ESAB Corporation

NYSE:ESAB Stock Report

Market Cap: US$7.8b

ESAB Valuation

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

Below Fair Value: ESAB ($123.88) is trading below our estimate of fair value ($124.1)

Significantly Below Fair Value: ESAB 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 ESAB?

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

The above table shows the Price to Earnings ratio for ESAB. This is calculated by dividing ESAB's market cap by their current earnings.
What is ESAB's PE Ratio?
PE Ratio27.6x
EarningsUS$271.66m
Market CapUS$7.83b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ESAB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.6x
MIDD Middleby
18.3x10.1%US$7.3b
DCI Donaldson Company
19.4x6.7%US$8.5b
WTS Watts Water Technologies
24.5x7.1%US$7.2b
FLS Flowserve
28.2x24.5%US$7.9b
ESAB ESAB
27.6x9.6%US$7.8b

Price-To-Earnings vs Peers: ESAB is expensive based on its Price-To-Earnings Ratio (27.6x) compared to the peer average (22.6x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AIRJ AirJoule Technologies
2.4xn/aUS$569.04m
CVGI Commercial Vehicle Group
2.6x-46.6%US$76.51m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
No more companies available in this PE range
ESAB 27.6xIndustry Avg. 23.6xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ESAB is expensive based on its Price-To-Earnings Ratio (27.6x) compared to the US Machinery industry average (23.6x).

Price to Earnings Ratio vs Fair Ratio

What is ESAB'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.

ESAB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.6x
Fair PE Ratio21x

Price-To-Earnings vs Fair Ratio: ESAB is expensive based on its Price-To-Earnings Ratio (27.6x) compared to the estimated Fair Price-To-Earnings Ratio (21x).

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 ESAB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$123.88
US$133.50
+7.8%
10.8%US$160.00US$106.00n/a10
Dec ’25US$129.08
US$130.56
+1.1%
9.2%US$146.00US$106.00n/a9
Nov ’25US$123.45
US$127.67
+3.4%
11.2%US$146.00US$102.00n/a9
Oct ’25US$104.98
US$116.00
+10.5%
10.3%US$130.00US$96.00n/a9
Sep ’25US$104.97
US$115.11
+9.7%
9.8%US$130.00US$96.00n/a9
Aug ’25US$98.24
US$114.78
+16.8%
9.7%US$133.00US$93.00n/a9
Jul ’25US$92.76
US$116.22
+25.3%
10.5%US$133.00US$93.00n/a9
Jun ’25US$102.82
US$116.38
+13.2%
11.1%US$133.00US$93.00n/a8
May ’25US$101.25
US$115.38
+14.0%
11.8%US$132.00US$93.00n/a8
Apr ’25US$110.53
US$106.33
-3.8%
12.0%US$125.00US$85.00n/a9
Mar ’25US$99.00
US$102.89
+3.9%
12.1%US$120.00US$85.00n/a9
Feb ’25US$87.31
US$88.50
+1.4%
12.5%US$106.00US$68.00n/a10
Jan ’25US$86.62
US$86.20
-0.5%
13.1%US$105.00US$68.00n/a10
Dec ’24US$79.08
US$80.70
+2.0%
9.7%US$92.00US$68.00US$129.0810
Nov ’24US$69.05
US$80.00
+15.9%
9.2%US$91.00US$68.00US$123.4510
Oct ’24US$70.22
US$79.70
+13.5%
9.4%US$91.00US$68.00US$104.9810
Sep ’24US$72.99
US$76.78
+5.2%
11.9%US$91.00US$61.00US$104.979
Aug ’24US$73.35
US$75.38
+2.8%
10.4%US$88.00US$61.00US$98.248
Jul ’24US$66.54
US$69.29
+4.1%
7.5%US$76.00US$61.00US$92.767
Jun ’24US$60.62
US$69.29
+14.3%
7.5%US$76.00US$61.00US$102.827
May ’24US$58.00
US$67.00
+15.5%
5.5%US$73.00US$63.00US$101.256
Apr ’24US$59.07
US$66.83
+13.1%
5.1%US$72.00US$63.00US$110.536
Mar ’24US$59.56
US$59.00
-0.9%
6.0%US$64.00US$55.00US$99.005
Feb ’24US$58.74
US$59.00
+0.4%
6.0%US$64.00US$55.00US$87.315
Jan ’24US$46.92
US$53.20
+13.4%
12.9%US$64.00US$44.00US$86.625
Dec ’23US$47.35
US$55.67
+17.6%
15.0%US$68.00US$44.00US$79.086

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 Analysis2024/12/18 23:48
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/27
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

ESAB Corporation is covered by 10 analysts. 8 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.