REVVITY, INC (RVTY): what the price requires
At today's price, REVVITY, INC (RVTY) is priced for today's economics sustained for ~7.5 years. boothcheck doesn't publish a fair value or a price target; it shows what the price assumes, so you can judge whether that bar is too high.
Generated: 2026-07-14 · Exported: 2026-07-16 · Source: https://boothcheck.com/report/RVTY
Headline
| Field | Value |
|---|---|
| Ticker | RVTY |
| Company | REVVITY, INC |
| Current price | $110.83/sh |
| Composition | Life Sciences Solutions 42% / Software 8% / Immunodiagnostics 30% / Reproductive health 19% |
What The Price Requires (Inversion)
The assumption today's price embeds, recovered by inverting the valuation.
| Field | Value |
|---|---|
| Inversion basis | whole-company |
| Operating margin needed | 20.3% |
| Operating margin today | 11.5% |
| Margin expansion implied | +8.8pp |
| Must persist for | 7.5y |
| Multiple paid | 46x operating income |
The operating-margin requirement is derived from the framework's value band at year 12, a separately labeled basis from the headline growth/duration solve.
Solve inputs: computed at a 8.4% cost of capital; growth searched up to the 25% self-funding ceiling; each 1pp moves the implied horizon ~2.1 years.
How unusual the bet is: elevated
| Reference | Value |
|---|---|
| vs own history | +0.37σ |
| cohort percentile (of 177 peers) | 75 |
| sustained it ~7.5 years at this level | 29% |
| implied end-window share | 0% |
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 | 7.84x | 5 | expensive |
| Earnings | 4.65x | 4 | expensive |
| Relative | 1.71x | 3 | expensive |
| Growth | 1.05x | 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 7.4%); the inversion above states its own rate.
Per-Model Detail (n=15)
| Model | Family | FV | Price/FV | Applicable | Methodology |
|---|---|---|---|---|---|
| DCF Perpetual Growth | Growth | $106.57 | 1.04x | yes | FCF base $0.5B, growth 5% (input: historical growth), terminal g 4.0%, WACC 7.4%, 6yr projection |
| DCF Exit Multiple | Growth | $105.63 | 1.05x | yes | Exit EV/EBITDA: 17.3x / 19.3x / 21.3x (bear / base = today's held flat / bull), 6yr |
| Relative Valuation | Relative | $69.37 | 1.60x | yes | P/E 28.12x (blended: static sector reference 18x + trailing (TTM) 52x), scenarios: 23.5x / 28.1x / 32.7x (bear / base = reference held flat / bull), EV/EBITDA 14.18x |
| Simple DDM | Growth | — | — | no | — |
| Two-Stage DDM | Growth | — | — | no | — |
| Simple Excess Return | Asset | $23.16 | 4.79x | yes | BV/sh $64.20, ROE (TTM) 3.3%, ke 9.3% |
| Two-Stage Excess Return | Asset | $14.13 | 7.84x | yes | 5yr excess ROE then converge to ke=9.3% |
| Discounted Future Market Cap | Growth | $82.97 | 1.34x | yes | Rev $2.9B, growth 5% (input: historical growth; tapered), Terminal P/S: 3.6x / 4.3x / 5.0x (bear / base = today's held flat / bull, cap 8x) |
| Growth-Adjusted P/E | Relative | — | — | no | — |
| Margin Trajectory | Growth | — | — | no | — |
| Earnings Power Value | Earnings | $30.69 | 3.61x | yes | Normalized EBIT (5y avg op income, one-time charges added back) $0.54B × (1−18%) / WACC 7.4% → EPV (no growth) |
| Residual Income | Asset | $10.59 | 10.47x | yes | BV $64.20 + 5yr PV of (ROE (TTM) 3.3% − Kₑ 9.3%) × BV; BV grows 2.2%/yr |
| Graham Number | Asset | $54.82 | 2.02x | yes | √(22.5 × EPS $2.08 × BVPS $64.20) — Graham's conservative floor |
| EV/EBITDA Relative | Relative | $60.69 | 1.83x | yes | EBITDA $0.77B × sector EV/EBITDA 12.0x |
| FCF Yield | Earnings | $25.35 | 4.37x | yes | FCF $492.7M / Kₑ 9.3% — zero-growth perpetuity |
| SBC-Adj FCF Yield | Earnings | $22.26 | 4.98x | yes | SBC-adj FCF $0.46B (FCF $0.49B − SBC $0.03B) capitalized at Kₑ |
| Ben Graham Formula | Earnings | $1.74 | 63.70x | yes | EPS $2.08 × (8.5 + 2×-5.0%) × (4.4 / 5.3%) (excluded from median) |
| ROIC-Justified P/B | Asset | $5.56 | 19.93x | yes | BV $64.20 × (ROIC 0.6% / WACC 7.4%) |
| P/Sales Sector | Relative | $64.86 | 1.71x | yes | Revenue $2.90B × sector P/S 2.5x |
| PEG Fair Value | Relative | — | — | no | — |
