Flowserve (FLS): Revisiting Valuation After a Strong Three-Month Share Price Run

Flowserve (FLS) has quietly rewarded patient shareholders, with the stock up about 24% over the past year and roughly 25% in the past 3 months, outpacing many industrial peers.

See our latest analysis for Flowserve.

With the share price now around $71, Flowserve has built steady momentum, with a strong 90 day share price return and a standout three year total shareholder return that point to rising confidence in its long term prospects.

If Flowserve’s run has you rethinking your watchlist, this could be a good moment to explore aerospace and defense stocks for more industrial style opportunities with different risk and growth profiles.

With earnings growing and the stock still trading below both intrinsic value estimates and analyst targets, investors now face a key question: is Flowserve still undervalued, or is the market already pricing in its future growth?

Most Popular Narrative Narrative: 7.5% Undervalued

Flowserve’s most followed narrative pins fair value at $76.80, a premium to the $71.06 last close that frames its current upside case.

The analysts have a consensus price target of $66.5 for Flowserve based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $76.0, and the most bearish reporting a price target of just $60.0.

Read the complete narrative.

Want to see the math behind that higher fair value, and why it leans on rising margins, moderate growth, and a lower future earnings multiple than today? Dive in.

Result: Fair Value of $76.80 (UNDERVALUED)

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

However, sustained delays in large energy projects or renewed execution missteps in the Flow Control Division could quickly challenge the current undervaluation narrative.

Find out about the key risks to this Flowserve narrative.

Build Your Own Flowserve Narrative

If you see things differently, or would rather test the numbers yourself, you can build a personalized Flowserve view in minutes. Do it your way.

A great starting point for your Flowserve research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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