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    A Look At Zurn Elkay Water Solutions (ZWS) Valuation As Dividend Window And ESG Interest Draw Attention

    Simply Wall St·05/19/2026 12:24:27
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    Zurn Elkay Water Solutions (ZWS) is drawing fresh attention as the stock heads into an upcoming dividend window, with investors weighing its cash generation and focus on sustainability-oriented water infrastructure solutions.

    See our latest analysis for Zurn Elkay Water Solutions.

    Recent trading has been choppy, with the share price down 5.9% over the past week and 6.1% over the past three months. However, a 1-year total shareholder return of 29.5% indicates momentum that has built over a longer horizon.

    If Zurn Elkay’s dividend story has your attention, it can be worth widening your search across related infrastructure themes and checking out 35 power grid technology and infrastructure stocks

    With Zurn Elkay posting revenue of US$1.74b and net income of US$210.3m, plus a recent value score of 1 and only a small intrinsic discount, the key question now is whether the stock is mispriced or whether the market is already factoring in future growth.

    Most Popular Narrative: 14.6% Undervalued

    With Zurn Elkay Water Solutions last closing at $48.02 and the most followed narrative pointing to a fair value of $56.22, attention is firmly on what is driving that gap.

    Government funding and rising legislative requirements for water quality in schools (such as filter first mandates) are expected to drive broader adoption of advanced filtration and water safety products, expanding Zurn Elkay's addressable market and boosting long-term revenue growth.

    Read the complete narrative.

    Curious how this story turns into numbers? The fair value hinges on steady revenue gains, rising margins, and a premium earnings multiple that leans on those assumptions.

    Result: Fair Value of $56.22 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this depends on funding and legislation arriving on schedule, as well as nonresidential construction in healthcare and education holding up rather than slowing unexpectedly.

    Find out about the key risks to this Zurn Elkay Water Solutions narrative.

    Another View: Valuation Through Earnings Multiples

    The fair value estimate of $48.53 from our DCF model suggests Zurn Elkay is roughly in line with projected cash flows. However, the current P/E of 38.1x sits well above the US Building industry at 20.3x, the peer average at 18.8x, and the fair ratio of 25.7x. That gap points to valuation risk if sentiment cools, so how comfortable are you paying such a premium for this earnings profile?

    See what the numbers say about this price — find out in our valuation breakdown.

    NYSE:ZWS P/E Ratio as at May 2026
    NYSE:ZWS P/E Ratio as at May 2026

    Next Steps

    With sentiment clearly mixed, this is the moment to look through the data yourself and decide if the optimism matches your expectations. To see what is driving that optimism in more detail, review the 3 key rewards

    Looking for more investment ideas?

    If Zurn Elkay has sharpened your focus, do not stop here. Broaden your watchlist now and give yourself more options before the next move.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.