Lincoln Electric Holdings, Inc. (LECO) 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

-56.0%

$126.95

vs $288.39 price

Levered DCF

$183.37

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

7.79

Safe zone

Rating

B+

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	FY2018
P/E	25.52×	22.78×	22.87×	17.75×	29.93×	33.6×	20.45×	17.84×
P/B	9.03×	8×	9.53×	8.11×	9.57×	8.78×	7.32×	5.76×
P/S	3.14×	2.65×	2.98×	2.23×	2.56×	2.61×	2×	1.69×
EV / EBITDA	17.08×	14.44×	16.77×	13.33×	13.18×	18.13×	14.12×	10.05×
Gross margin	36.3%	36.9%	35.3%	34.1%	33.0%	32.8%	33.5%	34.0%
Operating margin	16.9%	15.9%	17.1%	16.3%	14.3%	10.6%	12.4%	12.4%
Net margin	12.3%	11.6%	13.0%	12.6%	8.6%	7.8%	9.8%	9.5%
Current ratio	1.82×	1.87×	2.24×	1.83×	1.71×	2.02×	1.91×	2.3×
Debt / equity	0.88×	0.99×	0.89×	1.21×	0.95×	0.97×	0.98×	0×
Interest coverage	11.69×	14.88×	16.18×	20.76×	20.78×	12.84×	15.84×	21.38×
Dividend yield	1.3%	1.5%	1.2%	1.6%	1.5%	1.7%	2.0%	2.0%
Payout ratio	32.3%	34.8%	27.1%	27.7%	44.1%	57.3%	40.2%	35.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	35.4%	35.1%	41.7%	45.7%	32.0%	26.1%	35.8%	32.3%
Return on invested capital	18.6%	18.1%	21.6%	20.1%	20.7%	12.4%	15.9%	17.0%
Return on assets	13.8%	13.2%	16.1%	14.8%	10.7%	8.9%	12.4%	12.2%
Free cash flow yield	4.0%	4.5%	4.6%	3.7%	3.7%	4.2%	5.6%	5.0%
Earnings yield	3.9%	4.4%	4.4%	5.6%	3.3%	3.0%	4.9%	5.6%
Enterprise value	$14.3B	$11.6B	$13.2B	$9.4B	$8.9B	$7.4B	$6.6B	$4.8B
Net debt / EBITDA	1.18×	1.17×	0.97×	1.49×	0.93×	1.23×	1.29×	-0.76×
Cash conversion cycle (days)	83	80	82	102	87	80	68	65