LECO Valuation

Lincoln Electric Holdings Inc

Add to Watchlist

Advanced Chart

240.850

-1.11(-0.459%)1D

Overview
Forecast
Valuation
Earnings

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 23.42 is considered Fairly compared with the five-year average of 20.34. The fair price of Lincoln Electric Holdings Inc (LECO) is between 202.86 to 252.79 according to relative valuation methord.

Relative Value

Fair Zone

202.86-252.79

Current Price：241.96

Fair

23.31

Trailing

Forward

16.31

EV/EBITDA

Lincoln Electric Holdings Inc. (LECO) has a current EV/EBITDA of 16.31. The 5-year average EV/EBITDA is 14.23. The thresholds are as follows: Strongly Undervalued below 10.58, Undervalued between 10.58 and 12.41, Fairly Valued between 16.06 and 12.41, Overvalued between 16.06 and 17.88, and Strongly Overvalued above 17.88. The current Forward EV/EBITDA of 16.31 falls within the Overvalued range.

18.40

EV/EBIT

Lincoln Electric Holdings Inc. (LECO) has a current EV/EBIT of 18.40. The 5-year average EV/EBIT is 16.26. The thresholds are as follows: Strongly Undervalued below 11.91, Undervalued between 11.91 and 14.08, Fairly Valued between 18.44 and 14.08, Overvalued between 18.44 and 20.61, and Strongly Overvalued above 20.61. The current Forward EV/EBIT of 18.40 falls within the Historic Trend Line -Fairly Valued range.

3.05

Lincoln Electric Holdings Inc. (LECO) has a current PS of 3.05. The 5-year average PS is 2.48. The thresholds are as follows: Strongly Undervalued below 1.72, Undervalued between 1.72 and 2.10, Fairly Valued between 2.85 and 2.10, Overvalued between 2.85 and 3.23, and Strongly Overvalued above 3.23. The current Forward PS of 3.05 falls within the Overvalued range.

20.70

P/OCF

Lincoln Electric Holdings Inc. (LECO) has a current P/OCF of 20.70. The 5-year average P/OCF is 17.84. The thresholds are as follows: Strongly Undervalued below 11.95, Undervalued between 11.95 and 14.90, Fairly Valued between 20.78 and 14.90, Overvalued between 20.78 and 23.72, and Strongly Overvalued above 23.72. The current Forward P/OCF of 20.70 falls within the Historic Trend Line -Fairly Valued range.

24.59

P/FCF

Lincoln Electric Holdings Inc. (LECO) has a current P/FCF of 24.59. The 5-year average P/FCF is 20.92. The thresholds are as follows: Strongly Undervalued below 15.20, Undervalued between 15.20 and 18.06, Fairly Valued between 23.77 and 18.06, Overvalued between 23.77 and 26.63, and Strongly Overvalued above 26.63. The current Forward P/FCF of 24.59 falls within the Overvalued range.

Lincoln Electric Holdings Inc (LECO) has a current Price-to-Book (P/B) ratio of 9.68. Compared to its 3-year average P/B ratio of 8.91 , the current P/B ratio is approximately 8.60% higher. Relative to its 5-year average P/B ratio of 8.99, the current P/B ratio is about 7.62% higher. Lincoln Electric Holdings Inc (LECO) has a Forward Free Cash Flow (FCF) yield of approximately 3.77%. Compared to its 3-year average FCF yield of 4.40%, the current FCF yield is approximately -14.24% lower. Relative to its 5-year average FCF yield of 4.26% , the current FCF yield is about -11.53% lower.

9.63

P/B

Median3y

8.91

Median5y

8.99

3.78

FCF Yield

Median3y

4.40

Median5y

4.26

Competitors Valuation Multiple

The average P/S ratio for LECO's competitors is 4.11, providing a benchmark for relative valuation. Lincoln Electric Holdings Inc Corp (LECO) exhibits a P/S ratio of 3.05, which is -25.86% above the industry average. Given its robust revenue growth of 6.56%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

LECO.O

Lincoln Electric Holdings Inc

Performance Decomposition

Market capitalization of LECO increased by 26.47% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.95 to 13.17.

The secondary factor is the Revenue Growth, contributed 6.56%to the performance.

Overall, the performance of LECO in the past 1 year is driven by Margin Expansion. Which is more sustainable.

6.56%

1.02B → 1.09B

Revenue Growth

32.36%

9.95 → 13.17

Margin Expansion

-12.45%

30.91 → 27.06

P/E Change

26.47%