ESAB Corporation (ESAB) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-12.5%

$66.68

vs $76.21 price

Levered DCF

$39.64

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.62

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	30.03×	27.51×	25.63×	12.58×	12.76×	19.08×	17.36×
P/B	3.14×	4.1×	3.25×	2.09×	1.22×	1.2×	1.14×
P/S	2.4×	2.64×	1.88×	1.09×	1.24×	1.54×	1.34×
EV / EBITDA	16.38×	15.35×	12.24×	9.3×	7.56×	10.12×	8.29×
Gross margin	35.5%	37.9%	36.6%	34.1%	34.5%	35.0%	35.4%
Operating margin	17.3%	16.3%	14.6%	12.7%	12.6%	10.4%	11.4%
Net margin	8.0%	9.7%	7.4%	8.6%	9.7%	8.1%	7.7%
Current ratio	1.9×	1.82×	1.61×	1.64×	1.62×	1.75×	2.14×
Debt / equity	0.66×	0.66×	0.7×	0.97×	0.04×	0.04×	0.03×
Interest coverage	6.2×	6.9×	4.75×	8.67×	0×	0×	0×
Dividend yield	0.3%	0.2%	0.3%	0.2%	0.0%	0.0%	0.0%
Payout ratio	9.7%	6.4%	6.5%	2.7%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	10.5%	15.0%	12.8%	16.6%	9.6%	6.3%	6.6%
Return on invested capital	9.4%	10.3%	8.8%	8.0%	7.9%	5.3%	6.7%
Return on assets	4.8%	6.6%	5.4%	6.0%	6.8%	4.6%	5.0%
Free cash flow yield	3.1%	4.2%	5.4%	6.2%	7.2%	9.0%	6.8%
Earnings yield	3.3%	3.7%	3.9%	7.9%	7.8%	5.2%	5.8%
Enterprise value	$8.1B	$8.2B	$6.2B	$4.1B	$3.1B	$3B	$3B
Net debt / EBITDA	2.54×	1.72×	1.99×	2.85×	0.17×	0.16×	-0.08×
Cash conversion cycle (days)	82	68	69	74	75	82	88