Revvity Inc. (RVTY)

Conclusion

Revvity Inc. provides diagnostics and life-science research products, including instruments, reagents, software and assay platforms, used by pharmaceutical companies, laboratories and research institutions. At 160.72 USD on 9 November 2026, the shares carry a market capitalisation of 17.9 billion USD.

The verdict is overvalued. Today's multiples sit well above their own ten-year medians: P/E is 70.8 against a median of 36.7, and EV/EBITDA is 25.5 against a median of 19.0. The discounted cash flow gives 68.72 USD per share at a discount rate of 10.3%, and the fair value band runs from 73.42 to 110.14 USD with a midpoint of 91.78 USD, a margin of safety of -42.9% at the current price. The reverse DCF implies growth of 14.6% a year, while revenue has shrunk at a compound rate of -5.5% over five years.

What holds the case up is cash generation and earnings quality: free cash flow conversion is 233.7% on a trailing basis, the Piotroski score is 7 of 9, and the company beat estimates in all eight of the last quarters. The weakest numbers are the return on invested capital of 3.6% against a WACC of 9.5%, the five-year EPS decline of -20.0% a year, and net debt to EBITDA of 2.76. A sustained recovery in revenue would be needed to justify the current price.

Financial health

Financial strength is yellow: the current ratio of 2.65 and the quick ratio of 1.82 support the picture, while net debt to EBITDA of 2.76 and interest coverage of 4.07 are assessed as neutral. Debt to equity is 0.38. The Altman Z-score is not available because the inputs it needs are missing from the data, and the model was designed for manufacturers in any case. Insolvency risk: low, about 0.3% by the estimate of the Ohlson model over one to two years, based on the year-end 2025 figures. The interest expense of the company is not reported in the data, so the interest coverage figure is taken as given.

Earnings quality

Earnings quality is green, with three of three signals assessed as good. Free cash flow conversion is 233.7% on a trailing basis and 153.5% over five years, and the accrual ratio is -2.8%, which means cash earnings exceed reported earnings. Stock-based compensation is 0.85% of revenue, and free cash flow after it is 566.5 million USD. The share count has risen at 0.2% a year over five years, so there are no net buybacks. The Piotroski score is 7 of 9. The Beneish M-score is not available. The company beat earnings estimates in eight of eight quarters, with an average surprise of 6.3%. Analysts raised current-year estimates by 2.0% over 90 days, with four upward and two downward revisions in the last 30 days.

Profitability

Profitability is red, with one of four signals assessed as bad. The gross margin of 53.1% is above its ten-year median of 48.0%, but the operating margin of 12.7% sits below its median of 14.5%, and the net margin of 8.6% is below its median of 9.7%. The most important figure is the return on invested capital of 3.6% against a WACC of 9.5%, a gap of -6.0%, so the company earns less than its cost of capital. Return on equity is 3.5%. The DuPont split shows a net margin of 8.5%, an asset turnover of 0.23 and an equity multiplier of 1.68, so leverage does not inflate the return, which is simply low.

Growth

Growth is red, with two of four signals assessed as bad. Revenue compounds at -4.8% over three years, -5.5% over five years and 3.1% over ten years. Earnings per share compound at -22.0% over three years, -20.0% over five years and 1.3% over ten years. Free cash flow per share compound at -1.5% over three years, -9.2% over five years and 7.1% over ten years. Revenue grew in 8 of the last 10 years. Analysts expect earnings per share to grow by 10.8% next year, which is the main positive input for this section.

Valuation

Valuation is red, as the verdict is overvalued. Today's multiples are P/E 70.8 against a ten-year median of 36.7, a premium of 93.1%; EV/EBITDA 25.5 against 19.0, a premium of 34.2%; price to free cash flow 30.3 against 28.1, a premium of 7.8%; and price to sales 6.10 against 4.06, a premium of 50.1%. Price to book of 2.47 is at a discount of 17.6% to its median of 2.99. The DCF gives 68.72 USD per share; the fair value from historical multiples is 114.84 USD. The fair value band runs from 73.42 to 110.14 USD. The reverse DCF implies growth of 14.6% against five-year revenue growth of -5.5%, a gap of 20.1 points. The dividend yield is 0.2% and the payout on free cash flow is 5.3%. These fair values are an order of magnitude built on fixed assumptions, not a price target.

Risks

If revenue keeps shrinking, the price will be hard to justify, because the reverse DCF already requires growth of 14.6% a year. If the return on invested capital stays at 3.6% below a WACC of 9.5%, each new dollar invested destroys value and the growth case weakens. Net debt to EBITDA of 2.76 and interest coverage of 4.07 leave less room for setbacks. The Altman Z-score and the Beneish M-score are not available, and the company's interest expense is not reported. This analysis has no debt maturity schedule and no revenue split by segment, so refinancing risk and the sources of revenue decline cannot be examined.