ESCO Technologies Inc. (ESE) 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

-64.7%

$85.33

vs $241.89 price

Levered DCF

$115.46

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

6.36

Safe zone

Rating

A-

Overall 4 / 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	FY2018
P/E	18.28×	32.57×	29.09×	23.17×	31.56×	91.55×	25.5×	19.01×
P/B	3.55×	2.68×	2.38×	1.82×	1.97×	2.18×	2.5×	2.31×
P/S	4.99×	3.61×	3.15×	2.22×	2.8×	2.87×	2.84×	2.56×
EV / EBITDA	22.82×	17.2×	16.72×	12.43×	17.05×	25.12×	16.12×	15.71×
Gross margin	42.1%	42.3%	41.3%	38.7%	37.8%	37.3%	39.7%	38.6%
Operating margin	15.8%	16.1%	14.1%	12.9%	11.5%	0.0%	14.7%	13.7%
Net margin	27.3%	11.1%	10.8%	9.6%	8.9%	13.6%	11.2%	13.5%
Current ratio	1.35×	1.91×	1.85×	1.8×	1.7×	1.74×	1.97×	1.97×
Debt / equity	0.15×	0.13×	0.12×	0.17×	0.18×	0.08×	0.35×	0.29×
Interest coverage	9.89×	9.68×	13.76×	22.88×	36.38×	0×	13.2×	10.64×
Dividend yield	0.2%	0.2%	0.3%	0.4%	0.4%	0.4%	0.4%	0.5%
Payout ratio	2.8%	8.1%	8.9%	10.0%	13.1%	8.4%	10.2%	9.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	19.4%	8.2%	8.2%	7.9%	6.2%	10.4%	9.8%	12.1%
Return on invested capital	6.9%	7.7%	6.7%	6.3%	4.9%	0.0%	6.8%	9.0%
Return on assets	12.4%	5.5%	5.5%	5.0%	4.0%	7.3%	5.5%	7.3%
Free cash flow yield	3.5%	2.6%	1.7%	4.7%	4.4%	2.0%	3.5%	3.9%
Earnings yield	5.5%	3.1%	3.4%	4.3%	3.2%	4.7%	3.9%	5.3%
Enterprise value	$5.6B	$3.4B	$2.8B	$2B	$2.1B	$2.1B	$2.3B	$1.9B
Net debt / EBITDA	0.53×	0.46×	0.58×	0.5×	1.01×	0.31×	1.58×	1.53×
Cash conversion cycle (days)	185	188	214	181	197	187	189	179