GRACO INC. (GGG): what the price assumes
In the published model solve dated 2026-Q2, anchored at $79.29, GRACO INC. (GGG) is priced for +17.3% growth. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-06-27.
Generated: 2026-08-30 · Source: https://boothcheck.com/report/GGG
Headline
| Field | Value |
|---|---|
| Ticker | GGG |
| Company | GRACO INC. |
| Current price | $79.29/sh |
| Composition | Contractor 48% / Industrial 45% / Expansion Markets 8% |
What The Price Assumes (Inversion)
The assumption today's price embeds, recovered by inverting the valuation.
| Field | Value |
|---|---|
| Inversion basis | whole-company |
| Operating margin (value-band context) | 22.6% |
| Operating margin today | 28.1% |
| Margin compression (value-band) | -5.5pp |
| Implied growth | 17.3% |
| Multiple paid | 19x operating income |
The operating-margin figure is value-band context at year 12: derived from the framework's value band, a separate calculation — not part of the priced-in solve.
Solve inputs: computed at a 9.5% cost of capital with 4% terminal growth over a 5-year stage.
How unusual the bet is: within-range (limited comparison data)
| Reference | Value |
|---|---|
| vs own history | +0.17σ |
| cohort percentile (of 225 peers) | 46 |
Valuation X-Ray
Asset, earnings-power and peer-multiple models all land far below the price; ONLY the growth-DCF reaches it. The bet is durable compounding the static frames structurally cannot price (a moat/durability premium).
How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.
| Family | Median price/FV | Models | Reads |
|---|---|---|---|
| Asset | 2.23x | 5 | expensive |
| Earnings | 1.85x | 5 | expensive |
| Relative | 1.63x | 2 | expensive |
| Growth | 1.03x | 3 | expensive |
Families that justify the price: Growth Families that call it expensive: Asset, Earnings, Relative
The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 9.2%); the inversion above states its own rate.
Per-Model Detail (n=15)
| Model | Family | FV | Price/FV | Applicable | Methodology |
|---|---|---|---|---|---|
| DCF Perpetual Growth | Growth | $77.41 | 1.02x | yes | FCF base $0.6B, growth 5% (input: historical growth), terminal g 4.0%, WACC 9.2%, 6yr projection |
| DCF Exit Multiple | Growth | $76.80 | 1.03x | yes | Exit EV/EBITDA: 16.6x / 18.6x / 20.6x (bear / base = today's held flat / bull), 6yr |
| Relative Valuation | Relative | — | — | no | P/E 18x (static sector reference · 2026-04), scenarios: 15.1x / 18.0x / 20.9x (bear / base = reference held flat / bull), EV/EBITDA 13.98x |
| Simple DDM | Growth | — | — | no | — |
| Two-Stage DDM | Growth | — | — | no | — |
| Simple Excess Return | Asset | $35.62 | 2.23x | yes | BV/sh $15.58, ROE (TTM) 21.1%, ke 9.3% |
| Two-Stage Excess Return | Asset | $53.44 | 1.48x | yes | 5yr excess ROE then converge to ke=9.3% |
| Discounted Future Market Cap | Growth | $59.68 | 1.33x | yes | Rev $2.3B, growth 5% (input: historical growth; tapered), Terminal P/S: 4.7x / 5.7x / 6.6x (bear / base = today's held flat / bull, cap 8x) |
| Peter Lynch Fair Value | Relative | $40.42 | 1.96x | yes | EPS $3.17, growth 13% (input: historical EPS growth), PEG=1.89 (Overvalued) |
| Margin Trajectory | Growth | — | — | no | — |
| Earnings Power Value | Earnings | $35.07 | 2.26x | yes | Normalized EBIT (5y avg op income, one-time charges added back) $0.60B × (1−20%) / WACC 9.2% → EPV (no growth) |
| Residual Income | Asset | $50.82 | 1.56x | yes | BV $15.58 + 5yr PV of (ROE (TTM) 21.1% − Kₑ 9.3%) × BV; BV grows 8.8%/yr |
| Graham Number | Asset | $33.33 | 2.38x | yes | √(22.5 × EPS $3.17 × BVPS $15.58) — Graham's conservative floor |
| EV/EBITDA Relative | Relative | — | — | no | EBITDA $0.66B × sector EV/EBITDA 12.0x |
| FCF Yield | Earnings | $45.01 | 1.76x | yes | FCF $629.5M / Kₑ 9.3% — zero-growth perpetuity |
| SBC-Adj FCF Yield | Earnings | $42.79 | 1.85x | yes | SBC-adj FCF $0.60B (FCF $0.63B − SBC $0.03B) capitalized at Kₑ |
| Ben Graham Formula | Earnings | $90.33 | 0.88x | yes | EPS $3.17 × (8.5 + 2×12.7%) × (4.4 / 5.3%) |
