Assessing Zurn Elkay Water Solutions (ZWS) Valuation After A Strong Multi‑Year Shareholder Return

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Why Zurn Elkay Water Solutions Stock Is On Investors’ Radar

Zurn Elkay Water Solutions (ZWS) is drawing attention after its recent share price move, with the stock last closing at $49.67 and showing mixed returns over the past week, month, and past 3 months.

See our latest analysis for Zurn Elkay Water Solutions.

After a solid run with a 1-year total shareholder return of 35.45% and a 3-year total shareholder return of about 2.3x, recent 90-day share price returns have softened, suggesting that momentum has cooled even as long term holders have been rewarded.

If Zurn Elkay's move has you looking beyond a single stock, this can be a moment to see what else fits your thesis through our screener of 38 power grid technology and infrastructure stocks

With the stock near $49.67 after a strong 1-year run and total returns over 3 years more than doubling, the key question now is simple: is Zurn Elkay still mispriced or is the market already baking in future growth?

Most Popular Narrative: 11.7% Undervalued

Analysts who follow Zurn Elkay see fair value at $56.22 per share versus the last close at $49.67, and anchor that view on a detailed earnings and margin roadmap discounted at 8.66%.

The rollout and market adoption of the new Elkay Pro Filtration platform with drop-in replacements, longer filter life, proprietary filters, and IoT/connectivity positions the company to accelerate replacement cycles and sustain double-digit growth in high-margin filtration revenue, supporting higher earnings and margin expansion.

Read the complete narrative.

Curious what kind of revenue growth, margin profile, and future P/E multiple are baked into that fair value, and how tightly they all fit together.

Result: Fair Value of $56.22 (UNDERVALUED)

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

However, this hinges on school filtration mandates and nonresidential construction staying supportive, and any legislative delays or funding cuts could quickly challenge that fair value story.

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

Another Way To Look At Value

Analysts see upside to $56.22, yet the current P/E of 39.4x is far above the Building industry at 20.6x, the peer average at 19.2x, and even the fair ratio estimate of 25.8x. That rich gap adds valuation risk, so how comfortable are you paying this kind of premium?

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

Story Continues

NYSE:ZWS P/E Ratio as at May 2026

Next Steps

If this mix of optimism and concern feels familiar, that is a signal to review the figures yourself and move quickly to shape your own view with the 2 key rewards and 1 important warning sign

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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.

Companies discussed in this article include ZWS.

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