Lincoln Electric Holdings, Inc.

NasdaqGS:LECO Stock Report

Market Cap: US$10.7b

Lincoln Electric Holdings Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($189.75) is trading below our estimate of fair value ($221.34)

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?

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 Ratio22.2x
EarningsUS$482.52m
Market CapUS$10.71b

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 Average24.4x
ITT ITT
24.2x7.1%US$11.7b
NDSN Nordson
25.6x9.1%US$12.0b
FLS Flowserve
28.5x25.2%US$7.6b
DCI Donaldson Company
19.3x6.7%US$8.1b
LECO Lincoln Electric Holdings
22.2x10.7%US$10.7b

Price-To-Earnings vs Peers: LECO is good value based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (24.4x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AIRJ AirJoule Technologies
2.3xn/aUS$530.51m
CVGI Commercial Vehicle Group
2.5x-46.6%US$69.23m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
ZEVY Lightning eMotors
n/an/aUS$6.00
No more companies available in this PE range
LECO 22.2xIndustry Avg. 22.6xNo. of Companies9PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LECO is good value based on its Price-To-Earnings Ratio (22.2x) compared to the US Machinery industry average (22.6x).

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 Ratio22.2x
Fair PE Ratio22.3x

Price-To-Earnings vs Fair Ratio: LECO is good value based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (22.3x).

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 LECO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$189.75
US$222.67
+17.3%
12.0%US$255.00US$174.00n/a9
Dec ’25US$218.48
US$217.00
-0.7%
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$165.00US$218.4810
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

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 Analysis2024/12/23 04:43
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Lincoln Electric Holdings, Inc. is covered by 29 analysts. 10 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
Adam SeidenBarclays
Walter LiptakBarrington Research Associates, Inc.