| ROIC-Justified P/B | Asset | $11.57 | 6.85x | yes | BV $15.58 × (ROIC 6.9% / WACC 9.2%) |
| P/Sales Sector | Relative | — | — | no | Revenue $2.27B × sector P/S 2.5x |
| PEG Fair Value | Relative | $60.62 | 1.31x | yes | EPS $3.17 × (PEG 1.5 × growth 12.7% (input: historical EPS growth)) → PE 19.1x |
| Earnings Yield | Earnings | $34.27 | 2.31x | yes | EPS $3.17 / required return 9.3% (Rf 4.3% + ERP 5.0%) |
| Funds From Operations Multiple | Relative | — | — | no | — |
| Clinical Phase NPV | Growth | — | — | no | — |
| Merton | Asset | — | — | no | — |
| V5 Mechanical | — | — | — | no | — |
Economic-Unit Decomposition (Sum Of The Parts)
One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.
| Unit | Role | Valuation basis | Revenue | Reported profit | Value evidence | Status |
|---|---|---|---|---|---|---|
| Contractor | operating | enterprise | $1.1b | — | withheld | unresolved no unit value |
| Industrial | operating | enterprise | $996.8m | — | withheld | unresolved no unit value |
| Expansion Markets | operating | enterprise | $167.9m | — | withheld | unresolved no unit value |
No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.
Solvency
| Field | Value |
|---|---|
| Net cash | $477.8m |
| Net debt / NOPAT (after-tax) | -0.94x (net cash) |
| Net debt / operating income (pre-tax) | -0.75x (net cash) |
| Interest coverage | 199.1x |
| Share count CAGR (buyback) | -1.0% |
| Burning cash | no |
Bullet Takeaways
At $76.02 the market is pricing about 20 times operating income, implying operating growth of roughly 19% a year for five years. The rate is within what Graco has recently delivered; the stretch is in how long it must persist, not how fast.
The fundamentals are unusually clean: a 27.5% trailing operating margin, net cash on the balance sheet, interest covered hundreds of times over, and a long record of returning cash. Only the growth-DCF family reaches the price, which frames this as a quality-and-durability premium rather than a cheap stock.
The near-term reality is softer than the multiple assumes. Q1 2026 organic sales fell 6% with acquisitions and currency masking the decline, EPS slipped, and the semiconductor-heavy Expansion Markets segment lapped a prior surge. The bet is that the moat keeps compounding through a soft patch.
Bull Case
The market is pricing Graco as a durable compounder, and unlike most stocks where that framing is a stretch, here the fundamentals largely cooperate. The price implies operating growth of about 19% a year for five years, and the notable thing is that the rate is within what Graco has recently delivered. The market is not betting on the company suddenly becoming something it is not; it is betting that a proven performer keeps performing. What the fundamentals actually show is a business that earns a 27.5% trailing operating margin, sits on a net cash balance sheet, covers interest hundreds of times over, and has been quietly shrinking its share count. That is the profile of a high-quality industrial, and high-quality industrials are exactly the kind of business where a forward growth premium can be earned rather than imagined.
The segment structure supports the durability case. Graco reorganized into three reportable segments effective January 1, 2025, Contractor, Industrial, and Expansion Markets (FY2025 10-K, accession 0000042888-26-000081), spreading the business across professional paint contractors, factory fluid-handling, and higher-growth adjacencies. The Industrial segment alone is about 45% of sales and the filing notes its operating margin rate increased on the year, helped by acquired operations and favorable currency (accession 0000042888-26-000081). The company is explicit that its operating disciplines and continuous improvement "are leveraged to integrate and expand the capabilities of acquired businesses" (accession 0000042888-26-000081), which is the engine behind the total-growth-above-organic story: bolt-on acquisitions, run through Graco's margin machine.
