Using the industry peer median P/E multiple (trailing + forward), Waters Corporation (WAT) has a fair value of $289.71 based on 9 comparable companies in the Medical - Diagnostics & Research industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Waters CorporationWAT | 18,099 | 28.2x | 21.1x |
| Thermo Fisher Scientific Inc.TMO | 182,666 | 27.7x | 20.0x |
| Danaher CorporationDHR | 133,264 | 37.4x | 22.4x |
| IDEXX Laboratories, Inc.IDXX | 46,141 | 44.2x | 39.7x |
| Agilent Technologies, Inc.A | 32,180 | 24.9x | 19.1x |
| IQVIA Holdings Inc.IQV | 28,849 | 21.7x | 13.4x |
| Mettler-Toledo International Inc.MTD | 25,872 | 30.2x | 27.4x |
| Labcorp Holdings Inc.LH | 22,295 | 25.7x | 15.1x |
| Quest Diagnostics IncorporatedDGX | 22,003 | 22.6x | 20.2x |
| Revvity, Inc.RVTY | 9,788 | 42.1x | 16.2x |
| Industry Median | 27.7x | 20.0x | |
| (*) Profit after tax | 643 | 859 | |
| Equity Value | 17,812 | 16,782 | |
| (/) Outstanding shares | 60 | 60 | |
| Fair Price | $298 | $281 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.