Xylem Inc.

NYSE:XYL Stock Report

Market Cap: US$33.4b

Xylem Valuation

Is XYL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of XYL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: XYL ($138.25) is trading above our estimate of fair value ($136.86)

Significantly Below Fair Value: XYL is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for XYL?

Key metric: As XYL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for XYL. This is calculated by dividing XYL's market cap by their current earnings.
What is XYL's PE Ratio?
PE Ratio35.5x
EarningsUS$948.00m
Market CapUS$33.38b

Price to Earnings Ratio vs Peers

How does XYL's PE Ratio compare to its peers?

The above table shows the PE ratio for XYL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.2x
IR Ingersoll Rand
59.2x26.27%US$32.3b
OTIS Otis Worldwide
25.6x12.29%US$34.3b
DOV Dover
26x12.40%US$27.3b
SNA Snap-on
18x6.42%US$18.2b
XYL Xylem
35.5x13.86%US$33.4b

Price-To-Earnings vs Peers: XYL is expensive based on its Price-To-Earnings Ratio (35.5x) compared to the peer average (32.2x).

Price to Earnings Ratio vs Industry

How does XYL's PE Ratio compare vs other companies in the US Machinery Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WNC Wabash National
1.5x-118.35%US$395.04m
RAIL FreightCar America
2.3x-25.99%US$186.59m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
GTEC Greenland Technologies Holding
1.3x-16.11%US$18.26m
No more companies available in this PE range
XYL 35.5xIndustry Avg. 26.0xNo. of Companies17PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: XYL is expensive based on its Price-To-Earnings Ratio (35.5x) compared to the US Machinery industry average (26x).

Price to Earnings Ratio vs Fair Ratio

What is XYL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

XYL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.5x
Fair PE Ratio28.3x

Price-To-Earnings vs Fair Ratio: XYL is expensive based on its Price-To-Earnings Ratio (35.5x) compared to the estimated Fair Price-To-Earnings Ratio (28.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst XYL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$137.10
US$167.41
+22.11%
8.54%US$182.00US$129.00n/a17
Dec ’26US$139.41
US$167.76
+20.34%
9.01%US$182.00US$129.00n/a17
Nov ’26US$150.85
US$164.89
+9.31%
10.27%US$182.00US$129.00n/a18
Oct ’26US$147.88
US$157.72
+6.66%
9.67%US$175.00US$125.00n/a18
Sep ’26US$141.56
US$156.41
+10.49%
10.81%US$175.00US$125.00n/a17
Aug ’26US$142.18
US$155.44
+9.32%
10.97%US$175.00US$125.00n/a16
Jul ’26US$131.00
US$141.42
+7.96%
10.34%US$172.00US$116.00n/a17
Jun ’26US$126.04
US$140.31
+11.32%
10.33%US$172.00US$116.00n/a17
May ’26US$120.75
US$139.26
+15.33%
11.47%US$174.00US$114.00n/a16
Apr ’26US$119.88
US$146.13
+21.90%
11.45%US$174.00US$114.15n/a16
Mar ’26US$130.89
US$146.13
+11.65%
11.45%US$174.00US$114.15n/a16
Feb ’26US$124.04
US$143.83
+15.96%
11.46%US$168.00US$113.00n/a17
Jan ’26US$116.02
US$147.71
+27.32%
10.22%US$166.00US$113.00n/a17
Dec ’25US$126.75
US$147.95
+16.72%
10.51%US$172.00US$113.00US$139.4117
Nov ’25US$119.46
US$148.65
+24.44%
9.87%US$172.00US$113.00US$150.8517
Oct ’25US$134.39
US$153.06
+13.90%
10.00%US$172.00US$114.00US$147.8817
Sep ’25US$137.53
US$153.24
+11.42%
9.98%US$172.00US$114.00US$141.5617
Aug ’25US$133.33
US$152.38
+14.29%
10.16%US$172.00US$114.00US$142.1816
Jul ’25US$131.53
US$148.51
+12.91%
10.38%US$168.00US$112.00US$131.0016
Jun ’25US$141.02
US$147.07
+4.29%
9.87%US$163.00US$112.00US$126.0416
May ’25US$130.96
US$136.72
+4.40%
11.05%US$157.00US$106.00US$120.7517
Apr ’25US$128.64
US$131.83
+2.48%
12.16%US$150.00US$100.00US$119.8816
Mar ’25US$127.94
US$129.21
+1.00%
11.48%US$150.00US$100.00US$130.8915
Feb ’25US$115.38
US$121.99
+5.73%
9.27%US$140.00US$100.00US$124.0416
Jan ’25US$114.36
US$118.74
+3.83%
8.31%US$136.00US$100.00US$116.0216
Dec ’24US$106.20
US$117.54
+10.68%
9.13%US$135.00US$100.00US$126.7513
US$167.41
Fair Value
17.4% undervalued intrinsic discount
17
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/12/15 23:40
End of Day Share Price 2025/12/15 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Xylem Inc. is covered by 35 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Michael HalloranBaird
Scott DavisBarclays