The near-term order signal is the encouraging part beneath a soft revenue quarter. Even as Q1 2026 organic sales dipped, management cited a strong April backlog build and reported bookings up at least 20% in each region of the Expansion Markets segment. The semiconductor business inside that segment was lapping a 51% prior-year surge, so the organic decline there is a comparison artifact, not a demand collapse. Against the peer cohort of Watts Water, Curtiss-Wright, Pentair, Xylem, and Donaldson, Graco stands out for the combination of margin, balance-sheet strength, and a repeatable acquire-and-improve model. The price asks for durable compounding; the business has the structure and the discipline to deliver it.
Bear Case
The bear case starts with how management is funding growth, because the recent results expose a dependence on acquisitions that the headline numbers paper over. Q1 2026 total revenue rose 2%, but organic sales fell 6%; acquisitions added 5 points and currency another 3. In other words, the underlying business shrank, and the growth line was assembled from deals and exchange rates. That is a legitimate strategy for a disciplined acquirer, but it raises the bar on capital allocation: every point of reported growth that comes from buying revenue rather than generating it puts more weight on integration and on paying the right price. When organic demand softens and the company leans harder on M&A to keep the growth optics intact, a holder should ask whether the deals are creating value or just filling a gap.
The second problem is that the price assumes the compounding continues uninterrupted, and the latest quarter argues it is interrupting. Net earnings fell 5% to $119 million and adjusted EPS dropped 6% to $0.66. Gross margin contracted about 60 basis points as pricing actions failed to fully offset higher product costs, lower volume, acquired-operation dilution, and $7 million of incremental tariffs. The price embeds roughly 19% annual operating growth for five years; the company just printed declining organic sales and falling earnings. History says only about 38% of comparable performers sustain that pace for even five years, and a quarter of organic contraction is not the start most of that 38% had. If the soft patch lasts, the gap between a 19%-growth price and a shrinking-organic reality closes from the wrong direction.
The third issue is concentration and cyclicality inside the growth engine. The Expansion Markets segment, the part carrying the highest-growth narrative, is heavily exposed to semiconductors, which just lapped a 51% surge and went into organic decline. That is the nature of the segment: when it runs it flatters the whole company, and when it cools it drags. The bookings strength is real, but bookings can be deferred, and a 20%-plus order build has to convert into shipments to matter. The valuation lenses outside growth-DCF all agree the price is full, asset-based methods land in the $33 to $47 range and earnings-power methods near $33 to $45, well below the $76 (June 27, 2026) quote. The net cash balance sheet means this is not a distress story, but it does mean the entire premium rests on the durability of a moat during a stretch when the organic numbers are pointing the other way.
Valuation
The inversion is unusually benign for a name trading at a premium. At $76.02 the market is paying about 20 times company-wide operating income, which at a 9.7% cost of capital implies operating growth of roughly 19% a year for five years. The key context is that this rate is within what Graco has recently delivered, so the stretch is in the duration, how long the pace must persist, rather than in the rate itself. The priced-in assumption reads as within range, the most comfortable label in this set: about 38% of comparable performers have sustained that pace for five years, and Graco's own history puts it in the conversation.
The model X-ray shows the signature of a quality compounder: only the growth-DCF family reaches the price, while everything else says richly valued. The growth frames land right at the quote (DCF perpetual growth near $76, DCF exit multiple near $74, discounted future market cap near $57). The asset-based frames land lower (two-stage excess return near $47, residual income near $46, simple excess return near $33, ROIC-justified book near $10). Earnings-power frames sit near $33 to $45 (earnings-power value near $36, FCF yield near $45, Ben Graham formula near $67). Peer-relative methods land near $33 to $58. The pattern, static methods below the price and only forward growth reaching it, is precisely what a moat premium looks like.
The balance sheet removes the distress question entirely. Graco holds net cash of about $684 million against roughly $619 million of trailing operating income, with interest covered around 205 times. There is no leverage risk; the company can fund acquisitions and buybacks from internal cash. The recent quarter, organic sales down 6% and EPS down 6% but with bookings up over 20% by region and a strong April backlog, is genuinely mixed and material to the forward view. The reasonable conclusion is that Graco is an excellent business priced for the durability it has historically shown, with the near-term organic softness as the live test of whether that durability holds. You are paying a fair price for quality, not finding a bargain.
