VLTO VLTO

Name: VLTO Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored April 7, 2026

Price at analysis: $88.58

Crucible Score

63.2

B-

Quality × Value Composite

KQI — Quality

70.7

Fundamental Quality Index

KVI — Value

54.1

C-

Valuation Attractiveness Index

Crucible Verdict — VLTO

VLTO earns a B- Crucible Score of 63.2, driven by solid financial quality (86) and strong earnings execution (94% beat rate) but held back by weak value metrics (KVI 54.1) and limited diversification (50). The stock trades at $89 versus a $98 fair value, creating modest upside despite insider selling pressure. VLTO's operational excellence needs to translate into better shareholder returns.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

85.7

Growth Profile

63.9

Moat Durability

69.8

Management Effectiveness

66.8

Diversification & Resilience⚠

50.0

Market Position

72.0

Weakest dimension: Diversification & Resilience (50.0)

◆ KVI Value Dimensions

DCF Margin of Safety

63.0

FCF Yield & Cash Returns

45.7

Relative Valuation

69.5

Growth-Adjusted Value

9.1

Historical Valuation

85.5

Macro Context

65.3

◆ DCF Valuation Scenarios

Bear Case

$68.42

Base Case

$97.53

Bull Case

$138.71

Price at Analysis

$88.58

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$68.42	4.0%	21.5%	11.3%
🟢 Base	$97.53	6.0%	23.5%	10.3%
🟢 Bull	$138.71	8.0%	25.5%	9.5%

Key Assumptions: Revenue grew at roughly 4-5% CAGR historically with operating margins stable around 22-23%; base case assumes modest acceleration to 6% revenue CAGR with slight margin expansion to 23.5% as Veralto leverages its water quality and product quality platforms post-spin. WACC calculated using CAPM with 5.5% ERP and 1.15 beta, yielding ~10.7% base cost of equity, blended with after-tax cost of debt (~4.5%) at ~17% debt weighting. Bear case reflects macro slowdown and margin pressure while bull case assumes stronger organic growth and operational leverage.

◆ Financial Snapshot

Profitability

Gross Margin59.9%

Operating Margin23.2%

Net Margin17.1%

ROIC16.4%

ROE30.8%

Balance Sheet

Balance SheetCR: 1.67

Cash ConversionFCF/EPS: 1.08x

Capital IntensityCapex/Rev: 1.1%

Altman Z-Score4.34 (Safe)

Piotroski F-Score5/9 (Mixed)

Growth

Revenue CAGR4.0% CAGR

Earnings CAGR2.2% CAGR

Growth ConsistencyCV: 0.40

Segment Breadth2/2 growing (100%)

Quarterly TrendRev↘+4%, Margin↑

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Leadership & Governance

CEO Ownership< 1%

Compensation77% performance-based

Insider ActivitySelling

Capital AllocationROIC 16.4% vs WACC 2.8%

Earnings Beat Rate94% (18/20)

◆ Related Companies in Our Universe

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ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted April 7, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.