Lincoln Electric Holdings, Inc.

NasdaqGS:LECO Stock Report

Market Cap: US$12.1b

Lincoln Electric Holdings Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ($210.53) is trading below our estimate of fair value ($221.63)

Significantly Below Fair Value: LECO 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 LECO?

Other financial metrics that can be useful for relative valuation.

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/Revenue3.2x
Enterprise Value/EBITDA16.7x
PEG Ratio2.7x

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.6x
ITT ITT
25.9x8.2%US$12.5b
NDSN Nordson
31.3x11.2%US$14.7b
GGG Graco
30.7x8.8%US$14.9b
DCI Donaldson Company
22.4x6.5%US$9.3b
LECO Lincoln Electric Holdings
24.6x9.1%US$12.1b

Price-To-Earnings vs Peers: LECO is good value based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (27.6x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.7%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.7%
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No more companies

Price-To-Earnings vs Industry: LECO is good value based on its Price-To-Earnings Ratio (24.6x) compared to the US Machinery industry average (24.7x).

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 Ratio24.6x
Fair PE Ratio21.8x

Price-To-Earnings vs Fair Ratio: LECO is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).

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 LECO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$210.53
US$214.78
+2.0%
12.5%US$255.00US$174.00n/a9
Nov ’25US$201.75
US$215.33
+6.7%
12.7%US$255.00US$174.00n/a9
Oct ’25US$189.69
US$216.33
+14.0%
11.9%US$255.00US$184.00n/a9
Sep ’25US$193.61
US$223.11
+15.2%
10.7%US$255.00US$184.00n/a9
Aug ’25US$198.79
US$224.22
+12.8%
11.3%US$265.00US$184.00n/a9
Jul ’25US$184.49
US$222.11
+20.4%
13.0%US$265.00US$182.00n/a9
Jun ’25US$196.36
US$227.11
+15.7%
15.3%US$285.00US$182.00n/a9
May ’25US$219.33
US$239.70
+9.3%
16.3%US$285.00US$185.00n/a10
Apr ’25US$252.64
US$237.73
-5.9%
16.2%US$285.00US$185.00n/a11
Mar ’25US$254.19
US$237.73
-6.5%
16.2%US$285.00US$185.00n/a11
Feb ’25US$225.80
US$208.45
-7.7%
13.5%US$250.00US$165.00n/a11
Jan ’25US$217.46
US$202.90
-6.7%
10.0%US$232.00US$165.00n/a10
Dec ’24US$201.77
US$201.30
-0.2%
10.2%US$232.00US$165.00n/a10
Nov ’24US$176.26
US$203.20
+15.3%
11.0%US$240.00US$165.00US$201.7510
Oct ’24US$181.79
US$207.78
+14.3%
11.9%US$240.00US$170.00US$189.699
Sep ’24US$194.20
US$212.50
+9.4%
10.4%US$240.00US$171.00US$193.618
Aug ’24US$200.14
US$212.29
+6.1%
11.2%US$240.00US$171.00US$198.797
Jul ’24US$198.63
US$189.63
-4.5%
10.5%US$232.00US$159.00US$184.498
Jun ’24US$175.25
US$180.25
+2.9%
8.2%US$200.00US$157.00US$196.368
May ’24US$170.62
US$178.25
+4.5%
7.2%US$195.00US$157.00US$219.338
Apr ’24US$169.10
US$170.88
+1.0%
10.0%US$195.00US$145.00US$252.648
Mar ’24US$169.20
US$169.63
+0.3%
9.2%US$190.00US$145.00US$254.198
Feb ’24US$169.57
US$162.13
-4.4%
8.4%US$185.00US$145.00US$225.808
Jan ’24US$144.49
US$155.63
+7.7%
6.0%US$170.00US$145.00US$217.468
Dec ’23US$148.17
US$152.75
+3.1%
7.6%US$170.00US$137.00US$201.778
Nov ’23US$142.90
US$152.38
+6.6%
7.4%US$170.00US$137.00US$176.268

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

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