Catalysts
The Q1 2026 report on April 23 was the most recent catalyst and a mixed one. Revenue of $540 million rose 2%, but organic sales fell 6% (acquisitions added 5 points, currency 3). Net earnings of $119 million were down 5%, and adjusted EPS of $0.66 was down 6%. Gross margin fell about 60 basis points as pricing only partly offset higher costs, lower volume, acquired-operation dilution, and $7 million of incremental tariffs. Management maintained its full-year outlook for low-single-digit organic growth and mid-single-digit total growth including acquisitions, citing strong Q1 and April backlog. (Sources: The Motley Fool Q1 2026 transcript; Investing.com Q1 2026 slides; Kavout earnings analysis.)
The key forward signals are order conversion and the semiconductor cycle. Expansion Markets organic revenue fell 5%, driven by the semiconductor business lapping a prior 51% surge, but bookings rose at least 20% in each region, so the catalyst to watch is whether that booking strength converts into shipped revenue in the coming quarters. Analyst sentiment is cautious, with a largely Hold consensus and a price target near $99. Because the price assumes durable compounding, the next prints matter most for direction: a return to organic growth and conversion of the backlog would validate the premium, while continued organic contraction would pressure a stock that only the growth models can justify. (Sources: Investing.com; stockanalysis.com; The Motley Fool transcript.)
Peer Cohorts (Per Segment, With Filing Citations)
Contractor (reported)
- NDSN (NORDSON CORPORATION)
- FY2025 10-K: …purchasers named therein (incorporated herein by reference to Exhibit 4.1 to Registrant's Current Report on Form 8-K dated June 28, 2018) 4-d Indenture, dated September 13, 2023, by and between the Company and U.S. Bank Trust Company, National Association, as trustee (incorporated herein by reference to Exhibit 4.1…
- FY2025 10-K: …if they are immaterial in the context of the contract and combine these with other performance obligations. While payment terms and conditions vary by contract type, we have determined that our contracts generally do not include a significant financing component. We have elected to apply the practical expedient to…
- IEX (IDEX CORP)
- FY2025 10-K: …the customer. Some contracts include multiple performance obligations such as a product and related installation, extended warranty, engineering, software and/or maintenance services. For contracts that require complex design, manufacturing and installation activities, certain performance obligations may not be…
- FY2025 10-K: …adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes provisions for estimated losses on incomplete contracts in the…
- DOV (DOVER Corp)
- FY2025 10-K: …if it is expected, at contract inception, that the period between when the Company transfers a promised good or service to a customer, and when the customer pays for that good or service, will be one year or less. Thus, the Company may not consider an advance payment to be a significant financing component, if it is…
- FY2025 10-K: …where our companies provide a substantial number of products and services applicable to a broad range of end-use applications. Seasonality In general, while our businesses are not highly seasonal, we do tend to have stronger revenue generation in the second half of the year, which is driven by customer capital…
- ITW (ILLINOIS TOOL WORKS INC)
- FY2025 10-K: …and integrated service offerings. Test & Measurement and Electronics - This segment is a branded and innovative producer of test and measurement and electronic manufacturing and MRO solutions that improve efficiency and quality for customers in diverse end markets. Businesses in this segment produce equipment,…
- FY2025 10-K: …Company's competitors include many regional or specialized companies, as well as large U.S. and non-U.S. companies or divisions of large companies. Each of the Company's segments generally has several main competitors and numerous smaller ones in most of their end markets and geographic areas. In addition to numerous…
- PNR (Pentair plc)
- FY2025 10-K: …Statements of Operations and Comprehensive Income. Shipping and handling costs incurred by Pentair for the delivery of goods to customers are considered a cost to fulfill the contract and are included in Cost of goods sold in the accompanying Consolidated Statements of Operations and Comprehensive Income. Contract…
- FY2025 10-K: , respectively. For the majority of our revenue recognized over time, we use an input measure to determine progress towards completion. Under this method, sales and gross profit are recognized as work is performed generally based on the relationship between the actual costs incurred and the total estimated costs at…
- GTLS (CHART INDUSTRIES, INC.)
