LECO Relative Valuation
LECO'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, LECO is overvalued; if below, it's undervalued.
Historical Valuation
Lincoln Electric Holdings Inc (LECO) is now in the Fair zone, suggesting that its current forward PE ratio of 23.18 is considered Fairly compared with the five-year average of 20.34. The fair price of Lincoln Electric Holdings Inc (LECO) is between 205.86 to 256.53 according to relative valuation methord.
Relative Value
Fair Zone
205.86-256.53
Current Price：244.05
Fair
23.18
PE
1Y
3Y
5Y
Trailing
Forward
15.85
EV/EBITDA
Lincoln Electric Holdings Inc. (LECO) has a current EV/EBITDA of 15.85. The 5-year average EV/EBITDA is 14.27. The thresholds are as follows: Strongly Undervalued below 10.60, Undervalued between 10.60 and 12.43, Fairly Valued between 16.10 and 12.43, Overvalued between 16.10 and 17.93, and Strongly Overvalued above 17.93. The current Forward EV/EBITDA of 15.85 falls within the Historic Trend Line -Fairly Valued range.
17.91
EV/EBIT
Lincoln Electric Holdings Inc. (LECO) has a current EV/EBIT of 17.91. The 5-year average EV/EBIT is 16.21. The thresholds are as follows: Strongly Undervalued below 11.97, Undervalued between 11.97 and 14.09, Fairly Valued between 18.32 and 14.09, Overvalued between 18.32 and 20.44, and Strongly Overvalued above 20.44. The current Forward EV/EBIT of 17.91 falls within the Historic Trend Line -Fairly Valued range.
2.97
PS
Lincoln Electric Holdings Inc. (LECO) has a current PS of 2.97. The 5-year average PS is 2.52. The thresholds are as follows: Strongly Undervalued below 1.76, Undervalued between 1.76 and 2.14, Fairly Valued between 2.89 and 2.14, Overvalued between 2.89 and 3.27, and Strongly Overvalued above 3.27. The current Forward PS of 2.97 falls within the Overvalued range.
19.48
P/OCF
Lincoln Electric Holdings Inc. (LECO) has a current P/OCF of 19.48. The 5-year average P/OCF is 18.07. The thresholds are as follows: Strongly Undervalued below 12.33, Undervalued between 12.33 and 15.20, Fairly Valued between 20.94 and 15.20, Overvalued between 20.94 and 23.81, and Strongly Overvalued above 23.81. The current Forward P/OCF of 19.48 falls within the Historic Trend Line -Fairly Valued range.
23.14
P/FCF
Lincoln Electric Holdings Inc. (LECO) has a current P/FCF of 23.14. The 5-year average P/FCF is 20.95. The thresholds are as follows: Strongly Undervalued below 15.21, Undervalued between 15.21 and 18.08, Fairly Valued between 23.81 and 18.08, Overvalued between 23.81 and 26.68, and Strongly Overvalued above 26.68. The current Forward P/FCF of 23.14 falls within the Historic Trend Line -Fairly Valued range.
Lincoln Electric Holdings Inc (LECO) has a current Price-to-Book (P/B) ratio of 9.49. Compared to its 3-year average P/B ratio of 8.97 , the current P/B ratio is approximately 5.87% higher. Relative to its 5-year average P/B ratio of 9.02, the current P/B ratio is about 5.22% higher. Lincoln Electric Holdings Inc (LECO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.42%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.22% , the current FCF yield is about -100.00% lower.
9.49
P/B
Median3y
8.97
Median5y
9.02
4.12
FCF Yield
Median3y
4.42
Median5y
4.22
Competitors Valuation Multiple
The average P/S ratio for LECO's competitors is 0.00, providing a benchmark for relative valuation. Lincoln Electric Holdings Inc Corp (LECO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 7.87%, 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 LECO increased by 30.18% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 10.24 to 11.56.
The secondary factor is the P/E Change, contributed 9.42%to the performance.
Overall, the performance of LECO in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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