VLTO Value Scorecard - Veralto

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

37/60

moderate value score

Earnings & returns

EPS Trend

3/5

Diluted EPS: $3.43 (2022), $3.40 (2023), $3.34 (2024), $3.76 (2025). It ended above 2022 but did not rise in 2 of 3 years; the framework scores that as 3.

ROE Trend

5/5

ROE (net income / common equity): 26.1% (2022), 60.7% (2023), 40.9% (2024), 30.3% (2025). Median 35.6%, lowest 26.1%; the framework scores a median above 20% as 5.

ROIC

5/5

ROIC of 22.7%: operating income of $1.28B divided by $5.64B of capital (total assets $7.69B minus current liabilities $2.06B), fiscal year to Dec 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores above 20% as 5.

Profit Margins

4/5

Net margin of 17.3%; the framework scores 10-20% as 4; gross margin 60.2%, operating margin 21.4%.

Balance sheet & cash

Debt-to-Equity

3/5

Debt-to-equity of 1.16; the framework scores 0.8-1.5 as 3 (total debt $3.59B, total cash $2.12B).

Free Cash Flow

4/5

Free cash flow (operating cash flow minus capital expenditure): $836.00M (2022), $909.00M (2023), $820.00M (2024), $1.01B (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $0 (2022), $178.00M (2023), $917.00M (2024), $1.74B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

1/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $3.97 x (8.5 + 2 x 5.2) x (4.4 / 4.5) = $73.37. Current price $101.04; price is 37.7% above the model value.

DCF Value

1/5

FCF/share = $3.311, stage 1 growth = 4.7% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $14.31, PV of terminal value = $38.06, DCF value = $52.37. Current price $101.04; price is 93.0% above the model value.

Margin of Safety

1/5

Graham value $73.37 (price is 37.7% above the model value); DCF value $52.37 (price is 93.0% above the model value).

Price-to-Book

1/5

P/B of 7.97; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 4 of 4 years (2022-2025); lowest 22.7%, highest 30.0%.

Gross margin, each year

Between 56.7% and 59.9% over 5 years (a range of 3.2 points).

Competition, in the company’s own words · 10-K filed Feb 20, 2026

Although Veralto’s businesses generally operate in highly competitive markets, Veralto’s competitive position cannot be determined accurately in the aggregate or by segment since none of its competitors offer all of the same product and service lines or serve all of the same markets as Veralto, or any of its segments, does. Because of the range of the products and services Veralto sells and the variety of markets it

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

4/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $1.13B paid out against $3.58B of free cash flow (pass); total debt $123.00M to $2.88B, up 2240.7%, 2.1x EBITDA (fail: up more than 10% and above 2x EBITDA); shares outstanding 0.25B to 0.25B, up 1.0% (pass). 3 of 4 tests passed; the framework scores that as 4.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $3.97, g = 5.2%, Y = 4.5
    IV = $73.37
    Current price $101.04 vs Graham value $73.37 — price is 37.7% above the model value.

  DCF:
    FCF/share = $3.311
    Stage 1 growth = 4.7% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $3.466 → PV $3.151
      Y2: $3.629 → PV $2.999
      Y3: $3.800 → PV $2.855
      Y4: $3.978 → PV $2.717
      Y5: $4.165 → PV $2.586
    Stage 1 PV sum = $14.31
    Terminal value at end of Y5 = $61.29
    PV of terminal value = $38.06
    DCF value = $52.37
    Current price $101.04 vs DCF value $52.37 — price is 93.0% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $101.04. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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