- FY2025 10-K: …(or alleged violations) of these regulations. Any violations may subject us to government scrutiny, investigation and civil and criminal penalties and may limit our ability to export our products. 16 As a provider of products to the U.S. government, we are subject to certain federal rules, regulations, audits and…
- FY2025 10-K: 1-11442)). * 10.5 Chart Industries, Inc. Cash Incentive Plan (incorporated by reference to Appendix A to the Registrant's definitive proxy statement filed with the SEC on April 8, 2014 (File No. 001-11442)). * E-3 10.6 Chart Industries, Inc. Cash Incentive Plan (incorporated by reference to Exhibit 10.2 to the…
Industrial (reported)
- NDSN (NORDSON CORPORATION)
- FY2025 10-K: …served as Executive Vice President, Automotive OEM Segment, with Illinois Tool Works Inc. (NYSE: ITW), a global manufacturer of a diversified range of industrial products and equipment, since 2015. Prior to that, Mr. Nagarajan served as Executive Vice President, Welding Segment, with Illinois Tool Works Inc. from…
- FY2025 10-K: …as disruptions in availability of raw materials, components, and sourced finished goods. We monitor and investigate alternative suppliers and materials based on numerous attributes including quality, service, financial stability, Nordson manufacturing location, and price. We currently source raw materials and…
- IEX (IDEX CORP)
- FY2025 10-K: …Company is exposed to fluctuations in commodity pricing and inflation, including the impact of tariffs, and attempts to control these impacts through increased prices to customers and various other programs with its suppliers. Suppliers The Company manufactures many of the parts and components used in its products.…
- FY2025 10-K: …greater stability to its operations, allows the Company to drive economies of scale, provides revenue streams that may help offset economic trends that are specific to individual economies and offers the Company an opportunity to access new markets for products. 8 Table of Contents The following table illustrates…
- DOV (DOVER Corp)
- FY2025 10-K: …and measurement period adjustments. SIQ's hardware and software products expand the Company's ability to deliver a comprehensive solution that brings actionable intelligence and remote hardware service to retailers and service companies within the Clean Energy & Fueling segment. In connection with this acquisition,…
- FY2025 10-K: …of traditional and clean fuels (including liquefied natural gas, hydrogen, and electric vehicle charging), cryogenic gases, and other hazardous substances along the supply chain, and safe and efficient operation of convenience retail, retail fueling and vehicle wash establishments. • Imaging & Identification segment…
- ITT (ITT INC.)
- FY2025 10-K: …end-users. IP's customers operate in global infrastructure and natural resource markets such as energy, chemical and petrochemical, pharmaceutical, general industrial, marine, mining, pulp and paper, food and beverage, power generation and biopharmaceutical. IP's marketplace-recognized brands include Goulds Pumps TM…
- FY2025 10-K: …financial statements upon adoption. NOTE 3 SEGMENT INFORMATION The Company's segments are reported on the same basis used by our chief operating decision maker (CODM) for evaluating performance and for allocating resources. The Company's CODM is the President and Chief Executive Officer. The CODM allocates resources…
- PH (PARKER-HANNIFIN CORPORATION)
- FY2025 10-K: …internal review and decision-making. Diversified Industrial Segment (dollars in millions) 2025 2024 Net sales North America businesses $ 8,134 $ 8,801 International businesses 5,531 5,657 Diversified Industrial Segment 13,665 14,458 Operating income North America businesses 1,891 1,963 International businesses 1,229…
- FY2025 10-K: We offer hundreds of thousands of individual part numbers, and no single product contributed more than one percent to our total net sales for the year ended June 30, 2025. Listed below are some of our principal products. Diversified Industrial Segment . Our Diversified Industrial Segment products consist of a broad…
- FELE (FRANKLIN ELECTRIC CO., INC.)
