What is Waters Corporation (WAT) DCF Fair Value and Intrinsic Value in 2026?

Waters Corporation (WAT) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Waters Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

Waters Corporation operates in the Healthcare sector (Diagnostics & Research) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Waters Corporation's financial health rating and Piotroski F-Score?

Waters Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Waters Corporation (WAT) for quarterly SEC filing thesis breaks?

LocalAlpha audits Waters Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksWAT

WAT

Waters CorporationHealthcare / Diagnostics & ResearchINTACT

Waters Corporation provides analytical workflow solutions in Asia, the Americas, and Europe. The company operates through two segments, Waters and TA. The company designs, manufactures, sells, and services liquid chromatography, as well as mass spectrometry (MS) technology systems and supports products, including chromatography columns, and other consumable products. It also designs, manufactures, sells, and services thermal analysis, rheometry, and calorimetry instruments for use in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals, and viscous liquids for various industrial, consumer goods, and healthcare products, as well as for life science research; and develops and supplies software-based products that interface with its instruments, as well as other manufacturers' instruments. In addition, the company offers MS technology, which is used in drug discovery and development comprising clinical trial testing, the analysis of proteins in disease processes, nutritional safety analysis, and environmental testing. Its products are used by clinical, pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic, and governmental customers working in research and development, quality assurance, and other laboratory applications. The company was founded in 1958 and is headquartered in Milford, Massachusetts.

Share Price

$408.34

52W: $282.77 - $426.22

DCF Fair Value

$0.00

0% Premium

Thesis Hub

P/E (TTM)

102.1x

ROIC

Operating Margin

9.4%

FCF Yield

-0.4%

Debt / Equity

0.36x

Piotroski Score

5/9

Altman Z-Score

2.95

Market Cap

$40.1B

Price vs. Intrinsic Value Corridor

Fair Value Range

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

Valuation Overlays:0 Revised Graham ($60.50) Graham Number ($117.99)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$408.34

DCF Fair Value

$0.00

-100% Premium

Starting Free Cash Flow ($M)$100M

$100M$-142M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$5,000M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$0.8B

PV of Terminal Value

$1.1B

Implied Enterprise Value

$1.9B

Implied Equity Value

$-3.1B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$105	$111	$117	$123	$129	$135	$141	$148	$154	$161
Present Value (PV)	$97	$93	$90	$87	$84	$81	$77	$74	$71	$68

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-246.1% Premium

$118.00

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $4.00BVPS: $154.70

Revised Graham Formula-574.9% Premium

$60.50

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings-0.3% Yield

$-1.38 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $-0.1BYield: -0.3%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

0.0% CAGR (Next 10 Yrs)

At the current price of $408.34, the market is assuming the business will compound Free Cash Flow at 0.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil WAT with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Waters Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 9.4% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Waters Corporation (WAT) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Waters Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Waters Corporation has an estimated DCF intrinsic fair value of $0.00 per share compared to its current market price of $408.34. This represents an estimated 0.0% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $117.99.