The water industry is a nearly perennially hot topic - almost every investment writer looks at the trends in freshwater infrastructure and eventually writes their "water is the commodity of the future" piece. For better or worse, the long-term potential of many players in the water space is pretty well accepted by investors, and many of these companies sport valuations not only higher than non-water industrials, but higher than what their cash flow would seem to be able to support. So it is worth asking, then, whether the well-run and well-respected Gorman-Rupp (GRC) is indeed overpriced today, or whether discounted cash flow just isn't an effective way to value this stock.
A Highly Focused Business, With Multiple...
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