued right now?
Based on GuruFocus' analysis, Veralto (MIL:1VLTO) is currently considered Modestly Undervalued. The stock's GF Value™ is €94.56, compared to a current price of €77.90 — trading 17.6% below its estimated fair value. The current ROE % is 33.47%, which is near median its 10-year median of 36.34 and 466.3% above the Industrial Products industry median of 5.91. Veralto's overall GF Score™ is 56/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Veralto (MIL:1VLTO), the current ROE % is 33.47% as of Mar. 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 Veralto (MIL:1VLTO) Overvalued in 2026?
Based on GuruFocus' analysis, Veralto stock appears to be undervalued.
The current stock price of €77.90 is trading 17.6% below its estimated GF Value™ of €94.56.
GuruFocus considers Veralto to be Modestly Undervalued.
Key valuation signals for MIL:1VLTO:
ROE %: 33.47% (near median its 10-year median of 36.34)
GF Value™: €94.56 vs. price of €77.90 (17.6% below fair value)
Industry Position: 466.3% above the Industrial Products median (#88 of 3009)
No single metric tells the full story. See the MIL:1VLTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Veralto is a diversified industrial firm organized into two segments. The water quality segment offers water analytics and water treatment solutions, while the product quality and innovation segment offers coding, packaging, and color solutions for consumer packaged goods and pharmaceuticals. Headquartered in Waltham, Massachusetts, the company has around 17,000 employees. Veralto generated approximately $5.5 billion in revenue in 2025.
56GF Score
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