---
title: Xylem (XYL) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/xyl
ticker: XYL
as_of: 2026-10-17
sector: Industrials
industry: Industrial - Machinery
---
# Xylem (XYL)

Xylem (XYL) closed at $104.07 on Oct 16, 2026, overvalued by 21% vs its model value of $86.06 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $104.07 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $86.06 |
| Price vs model | overvalued by 21% vs model |
| Range of that model | $58.80 – $170.68 |
| Market value | $24.3B |
| P/E (fiscal 2025) | 26.5 |
| Net margin (fiscal 2025) | 10.6% |
| Free cash flow (fiscal 2025) | $910.0M |
| Dividend yield (trailing twelve months) | 1.62% |
| Beta | 0.99 |
| Cost of capital (WACC) | 8.83% |
| Business classification | Mature & Stable (Moderate growth (~11% recent), Moderate margins (11% net margin), Pays dividends, Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Near 52-week lows | #19 | +3.4% | https://sweetvaluelab.com/lists/near-52-week-lows |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.62% |
| Dividends per share, last 12 months | $1.69 |
| Dividends / free cash flow (fiscal 2025) | 43.0% |
| Raised | 13 years in a row |
| Growth over 5 years | 9.0% a year |
| Latest payment | $0.43, ex-date Aug 27, 2026, paid Sep 24, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 25, 2021 | $1.10 |
| To Aug 31, 2022 | $1.18 |
| To Aug 30, 2023 | $1.29 |
| To Aug 29, 2024 | $1.41 |
| To Aug 28, 2025 | $1.56 |
| Trailing twelve months (to Aug 27, 2026) | $1.69 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $86.06 | $58.80 | $170.68 |
| DCF · Perpetuity growth · 10y | cross check | $89.63 | $62.86 | $171.14 |
| DCF · EBITDA exit · 5y | cross check | $102.73 | $72.46 | $138.38 |
| DCF · EBITDA exit · 10y | cross check | $102.75 | $72.70 | $142.82 |
| P/E · peers | cross check | $108.14 | $73.10 | $147.23 |
| P/E · own history | cross check | $196.78 | $168.09 | $235.45 |
| PEG | sanity check | $92.09 | $92.09 | $92.09 |
| EV/EBITDA · peers | cross check | $106.35 | $79.40 | $132.54 |
| EV/Revenue · peers | cross check | $112.88 | $82.79 | $146.59 |
| Earnings power value | cross check | $37.30 | $31.60 | $45.32 |
| Dividend discount | cross check | $33.79 | $23.38 | $54.74 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | McShane Geri-Michelle | SVP, CAO | Grant / award | 4,257 | $0 |
| Oct 1, 2026 | McShane Geri-Michelle | SVP, CAO | Grant / award | 4,225 | $0 |
| Sep 1, 2026 | van der Berg Andrea Michele | EVP & Chief Financial Officer | Grant / award | 1,693 | $0 |
| Sep 1, 2026 | van der Berg Andrea Michele | EVP & Chief Financial Officer | Grant / award | 6,034 | $644,974.3 |
| Sep 1, 2026 | Johnston Joseph Patrick | EVP & President, AW | Grant / award | 645 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 29, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1524472/000152447226000134/xyl-20260929.htm |
| Sep 17, 2026 | 424B5 | Prospectus supplement | https://www.sec.gov/Archives/edgar/data/1524472/000119312526394343/d180255d424b5.htm |
| Sep 15, 2026 | 424B5 | Prospectus supplement | https://www.sec.gov/Archives/edgar/data/1524472/000119312526391375/d180255d424b5.htm |
| Sep 9, 2026 | 8-K | 1.01 Entry into a Material Agreement; 1.02 Termination of a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1524472/000152447226000132/xyl-20260908.htm |
| Aug 18, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1524472/000152447226000123/xyl-20260813.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Mairs & Power | 2026-06-30 | 15,450 | $1.8M |

1 tracked managers in all.

## About

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for utility, industrial, and residential and commercial building services settings worldwide. It operates through Water Infrastructure; Applied Water; Measurement and Control Solutions; and Water Solutions and Services segments. The company offers water, wastewater, and storm water pumps and controls and systems; filtration, disinfection, and biological treatment equipment under the Flygt, Ionpure, Leopold, Neptune Benson, Sanitare, Wallace & Tiernan, and Wedeco brands; and pumps, valves, heat exchangers, controls, and dispensing equipment used for water and focuses on the residential, commercial and industrial markets under the Rule, Bell & Gossett, Flojet, Goulds Water Technology, Jabsco, and Lowara brands. It also provides smart meters, network communicati…

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Source: https://sweetvaluelab.com/stocks/xyl (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.