- FY2025 10-K: …or components based on an analysis of historical usage and management's evaluation of estimated future demand, market conditions, and alternative uses for possible excess or obsolete parts. Property, Plant, and Equipment --Property, plant, and equipment are stated at historical cost. The Company capitalizes certain…
- FY2025 10-K: …principal risks affecting the Company and its business. Additional risks and uncertainties, not presently known to the Company, could negatively impact the Company's results of operations or financial condition in the future. Risks Related to the Industry Reduced housing starts adversely affect demand for the…
- GRC (The Gorman-Rupp Company)
- FY2025 10-K: …(1) loss of key personnel; (2) intellectual property security; (3) growth through acquisitions; (4) the Company's indebtedness and how it may impact the Company's financial condition and the way it operates its business; (5) impairment in the value of intangible assets, including goodwill; (6) defined benefit pension…
- FY2025 10-K: …Lenexa, KS 142,000 Manufacturing Industrial, agriculture, construction Leased Partial Lubbock, TX 60,000 Manufacturing Industrial, agriculture, municipal, petroleum, OEM Owned Partial Mansfield, OH (2 properties) 970,000 Corporate HQ, Manufacturing, R&D Industrial, construction, municipal, petroleum, OEM Owned…
Expansion Markets (reported)
- IEX (IDEX CORP)
- FY2025 10-K: …Levels of capacity utilization and capital spending in certain markets and overall industrial activity are important factors that influence the demand for IDEX's products. 2025 Highlights (All comparisons are against 2024 unless otherwise noted) • Record reported Net sales of $3,457.5 million increased 6% overall and…
- FY2025 10-K: …conditions may amplify many of these risks. These risks are not the only risks that may affect the Company. Additional risks that the Company is not aware of or does not believe are material at the time of this filing may also become important factors that adversely affect the Company's business. Risks Related to the…
- DOV (DOVER Corp)
- FY2025 10-K: %, while organic revenue in Europe and Other Americas declined 0.9% and 4.3%, respectively. All other geographic markets grew 0.7% organically year over year. Bookings increased 6.0% over the prior year to $8.1 billion for the year ended December 31, 2025. The bookings increase was broad-based across the portfolio,…
- FY2025 10-K: …attractiveness and portfolio fit. Finally, we have consistently returned cash to shareholders by paying dividends, which have increased annually over each of the las t 70 years. We undertake opportunistic share repurchases as part of our capital allocation strategy. We employ a prudent financial policy to support our…
- CW (CURTISS-WRIGHT CORPORATION)
- FY2025 10-K: …- % 5 % Foreign currency 1 % 2 % Total 5 % 12 % Sales increased $44 million, or 5%, to $977 million, from the comparable prior year period. In the commercial aerospace market, sales increased $34 million primarily due to higher demand for sensors products and surface treatment services on various narrow-body and…
- FY2025 10-K: …and the development of next-generation advanced reactors. In the aerospace defense market, sales increased $12 million primarily due to higher sales of arresting systems equipment supporting various international customers. Operating income increased $32 million, or 16%, to $231 million, primarily due to favorable…
- DCI (DONALDSON COMPANY, INC.)
- FY2025 10-K: …and adhesive products. Purchased raw materials represent approximately 67% of the Company's cost of sales. On an ongoing basis, the Company enters into selective supply arrangements with certain of its suppliers that allow the Company to reduce volatility in its costs. The Company strives to recover or offset all…
- FY2025 10-K: …all of which are considered in calculating the lease liability and right-of-use asset when it is reasonably certain the Company will exercise an option. The Company's incremental borrowing rate on the commencement date is used to calculate the present value of future payments for most leases since the rate implicit…
- GTLS (CHART INDUSTRIES, INC.)
- FY2025 10-K: …outside of the United States. We must translate revenues, income and expenses, as well as assets and liabilities into U.S. dollars using exchange rates during or at the end of each period. Fluctuations in currency exchange rates have had and will continue to have an impact on our financial condition, operating…
- FY2025 10-K: …Borrowings outstanding under the senior secured revolving credit facility due April 2029 and an additional 100 basis points (1 percent) strengthening in the U.S. dollar in relation to the euro as of the beginning of 2025, during the year ended December 31, 2025, our additional unrealized foreign currency gain would…
- MWA (MUELLER WATER PRODUCTS, INC.)
- FY2025 10-K: …business, • Inability to obtain required regulatory approvals and/or required financing on favorable terms, • Potential loss of key employees, contractual relationships or customers of the acquired business, • Increased operating expenses related to the acquired businesses or technologies, • The failure of new…
- FY2025 10-K: …statements of operations at the time revenue is recognized. We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. As the expected benefit associated with these incremental costs is generally one year or less based on the nature of the product sold and…
Methodology Note
- Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
- Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
- Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
- Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
- Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.
Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.