Lincoln Electric Holdings, Inc.

LECO

IndustrialsManufacturing - Tools & AccessoriesNASDAQ

$271.11

Market Cap: $14.85B

Lincoln Electric Holdings, Inc. (LECO) Valuation Summary

Updated May 9, 2026 08:07

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$113.31 – $358.84	$173.00	-36.2%
Growth Exit 10Y	$144.75 – $442.13	$217.71	-19.7%
EBITDA Exit 5Y	$176.24 – $338.76	$250.89	-7.5%
EBITDA Exit 10Y	$183.23 – $373.42	$264.80	-2.3%
▸ Trading Multiples
P/E	$191.25 – $315.26	$258.96	-4.5%
EV/EBITDA	$162.31 – $279.69	$213.90	-21.1%
EV/Revenue	$72.34 – $364.41	$188.44	-30.5%
▸ PEG
PEG Fair Value	$187.89 – $187.89	$187.89	-30.7%
▸ Earnings Power Value
Earnings Power Value	$87.78 – $134.17	$106.79	-60.6%
▸ Dividend Discount
Dividend Discount	$53.11 – $124.97	$76.99	-71.6%

Valuation History

DCF Analysis

Fair Value

$173.00

Market Price

$271.11

Upside / Downside

-36.2%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Lincoln Electric Holdings, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 7.9% to 13.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 50, DPO 49, DIO 86). At a 8.3% WACC with mid-year discounting, the terminal value (76% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $173.00 per share, suggesting LECO is overvalued by 36.2% at the current price of $271.11.

FCFF Present Value Calculation

WACC

8.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	744	783	820	880	1,002	1,027
(−) Net Interest	46	48	51	54	62	64
(+) D&A	94	103	112	117	120	123
EBITDA	884	935	983	1,052	1,183	1,213

(−) Tax	149	157	165	177	201	206
(−) CapEx	109	115	120	129	147	150
(−) ΔWC	118	48	46	75	151	155
Free Cash Flow (FCFF)	507	615	652	672	685	702

Terminal Value						12,075
WACC / Discount Rate	8.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	487	545	534	508	478	8,099

Enterprise Value	10,652
Projection Period	2,553	24.0%
Terminal Value	8,099	76.0%

(−) Current Net Debt	985

Equity Value	9,667
(/) Outstanding Shares	56

Fair Price	$173.00

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.3%	$222	$245	$273	$309	$359
7.3%	$181	$195	$212	$234	$261
8.3%	$152	$162	$173	$187	$203
9.3%	$130	$137	$145	$155	$165
10.3%	$113	$119	$124	$131	$139

Current price: $271.11. Green = undervalued, Red = overvalued.

Fair Value

$217.71

Market Price

$271.11

Upside / Downside

-19.7%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Lincoln Electric Holdings, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 7.9% to 3.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 50, DPO 49, DIO 86). At a 8.3% WACC with mid-year discounting, the terminal value (62% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $217.71 per share, suggesting LECO is overvalued by 19.7% at the current price of $271.11.

FCFF Present Value Calculation

WACC

8.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	744	783	820	880	1,002	1,065	1,125	1,180	1,231	1,276	1,308
(−) Net Interest	46	48	51	54	62	66	70	73	76	79	81
(+) D&A	94	103	112	117	120	124	133	143	154	164	168
EBITDA	884	935	983	1,052	1,183	1,254	1,327	1,397	1,461	1,519	1,557

(−) Tax	149	157	165	177	201	214	226	237	247	256	263
(−) CapEx	109	115	120	129	147	156	165	173	180	187	191
(−) ΔWC	118	48	46	75	151	78	75	70	63	56	57
Free Cash Flow (FCFF)	507	615	652	672	685	806	862	917	971	1,020	1,046

Terminal Value											17,984
WACC / Discount Rate	8.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	487	545	534	508	478	520	513	504	492	478	8,090

Enterprise Value	13,150
Projection Period	5,060	38.5%
Terminal Value	8,090	61.5%

(−) Current Net Debt	985

Equity Value	12,165
(/) Outstanding Shares	56

Fair Price	$217.71

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.3%	$292	$317	$348	$388	$442
7.3%	$236	$251	$269	$291	$319
8.3%	$196	$206	$218	$231	$248
9.3%	$167	$174	$182	$191	$201
10.3%	$145	$150	$155	$161	$168

Current price: $271.11. Green = undervalued, Red = overvalued.

