ESAB India Limited (ESABINDIA.NS) 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

+3.9%

₹5,665.77

vs ₹5,450.50 price

Levered DCF

₹5,721.32

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

—

Rating

B-

Overall 2 / 5

Ratios by fiscal year

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

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	36.9×	40.32×	50.64×	40.08×	55.17×	46.46×	23.41×	24.52×
P/B	17.76×	19.58×	26.97×	20.89×	19.04×	10.63×	4.95×	5.3×
P/S	5.06×	5.15×	6.66×	4.99×	5.19×	4.06×	2.41×	2.12×
EV / EBITDA	28×	27.73×	35.09×	27.78×	36.91×	29.15×	14.98×	16.44×
Gross margin	31.0%	30.8%	26.3%	38.4%	36.0%	34.7%	36.6%	34.6%
Operating margin	16.8%	16.7%	17.4%	16.4%	12.2%	10.7%	13.9%	10.5%
Net margin	13.7%	12.8%	13.2%	12.4%	9.4%	8.7%	10.3%	8.6%
Current ratio	2.14×	1.73×	1.75×	1.72×	1.81×	2.39×	3.15×	2.6×
Debt / equity	0.01×	0.01×	0.01×	0.02×	0.01×	0.01×	0.01×	0×
Interest coverage	122.12×	136.68×	431.84×	357.28×	179.62×	41.61×	113.04×	250.25×
Dividend yield	1.9%	2.2%	1.0%	2.2%	2.2%	5.0%	0.0%	9.9%
Payout ratio	68.5%	89.1%	49.1%	88.5%	118.7%	231.1%	0.0%	243.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	48.1%	48.6%	53.3%	52.1%	34.5%	22.9%	21.1%	21.6%
Return on invested capital	42.0%	45.8%	50.3%	49.1%	32.2%	20.0%	20.4%	17.7%
Return on assets	29.6%	27.1%	29.6%	28.6%	19.3%	15.3%	15.5%	15.2%
Free cash flow yield	2.0%	2.4%	1.4%	1.8%	1.6%	2.2%	2.2%	3.9%
Earnings yield	2.7%	2.5%	2.0%	2.5%	1.8%	2.2%	4.3%	4.1%
Enterprise value	₹75.6B	₹70B	₹82.2B	₹54.1B	₹46.3B	₹27.4B	₹16.6B	₹13.7B
Net debt / EBITDA	-0.26×	-0.3×	-0.14×	-0.15×	-0.15×	-0.16×	-0.13×	-0.52×
Cash conversion cycle (days)	38	35	47	36	31	45	39	44