Arq Inc (ARQ) is undervalued and Zurn Elkay Water Solutions Corp (ZWS) is overvalued.
Against our estimates of intrinsic value, ARQ trades at the wider discount: a margin of safety of +40%, against -126% for ZWS.
Values as of the 22 Sept 2026 close.
A 1.5x revenue multiple, discounted for its losses, values the shares at $3.48; the price of $2.07 is 40% below that value.
Leak Score 56/100 on 2 of 12 signals
Discounting its cash flows at 10.0% (average of 3 methods) values the shares at $20.76; the price of $46.91 is 126% above that value, and 72% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | ARQ | ZWS |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $2.07 | $46.91 |
| Intrinsic value | $3.48 | $20.76 |
| Margin of safety | +40% | -126% |
| Leak Score | 56/100 (2/12) | 59/100 (3/12) |
| Market cap | $90M | $7.8B |
| Revenue growth, 5 years | 12.3% | -2.4% |
| Operating margin | -6.6% | 21.3% |
| Net margin | -42.3% | 15.4% |
| Return on equity | -27.1% | 16.9% |
| Debt to equity | 0.23 | 0.33 |
| P/E | — | 28.8x |
| Forward P/E | 124.2x | 23.1x |
| P/B | 0.5x | 4.7x |
| Dividend yield | — | 0.9% |