Fair Value

$250.84

Market Price

$271.11

Upside / Downside

-7.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Lincoln Electric Holdings, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 7.9% to 13.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 50, DPO 49, DIO 86). At a 8.3% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.3x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $250.89 per share, suggesting LECO is fairly valued by 7.5% at the current price of $271.11.

FCFF Present Value Calculation

WACC

8.32%

3% – 20%

EV/EBITDA Exit Multiple

15.30x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	744	783	820	880	1,002	1,027
(−) Net Interest	46	48	51	54	62	64
(+) D&A	94	103	112	117	120	123
EBITDA	884	935	983	1,052	1,183	1,213

(−) Tax	149	157	165	177	201	—
(−) CapEx	109	115	120	129	147	—
(−) ΔWC	118	48	46	75	151	—
Free Cash Flow (FCF)	507	615	652	672	685	—

Peers' EBITDA Multiple						15.3x
Terminal Value						18,559
WACC / Discount Rate	8.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	487	545	534	508	478	12,448

Enterprise Value	15,001
Projection Period	2,553	17.0%
Terminal Value	12,448	83.0%

(−) Current Net Debt	985
Equity Value	14,016
(÷) Outstanding Shares	56M
Fair Price	$251	-7.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.3x	13.3x	15.3x	17.3x	19.3x
6.3%	$211	$243	$275	$307	$339
7.3%	$202	$232	$263	$293	$324
8.3%	$193	$222	$251	$280	$309
9.3%	$184	$212	$240	$268	$295
10.3%	$176	$203	$229	$256	$283

Current price: $271.11. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$264.76

Market Price

$271.11

Upside / Downside

-2.3%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Lincoln Electric Holdings, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 7.9% to 3.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 50, DPO 49, DIO 86). At a 8.3% WACC with mid-year discounting, the terminal value (68% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.3x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $264.80 per share, suggesting LECO is fairly valued by 2.3% at the current price of $271.11.

FCFF Present Value Calculation

WACC

8.32%

3% – 20%

EV/EBITDA Exit Multiple

15.30x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	744	783	820	880	1,002	1,065	1,125	1,180	1,231	1,276	1,308
(−) Net Interest	46	48	51	54	62	66	70	73	76	79	81
(+) D&A	94	103	112	117	120	124	133	143	154	164	168
EBITDA	884	935	983	1,052	1,183	1,254	1,327	1,397	1,461	1,519	1,557

(−) Tax	149	157	165	177	201	214	226	237	247	256	—
(−) CapEx	109	115	120	129	147	156	165	173	180	187	—
(−) ΔWC	118	48	46	75	151	78	75	70	63	56	—
Free Cash Flow (FCF)	507	615	652	672	685	806	862	917	971	1,020	—

Peers' EBITDA Multiple											15.3x
Terminal Value											23,827
WACC / Discount Rate	8.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	487	545	534	508	478	520	513	504	492	478	10,719

Enterprise Value	15,779
Projection Period	5,060	32.1%
Terminal Value	10,719	67.9%

(−) Current Net Debt	985
Equity Value	14,793
(÷) Outstanding Shares	56M
Fair Price	$265	-2.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.3x	13.3x	15.3x	17.3x	19.3x
6.3%	$253	$283	$313	$343	$373
7.3%	$233	$260	$288	$315	$343
8.3%	$215	$240	$265	$290	$315
9.3%	$198	$221	$244	$267	$290
10.3%	$183	$204	$225	$246	$267

Current price: $271.11. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$258.96

Market Price

$271.11

Upside / Downside

-4.5%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Lincoln Electric Holdings, Inc. (LECO) has a fair value of $258.96 based on 10 comparable companies in the Manufacturing - Tools & Accessories industry.