| Earnings Yield | Earnings | $22.49 | 4.93x | yes | EPS $2.08 / 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 | — |
Solvency
| Field | Value |
|---|---|
| Net debt | $2.4b |
| Net debt / NOPAT (after-tax) | 9.02x |
| Net debt / operating income (pre-tax) | 7.38x |
| Interest coverage | 3.4x |
| Share count CAGR (buyback) | -3.0% |
| Burning cash | no |
Bullet Takeaways
- Revvity is a life-sciences and diagnostics company whose reported operating margin near 12% understates the business, because it carries heavy acquisition amortization on top of a higher underlying profitability.
- The price sits at the very top of its peer distribution, paying about 42 times trailing operating income, the steepest multiple in its analytical-tools cohort.
- The watch item is capital allocation and portfolio reshaping: Revvity is divesting its China immunodiagnostics business for up to $200 million while buying back about 3% of shares a year.
Bull Case
Revvity's capital allocation tells you how management sees the business: prune the lower-quality revenue, reinvest in the higher-margin core, and retire shares along the way. In Q1 2026 the company signed a letter of intent to sell its China immunodiagnostics business, about 6% of 2025 revenue, for up to $200 million, with completion expected in 2027. That is a deliberate trade of a lower-margin, geopolitically exposed unit for a cleaner, higher-quality revenue mix. The filing frames the strategy as "augmenting growth in both of our core business segments, Life Sciences and Diagnostics, through strategic acquisitions and licensing", a buy-the-good, sell-the-marginal discipline. The share count has fallen about 3% a year on top.
The underlying economics are stronger than the GAAP margin shows. Reported operating margin near 12% is weighed down by amortization from the acquisitions that built the company; on the basis management reports, adjusted operating income was $168 million in Q1 2026 at a 23.6% adjusted operating margin. That is a high-quality margin profile, and much of the revenue is recurring: reagents, consumables, and diagnostic tests that customers reorder regardless of the equipment-purchase cycle. Recurring revenue in life-science tools is the durable, compounding kind.
The demand backdrop is improving at the margin. Q1 2026 revenue was $711 million with 3% organic growth and adjusted EPS of $1.06 beat expectations, and management guided full-year pro forma organic revenue growth of 3% to 4% with pro forma adjusted EPS of $5.20 to $5.30. New flagship product launches aimed at higher-margin segments are intended to accelerate that growth. A recurring-revenue franchise with improving organic growth, a margin understated by amortization, and disciplined capital allocation is the bull case for paying up.
Bear Case
Life-science tools sell into research budgets, and research budgets are cyclical and politically exposed, which is the heart of the bear case. The filing is explicit that demand depends on funding subject to forces outside the company's control, warning that "government funding is subject to economic conditions and the political process, which is inherently fluid and unpredictable" and that softness creates pricing pressure and collection risk. Academic, government, and pharmaceutical research spending drives a large share of Revvity's revenue, and when those budgets tighten, organic growth slows across the whole portfolio at once. The recent 3% organic growth is modest, and it is happening in a still-constrained funding environment.
The margin is already moving the wrong way. Adjusted operating margin fell to 23.6% in Q1 2026 from 25.6% a year earlier, which management attributed to higher investments and mix shifts. A company priced for durable compounding cannot afford sustained margin erosion, and the gap between the reported 12% GAAP margin and the 23.6% adjusted figure is itself a reminder of how much acquisition amortization the business carries. The China divestiture cleans the portfolio but also removes revenue, so the reshaping is a near-term drag before it is a long-term benefit.
