Veralto (VLTO) Dividend Hike Prompts Fresh Look at Whether the Stock Still Trades Below Fair Value

Veralto (VLTO) just gave income investors something to chew on, with its board approving an 18% bump to the quarterly dividend. The payout is now set at 0.13 dollars per share and scheduled for payment in late January.

See our latest analysis for Veralto.

The move comes as Veralto’s share price sits around 100.05 dollars, with a modest positive 30 day share price return but a weaker 1 year total shareholder return. This suggests momentum is still rebuilding as investors reassess its growth and income mix.

If this dividend bump has you rethinking your income and growth balance, it could be a good time to hunt for other opportunities among fast growing stocks with high insider ownership.

But with shares already near 100 dollars and analysts penciling in upside to roughly 114 dollars, is Veralto still trading at a discount to its fundamentals, or has the market already priced in its next leg of growth?

Most Popular Narrative: 12.3% Undervalued

With Veralto closing at 100.05 dollars against a narrative fair value of 114.06 dollars, the valuation case leans in favor of patient compounding.

Analysts expect earnings to reach $1.1 billion (and earnings per share of $4.46) by about September 2028, up from $893.0 million today. The analysts are largely in agreement about this estimate.

Read the complete narrative.

Curious how steady, mid single digit growth, rising margins, and a premium future multiple can still point to upside from here? Explore the full playbook behind this projection.

Result: Fair Value of $114.06 (UNDERVALUED)

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

However, persistent China weakness and ongoing integration costs could restrain growth and margins, which challenges the notion that Veralto deserves a sustained premium valuation.

Find out about the key risks to this Veralto narrative.

Build Your Own Veralto Narrative

If you are not fully aligned with this view, or would rather dig into the numbers yourself, you can build a tailored narrative in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Veralto.

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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.

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