ESAB (NYSE:ESAB) Valuation In Focus After Upbeat Q3 Earnings and Upgraded 2025 Sales Outlook

ESAB (NYSE:ESAB) reported third quarter earnings that surpassed expectations. Management highlighted a return to organic growth, early integration progress on the EWM acquisition, and an upgraded 2025 sales outlook.

See our latest analysis for ESAB.

Despite turbulence in broader markets, especially after a recent tech-driven rally prompted some profit-taking, ESAB’s share price has shown resilience, with a 5.2% gain over the last 90 days and momentum building around its organic growth story. Still, the one-year total shareholder return is down 12.6%, reminding investors that even in turnaround periods, short-term moves can diverge from longer-term trends. After a remarkable 167% three-year total shareholder return, ESAB’s current price of $114.39 signals that market sentiment may be shifting as management’s upgraded sales outlook and acquisition integration generate renewed interest.

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With analyst-beating earnings and upgraded guidance supporting the latest rally, the key question is whether ESAB is trading at a bargain or if the stronger outlook and future gains are already reflected in the stock price.

Most Popular Narrative: 19% Undervalued

With ESAB closing at $114.39 and the prevailing narrative setting fair value at $141.45, there is a notable gap between market price and projected worth, highlighting a bullish tilt among analysts. The stage is set for a potential rerating if growth drivers materialize as forecast.

ESAB is positioned to benefit from rising global infrastructure investment and energy project activity, particularly in high-growth markets like Asia-Pacific and the Middle East. Recent wins and acquisitions in these regions are supporting robust volume growth and higher EBITDA margins, indicating stronger future revenue and earnings potential as these long-term demand drivers persist.

Read the complete narrative.

Want the full story? The secret behind this sizable upside is not in headline numbers but in the long-term earnings flywheel being built. From new markets to relentless productivity gains and ambitious profit assumptions, the full narrative unpacks the fundamental bets driving such a punchy target. Dive in to find the quantitative projections powering this view and judge if the optimism is justified.

Result: Fair Value of $141.45 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent tariff-related uncertainty and volatility in emerging markets could challenge ESAB’s steady revenue growth and margin improvement as envisioned in bullish scenarios.

Find out about the key risks to this ESAB narrative.

Build Your Own ESAB Narrative

If you see things differently or want to run your own numbers, you can shape your own ESAB narrative in just a few minutes: Do it your way

A great starting point for your ESAB research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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