ESAB Corporation

DB:O03 Stock Report

Market Cap: €6.9b

ESAB Valuation

Is O03 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of O03 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€111.18
Fair Value
2.0% undervalued intrinsic discount
11
Number of Analysts

Below Fair Value: O03 (€109) is trading below our estimate of fair value (€111.18)

Significantly Below Fair Value: O03 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for O03?

Key metric: As O03 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for O03. This is calculated by dividing O03's market cap by their current earnings.
What is O03's PE Ratio?
PE Ratio26.3x
EarningsUS$294.73m
Market CapUS$7.75b

Price to Earnings Ratio vs Peers

How does O03's PE Ratio compare to its peers?

The above table shows the PE ratio for O03 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.2x
G1A GEA Group
23.9x9.6%€9.6b
RAA RATIONAL
34.5x6.5%€8.7b
KRN Krones
15.2x13.0%€4.4b
GIL DMG MORI
15.1xn/a€3.7b
O03 ESAB
26.3x9.7%€7.8b

Price-To-Earnings vs Peers: O03 is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (22.2x).

Price to Earnings Ratio vs Industry

How does O03's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
O03 26.3xIndustry Avg. 18.8xNo. of Companies8PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: O03 is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the German Machinery industry average (18.8x).

Price to Earnings Ratio vs Fair Ratio

What is O03's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

O03 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.3x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: O03 is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst O03 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€109.00
€118.71
+8.9%
7.7%€132.53€106.02n/a11
May ’26€102.00
€117.64
+15.3%
9.4%€132.86€96.54n/a11
Apr ’26€106.00
€125.13
+18.0%
7.9%€139.04€111.23n/a11
Mar ’26€118.00
€127.02
+7.6%
7.7%€143.04€114.43n/a10
Feb ’26€118.00
€128.53
+8.9%
10.8%€153.58€101.75n/a10
Jan ’26€115.00
€126.83
+10.3%
10.8%€152.00€100.70n/a10
Dec ’25€120.00
€124.01
+3.3%
9.2%€138.69€100.69n/a9
Nov ’25€114.00
€117.56
+3.1%
11.2%€134.44€93.92n/a9
Oct ’25€94.00
€104.18
+10.8%
10.3%€116.75€86.22n/a9
Sep ’25€93.00
€103.84
+11.7%
9.8%€117.27€86.60n/a9
Aug ’25€92.50
€104.95
+13.5%
9.7%€121.62€85.04n/a9
Jul ’25€86.50
€108.55
+25.5%
10.5%€124.22€86.86n/a9
Jun ’25€95.50
€108.02
+13.1%
11.1%€123.45€86.32n/a8
May ’25€102.00
€107.91
+5.8%
11.8%€123.46€86.98€102.008
Apr ’25€101.00
€97.84
-3.1%
12.0%€115.01€78.21€106.009
Mar ’25€92.00
€94.95
+3.2%
12.1%€110.74€78.44€118.009
Feb ’25€78.50
€81.71
+4.1%
12.5%€97.87€62.78€118.0010
Jan ’25€78.00
€78.53
+0.7%
13.1%€95.66€61.95€115.0010
Dec ’24€72.00
€75.53
+4.9%
9.7%€86.10€63.64€120.0010
Nov ’24€61.00
€75.70
+24.1%
9.2%€86.11€64.35€114.0010
Oct ’24€66.00
€75.87
+14.9%
9.4%€86.62€64.73€94.0010
Sep ’24€65.50
€70.60
+7.8%
11.9%€83.67€56.09€93.009
Aug ’24€63.50
€68.63
+8.1%
10.4%€80.12€55.54€92.508
Jul ’24€60.00
€63.81
+6.4%
7.5%€70.00€56.18€86.507
Jun ’24€54.00
€63.81
+18.2%
7.5%€70.00€56.18€95.507
May ’24€53.50
€60.92
+13.9%
5.5%€66.37€57.28€102.006
AnalystConsensusTarget
Consensus Narrative from 11 Analysts
€114.54
Fair Value
4.8% undervalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/11 15:54
End of Day Share Price 2025/05/09 00:00
Earnings2025/04/04
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

ESAB Corporation is covered by 11 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mircea DobreBaird
Sherif El-SabbahyBofA Global Research
Thomas HayesCL King & Associates, Inc.