P/E Valuation — Manufacturing - Tools & Accessories

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Lincoln Electric Holdings, Inc.LECO	15,148	29.1x	24.7x
ATI Inc.ATI	21,616	55.6x	36.3x
RBC Bearings IncorporatedRBC	19,336	79.4x	72.1x
WESCO International, Inc.WCC	17,090	26.9x	26.2x
IDEX CorporationIEX	16,055	33.8x	27.5x
Nordson CorporationNDSN	15,816	33.3x	29.7x
Mueller Industries, Inc.MLI	15,572	20.5x	19.7x
Avery Dennison CorporationAVY	12,577	18.6x	17.3x
Stanley Black & Decker, Inc.SWK	12,468	30.3x	17.6x
Huntington Ingalls Industries, Inc.HII	12,463	20.6x	18.2x
Builders FirstSource, Inc.BLDR	8,325	19.9x	11.0x
Industry Median		28.6x	22.9x
(*) Profit after tax		521	613
Equity Value		14,875	14,065
(/) Outstanding shares		56	56
Fair Price		$266	$252

Selected Fair Value (avg of trailing + forward)

$258.96

-4.5%

Fair Value

$213.90

Market Price

$271.11

Upside / Downside

-21.1%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Lincoln Electric Holdings, Inc. (LECO) has a fair value of $213.90 based on 10 comparable companies in the Manufacturing - Tools & Accessories industry.

EV/EBITDA Valuation — Manufacturing - Tools & Accessories

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Lincoln Electric Holdings, Inc.LECO	15,148	19.8x	18.4x
ATI Inc.ATI	21,616	28.5x	26.2x
RBC Bearings IncorporatedRBC	19,336	41.3x	43.4x
WESCO International, Inc.WCC	17,090	16.4x	16.5x
IDEX CorporationIEX	16,055	19.1x	19.2x
Nordson CorporationNDSN	15,816	20.4x	21.3x
Mueller Industries, Inc.MLI	15,572	13.1x	13.0x
Avery Dennison CorporationAVY	12,577	12.4x	12.5x
Stanley Black & Decker, Inc.SWK	12,468	14.2x	14.1x
Huntington Ingalls Industries, Inc.HII	12,463	12.2x	11.8x
Builders FirstSource, Inc.BLDR	8,325	10.0x	9.9x
Industry Median		15.3x	15.3x
(*) EBITDA		813	878
= Enterprise Value		12,449	13,424
(-) Net Debt		985	985
Equity Value		11,464	12,439
(/) Outstanding shares		56	56
Fair Price		$205	$223

Selected Fair Value (avg of trailing + forward)

$213.90

-21.1%

Fair Value

$188.44

Market Price

$271.11

Upside / Downside

-30.5%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Lincoln Electric Holdings, Inc. (LECO) has a fair value of $188.44 based on 10 comparable companies in the Manufacturing - Tools & Accessories industry.

EV/Revenue Valuation — Manufacturing - Tools & Accessories

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Lincoln Electric Holdings, Inc.LECO	15,148	3.8x	3.5x
ATI Inc.ATI	21,616	5.0x	4.6x
RBC Bearings IncorporatedRBC	19,336	12.4x	13.0x
WESCO International, Inc.WCC	17,090	1.0x	1.0x
IDEX CorporationIEX	16,055	5.0x	5.0x
Nordson CorporationNDSN	15,816	6.4x	6.7x
Mueller Industries, Inc.MLI	15,572	3.4x	3.4x
Avery Dennison CorporationAVY	12,577	1.8x	1.8x
Stanley Black & Decker, Inc.SWK	12,468	1.2x	1.2x
Huntington Ingalls Industries, Inc.HII	12,463	1.2x	1.1x
Builders FirstSource, Inc.BLDR	8,325	0.9x	0.9x
Industry Median		2.6x	2.6x
(*) Revenue		4,231	4,565
= Enterprise Value		11,062	11,966
(-) Net Debt		985	985
Equity Value		10,077	10,981
(/) Outstanding shares		56	56
Fair Price		$180	$197

Selected Fair Value (avg of trailing + forward)

$188.44

-30.5%

PEG Fair Value

Fair Value

$187.89

Market Price

$271.11

Upside / Downside

-30.7%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 17.1% plus 1.1% dividend yield, the company has a fair value of $187.89 based on NTM EPS (FY2026) of $10.97. The current PEG ratio is 1.44.

