Lincoln Electric Holdings Valuation

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

LECO * (MX$3524) is trading above our estimate of [[fair value]] (MX$2854.6)

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

Valuation Score

0/6

Valuation Score 0/6

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 LECO * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LECO * (MX$3524) is trading above our estimate of fair value (MX$2854.6)

Significantly Below Fair Value: LECO * is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LECO *. This is calculated by dividing LECO *'s market cap by their current earnings.
What is LECO *'s PE Ratio?
PE Ratio	25.7x
Earnings	US$482.52m
Market Cap	US$12.05b

LECO * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.2x
Enterprise Value/EBITDA	16.6x
PEG Ratio	2.8x

Price to Earnings Ratio vs Peers

How does LECO *'s PE Ratio compare to its peers?

The above table shows the PE ratio for LECO * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	20.5x
GCARSO A1 Grupo Carso. de	18.7x	15.6%	Mex$265.6b
IDEAL B-1 Impulsora del Desarrollo y el Empleo en América Latina. de	13.6x	n/a	Mex$110.6b
ITT ITT	26.7x	8.2%	US$13.0b
WRT1V Wärtsilä Oyj Abp	23.2x	12.6%	€10.2b
LECO * Lincoln Electric Holdings	25.7x	9.2%	Mex$12.0b

Price-To-Earnings vs Peers: LECO * is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

How does LECO *'s PE Ratio compare vs other companies in the Global Machinery Industry?

31 Companies	Price / Earnings	Estimated Growth	Market Cap

31 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LECO * is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the Global Machinery industry average (21.6x).

Price to Earnings Ratio vs Fair Ratio

What is LECO *'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.

LECO * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	25.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LECO *'s Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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