The valuation leaves no room for the cycle to disappoint. At about 42 times trailing operating income, the price sits at the very top of its peer distribution, well beyond the upper quartile, and no standard value method comes close: the asset-value methods land seven times below the price, the earnings-power methods over four times below, and only the forward-growth methods reach it. The price is paying for a durability premium against a peer group, Thermo Fisher, Danaher, Agilent, Mettler-Toledo, that trades at lower multiples for similar or better growth. Net debt of about $2.4 billion is roughly 6.6 times reported operating income with interest covered about 3.8 times, leverage that is manageable on the adjusted figures but tighter on the reported ones. A top-of-cohort multiple on a business with slowing organic growth, compressing margins, and a funding-dependent end market has the thinnest margin for error in its peer set.
Valuation
The price asks a lot, and reading it requires correcting for the amortization that depresses the denominator. At about 42 times trailing operating income, the multiple sits at the very top of the peer distribution, but the reported operating margin near 12% is held down by acquisition amortization; on the company's adjusted basis the margin is 23.6%, so the true multiple on normalized earnings is lower than 42 times suggests. Even so, inverting the price implies operating growth held at its self-funding ceiling for roughly seven years, a pace only about a third of comparable companies have sustained that long.
The methods are unanimous that the price is rich, which is the signal to read carefully. No value family reaches it on reported numbers: the asset-value methods land far below, the earnings-power methods well below, and only the forward-growth methods reach the price, by crediting the durable recurring-revenue compounding the static frames cannot price. The peer comparison is the sharpest lens here, because the analytical-tools cohort, Thermo Fisher, Danaher, Agilent, Mettler-Toledo, Waters, gives a clean read, and Revvity trades at the top of that group. The premium is the market paying for recurring revenue and portfolio quality; the question is whether 3% to 4% organic growth justifies a top-of-cohort multiple.
Solvency frames the risk without resolving it. Net debt of about $2.4 billion is roughly 6.6 times reported operating income with interest covered about 3.8 times; on the adjusted earnings the leverage is more comfortable, and the divergence between the two is again the amortization story. The share count has fallen about 3% a year, real capital return. What a buyer underwrites at this price is that the recurring-revenue base compounds durably and that the margin recovers from its recent dip, paid for at a multiple richer than peers with comparable growth. The decisive variable is the research-funding cycle, which the price assumes turns supportive.
Catalysts
Q1 2026 was a beat on earnings with steady but unspectacular growth. Revenue was $711 million with 3% organic growth, and adjusted EPS of $1.06 beat the $1.04 estimate. The blemish was margin: adjusted operating income of $168 million translated to a 23.6% adjusted operating margin, down from 25.6% a year earlier on higher investments and mix shifts, the trend the bear case watches.
The strategic catalyst was the portfolio move. Revvity signed a letter of intent on April 16, 2026 to sell its China immunodiagnostics business, about 6% of 2025 revenue, for up to $200 million, with completion expected in 2027, and announced new flagship product launches aimed at higher-margin segments. For full-year 2026 the company guided to pro forma revenue of $2.81 billion to $2.84 billion, pro forma organic growth of 3% to 4%, and pro forma adjusted EPS of $5.20 to $5.30.
What to watch is whether organic growth accelerates as new products ramp and the research-funding environment stabilizes, and whether the adjusted margin recovers from its recent decline. The China divestiture progressing toward its 2027 close and the pace of new-product adoption are the events that move the story; continued funding softness and margin compression are the most direct risks. The next organic-growth and margin print is the test.
Peer Cohorts (Per Segment, With Filing Citations)
Life Sciences / Diagnostics (reported)
- TMO (THERMO FISHER SCIENTIFIC INC.)
- (no filing in the citation store)
- DHR (Danaher Corporation)
- (no filing in the citation store)
- A (AGILENT TECHNOLOGIES, INC.)
- (no filing in the citation store)
- MTD (Mettler-Toledo International Inc.)
- (no filing in the citation store)
- WAT (Waters Corporation)
- (no filing in the citation store)
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.
- 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.
Sources
Revvity Q1 2026 earnings release, May 2026