Veralto Corp
VLTOAbove valueExpectations · demandingHeld by 4 superinvestors.
SEC 10-K · fundamentals
Business quality
As of 2025-12-31Valuation basis: trailing twelve months to 2026-07-03 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +6.0%
- Net margin
- 17.1%
- ROE
- 30.3%
- FCF margin
- 18.4%
Valuation · value band
Above fair value
Zero-growth floor
$35
Central IV
$49
Optimistic top
$62
Veralto Corp (VLTO): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $35–$62 / sh. Today’s price sits above both (price $101 as of 2026-10-16).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 3% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 10.8% · Zero-growth downside $35
Price as of 2026-10-16 · yahoo · DGS10 5.1% @ 2026-10-15.
Method & numbers
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $35.39 – $56.84 · Greenwald $48.86 – $62.42 (neutral $55.13) · zero-growth base $43.98 · reproduction $6.76
Moat Franchise (moat) · terminal value 46% of present value · owner-earnings yield 4% vs 10Y 5.1%.
Graham earnings-power value (normalized NOPAT)$35.05 – $43.98 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-07-03, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 212% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).
Buffett owner-earnings value$35.98 – $43.97 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-07-03, 2024, 2023, 2022, 2021
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 212% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).
Reproduction value = tangible net assets $-898.00M + capitalized R&D $561.20M（FY 2026, 2024, 2023, 2022） = $6.76 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value: if the moat holds for 10 yr at ROIIC ≈ 30%, $4.89–$18.44 / sh (neutral $11.16). Conservative, not a forecast.
Window TTM 2026-07-03, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Owner-earnings DCF: growth g₁ 3% · OE FY TTM 2026-07-03, 2024, 2023, 2022, 2021 · Discount band: 9.60%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-10-15). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 13%.
Valuation basis: trailing twelve months to 2026-07-03 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 16.6% a year in owner-earnings for the next few years. Revenue actually grew 3.9% a year.
The market wants it well ahead of its own track record.
SEC 13F · holders
Superinvestors Holding This Security
4 holders · $22.6M combined · this quarter +1 opened / -0 exited
- Value$11.0MWeight (prev→now)0.0% → 0.0% ▼
- Value$6.9MWeight (prev→now)0.2% → 0.5% ▲
- Value$3.7MWeight (prev→now)New · 0.0%
- Value$935,308Weight (prev→now)0.0% → 0.0% ▼
SEC 13F · notes
Written summary
Written summary
Veralto Corp (VLTO) is held by 4 of the superinvestors tracked on Compounder, with a combined $22.6M in reported 13F value. The largest position belongs to Bill Gates, where it makes up 0.0% of the portfolio.
Other notable holders by value include Wallace Weitz (0.5% of its book), Ray Dalio (0.0% of its book) and Jim Cullen (0.0% of its book).
In the quarter ended 2026-06-30, 1 of the tracked filers opened a new position in VLTO, 1 added to existing ones, 1 trimmed, and 0 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Veralto Corp (VLTO) also commonly hold →
- Walmart IncWMT3 holders
- Microsoft CorpMSFT3 holders
- Oracle CorpORCL3 holders
- Danaher CorpDHR3 holders
- Comcast Corp-Class ACMCSA3 holders
- Taiwan Semiconductor-Sp AdrTSM3 holders
VLTO's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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