ESE Valuation

ESCO Technologies Inc

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201.520

+0.3(0.149%)1D

Overview
Forecast
Valuation
Earnings

ESE Relative Valuation

ESE'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, ESE is overvalued; if below, it's undervalued.

Historical Valuation

ESCO Technologies Inc (ESE) is now in the Fair zone, suggesting that its current forward PE ratio of 29.43 is considered Fairly compared with the five-year average of 26.62. The fair price of ESCO Technologies Inc (ESE) is between 158.75 to 213.04 according to relative valuation methord.

Relative Value

Fair Zone

158.75-213.04

Current Price：201.22

Fair

29.43

Trailing

Forward

18.62

EV/EBITDA

ESCO Technologies Inc. (ESE) has a current EV/EBITDA of 18.62. The 5-year average EV/EBITDA is 14.67. The thresholds are as follows: Strongly Undervalued below 10.03, Undervalued between 10.03 and 12.35, Fairly Valued between 16.99 and 12.35, Overvalued between 16.99 and 19.31, and Strongly Overvalued above 19.31. The current Forward EV/EBITDA of 18.62 falls within the Overvalued range.

23.05

EV/EBIT

ESCO Technologies Inc. (ESE) has a current EV/EBIT of 23.05. The 5-year average EV/EBIT is 20.00. The thresholds are as follows: Strongly Undervalued below 13.36, Undervalued between 13.36 and 16.68, Fairly Valued between 23.32 and 16.68, Overvalued between 23.32 and 26.64, and Strongly Overvalued above 26.64. The current Forward EV/EBIT of 23.05 falls within the Historic Trend Line -Fairly Valued range.

4.06

ESCO Technologies Inc. (ESE) has a current PS of 4.06. The 5-year average PS is 2.82. The thresholds are as follows: Strongly Undervalued below 1.77, Undervalued between 1.77 and 2.30, Fairly Valued between 3.34 and 2.30, Overvalued between 3.34 and 3.86, and Strongly Overvalued above 3.86. The current Forward PS of 4.06 falls within the Strongly Overvalued range.

21.95

P/OCF

ESCO Technologies Inc. (ESE) has a current P/OCF of 21.95. The 5-year average P/OCF is 20.01. The thresholds are as follows: Strongly Undervalued below 6.93, Undervalued between 6.93 and 13.47, Fairly Valued between 26.55 and 13.47, Overvalued between 26.55 and 33.09, and Strongly Overvalued above 33.09. The current Forward P/OCF of 21.95 falls within the Historic Trend Line -Fairly Valued range.

26.76

P/FCF

ESCO Technologies Inc. (ESE) has a current P/FCF of 26.76. The 5-year average P/FCF is 27.51. The thresholds are as follows: Strongly Undervalued below 6.17, Undervalued between 6.17 and 16.84, Fairly Valued between 38.18 and 16.84, Overvalued between 38.18 and 48.85, and Strongly Overvalued above 48.85. The current Forward P/FCF of 26.76 falls within the Historic Trend Line -Fairly Valued range.

ESCO Technologies Inc (ESE) has a current Price-to-Book (P/B) ratio of 3.92. Compared to its 3-year average P/B ratio of 2.61 , the current P/B ratio is approximately 50.10% higher. Relative to its 5-year average P/B ratio of 2.47, the current P/B ratio is about 58.37% higher. ESCO Technologies Inc (ESE) has a Forward Free Cash Flow (FCF) yield of approximately 3.15%. Compared to its 3-year average FCF yield of 3.09%, the current FCF yield is approximately 1.72% lower. Relative to its 5-year average FCF yield of 3.18% , the current FCF yield is about -1.06% lower.

3.92

P/B

Median3y

2.61

Median5y

2.47

3.14

FCF Yield

Median3y

3.09

Median5y

3.18

Competitors Valuation Multiple

The average P/S ratio for ESE's competitors is 3.73, providing a benchmark for relative valuation. ESCO Technologies Inc Corp (ESE) exhibits a P/S ratio of 4.05, which is 8.67% above the industry average. Given its robust revenue growth of 26.88%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ESE.N

ESCO Technologies Inc

Sensata Technologies Holding PLC

Performance Decomposition

Market capitalization of ESE increased by 56.11% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.60 to 47.47.

The secondary factor is the Revenue Growth, contributed 26.88%to the performance.

Overall, the performance of ESE in the past 1 year is driven by P/E Change. Which is more unsustainable.

26.88%

233.57M → 296.34M

Revenue Growth

-31.11%

12.12 → 8.35

Margin Expansion

60.34%

29.60 → 47.47

P/E Change

56.11%