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VLTO:NYSEVeralto Corp Analysis

Data as of 2026-05-28 - not real-time

$83.55

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Veralto Corporation (VLTO) is trading at $83.55, comfortably below its 20‑day SMA of 86.5 and well under the 50‑day SMA of 87.9, confirming a bearish price bias. The RSI of 35 and a bearish MACD histogram suggest the stock is oversold and may be poised for a short‑term corrective bounce toward its immediate support at $83.30. Fundamentally, the company posts a solid 6.8% YoY revenue growth, a 59.9% gross margin and a 23.8% operating margin, while its trailing PE of 21.5 is well beneath the industry average of 30.1, indicating relative value attractiveness. However, the DCF‑derived fair value of $49.08 is far below the current market price, flagging a potential overvaluation from a discounted‑cash‑flow perspective. The dividend yield of 0.62% is modest but the payout ratio of 12% is comfortably sustainable, reinforcing cash‑flow stability. Together, technical weakness, strong margins, and a low beta (0.54) paint a picture of a fundamentally sound business that is temporarily under pressure from market sentiment, making it a candidate for a value‑oriented entry point.

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 6/10

Key Factors

  • Oversold RSI indicating near‑term upside potential
  • Support level at $83.30 offering a price floor
  • Bearish MACD but low beta reducing market‑wide volatility exposure

Medium Term

1–3 years
Neutral
Model confidence: 5/10

Key Factors

  • Stable operating margins and consistent cash flow generation
  • Industry‑relative PE advantage sustaining valuation
  • Moderate volatility (21.9% 30‑day) balanced by low beta

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Fundamental growth drivers (6.8% revenue YoY, strong gross margin)
  • Undervalued relative to DCF fair value and industry PE multiples
  • Sustainable dividend policy with low payout ratio

Key Metrics & Analysis

Financial Health

Revenue Growth6.80%
Profit Margin17.32%
P/E Ratio21.5
ROE36.46%
ROA11.32%
Debt/Equity95.54
P/B Ratio6.8
Op. Cash Flow$1.1B
Free Cash Flow$768.2M
Industry P/E30.1

Technical Analysis

TrendBearish
RSI35.6
Support$83.30
Resistance$90.79
MA 20$86.50
MA 50$87.91
MA 200$97.65
MACDBearish
VolumeStable
Fear & Greed Index92.91

Valuation

Fair Value$49.08
Target Price$108.71
Upside/Downside30.11%
GradeFair
TypeBlend
Dividend Yield0.62%

Risk Assessment

Beta0.54
Volatility21.94%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.