ESAB Relative Valuation
ESAB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ESAB is overvalued; if below, it's undervalued.
Historical Valuation
ESAB Corp (ESAB) is now in the Fair zone, suggesting that its current forward PE ratio of 19.85 is considered Fairly compared with the five-year average of 17.44. The fair price of ESAB Corp (ESAB) is between 90.78 to 132.35 according to relative valuation methord.
Relative Value
Fair Zone
90.78-132.35
Current Price：117.10
Fair
19.93
PE
1Y
3Y
5Y
Trailing
Forward
14.26
EV/EBITDA
ESAB Corp. (ESAB) has a current EV/EBITDA of 14.26. The 5-year average EV/EBITDA is 12.25. The thresholds are as follows: Strongly Undervalued below 6.85, Undervalued between 6.85 and 9.55, Fairly Valued between 14.95 and 9.55, Overvalued between 14.95 and 17.65, and Strongly Overvalued above 17.65. The current Forward EV/EBITDA of 14.26 falls within the Historic Trend Line -Fairly Valued range.
15.63
EV/EBIT
ESAB Corp. (ESAB) has a current EV/EBIT of 15.63. The 5-year average EV/EBIT is 13.59. The thresholds are as follows: Strongly Undervalued below 8.13, Undervalued between 8.13 and 10.86, Fairly Valued between 16.32 and 10.86, Overvalued between 16.32 and 19.05, and Strongly Overvalued above 19.05. The current Forward EV/EBIT of 15.63 falls within the Historic Trend Line -Fairly Valued range.
2.39
PS
ESAB Corp. (ESAB) has a current PS of 2.39. The 5-year average PS is 1.94. The thresholds are as follows: Strongly Undervalued below 0.64, Undervalued between 0.64 and 1.29, Fairly Valued between 2.59 and 1.29, Overvalued between 2.59 and 3.25, and Strongly Overvalued above 3.25. The current Forward PS of 2.39 falls within the Historic Trend Line -Fairly Valued range.
17.10
P/OCF
ESAB Corp. (ESAB) has a current P/OCF of 17.10. The 5-year average P/OCF is 15.18. The thresholds are as follows: Strongly Undervalued below 7.19, Undervalued between 7.19 and 11.18, Fairly Valued between 19.17 and 11.18, Overvalued between 19.17 and 23.17, and Strongly Overvalued above 23.17. The current Forward P/OCF of 17.10 falls within the Historic Trend Line -Fairly Valued range.
19.37
P/FCF
ESAB Corp. (ESAB) has a current P/FCF of 19.37. The 5-year average P/FCF is 16.87. The thresholds are as follows: Strongly Undervalued below 8.70, Undervalued between 8.70 and 12.78, Fairly Valued between 20.96 and 12.78, Overvalued between 20.96 and 25.05, and Strongly Overvalued above 25.05. The current Forward P/FCF of 19.37 falls within the Historic Trend Line -Fairly Valued range.
ESAB Corp (ESAB) has a current Price-to-Book (P/B) ratio of 3.32. Compared to its 3-year average P/B ratio of 3.36 , the current P/B ratio is approximately -1.35% higher. Relative to its 5-year average P/B ratio of 3.05, the current P/B ratio is about 8.85% higher. ESAB Corp (ESAB) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.68%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.88% , the current FCF yield is about -100.00% lower.
3.33
P/B
Median3y
3.36
Median5y
3.05
3.39
FCF Yield
Median3y
4.68
Median5y
4.88
Competitors Valuation Multiple
The average P/S ratio for ESAB's competitors is 1.97, providing a benchmark for relative valuation. ESAB Corp Corp (ESAB) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 8.11%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ESAB decreased by 3.54% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 673.25M to 727.85M.
The secondary factor is the P/E Change, contributed 3.23%to the performance.
Overall, the performance of ESAB in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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