PEG Ratio

1.44Fair Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 24.7 ÷ (16.0% + 1.1%) = 1.44

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	16.0%
Dividend Yield	+1.1%
Adjusted Growth (clamped 8–25%)	17.1%
Fair P/E	17.1x
NTM EPS (FY2026)	$10.97
Fair Value	$187.89

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$9.32	—	—
FY2026E	$10.97	+17.7%	8
FY2027E	$12.06	+9.9%	8
FY2028E	$13.05	+8.3%	6
FY2029E	$15.20	+16.5%	5
FY2030E	$19.57	+28.8%	3

5Y Forward EPS CAGR: 16.0%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$276.6M	$4.60	—
FY2022	$472.2M	$8.04	+74.8%
FY2023	$545.2M	$9.37	+16.5%
FY2024	$466.1M	$8.15	-13.0%
FY2025	$520.5M	$9.32	+14.4%

4Y Historical EPS CAGR: 19.3%

Earnings Power Value

Fair Value

$106.79

Market Price

$271.11

Upside / Downside

-60.6%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 8.3% and normalized earnings of $578.1M, the company has a fair value of $106.79 per share. The EPV range is $87.78 – $134.17 based on WACC sensitivity (6.8% – 9.8%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	578	578	578
(/) WACC	9.8%	8.3%	6.8%
Enterprise Value	5,890	6,952	8,482
(-) Net debt	985	985	985
Equity Value	4,905	5,967	7,497
(/) Outstanding shares	56	56	56
Fair Price	$87.78	$106.79	$134.17

Dividend Discount Model

Fair Value

$76.99

Market Price

$271.11

Upside / Downside

-71.6%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.7% and projected dividend growth of 13.0%, the fair value is $76.99 per share. The DDM range is $53.11 – $124.97 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$3.01

Dividend Yield

1.13%

Payout Ratio

32.3%

Dividend Coverage

3.09x

FCF Payout Ratio31.5%

DPS CAGR (4Y)10.4%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$3.01	32.3%	+6.2%
2024	$2.83	34.8%	+11.5%
2023	$2.54	27.1%	+14.3%
2022	$2.23	27.7%	+9.7%
2021	$2.03	44.1%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$3.40	13.0%	0.9198	$3.13
2027	$3.84	13.0%	0.8460	$3.25
2028	$4.34	13.0%	0.7781	$3.38
2029	$4.90	13.0%	0.7157	$3.51
2030	$5.54	13.0%	0.6582	$3.65
Terminal Value	$5.68 DPS	2.5%		$60.07

PV of Projected Dividends$16.91

PV of Terminal Value$60.07

Fair Value per Share$76.99

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	11.0%	12.0%	13.0%	14.0%	15.0%
6.7%	$106	$110	$115	$120	$125
7.7%	$85	$89	$92	$96	$100
8.7%	$71	$74	$77	$80	$83
9.7%	$61	$63	$66	$69	$71
10.7%	$53	$55	$58	$60	$62

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Lincoln Electric Holdings, Inc. (LECO) Valuation Summary

Updated May 9, 2026 08:07

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$113.31 – $358.84	$173.00	-36.2%
Growth Exit 10Y	$144.75 – $442.13	$217.71	-19.7%
EBITDA Exit 5Y	$176.24 – $338.76	$250.89	-7.5%
EBITDA Exit 10Y	$183.23 – $373.42	$264.80	-2.3%
▸ Trading Multiples
P/E	$191.25 – $315.26	$258.96	-4.5%
EV/EBITDA	$162.31 – $279.69	$213.90	-21.1%
EV/Revenue	$72.34 – $364.41	$188.44	-30.5%
▸ PEG
PEG Fair Value	$187.89 – $187.89	$187.89	-30.7%
▸ Earnings Power Value
Earnings Power Value	$87.78 – $134.17	$106.79	-60.6%
▸ Dividend Discount
Dividend Discount	$53.11 – $124.97	$76.99	-71.6%

Valuation History

DCF Analysis

Fair Value

$173.00

Market Price

$271.11

Upside / Downside

-36.2%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

8.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	744	783	820	880	1,002	1,027
(−) Net Interest	46	48	51	54	62	64
(+) D&A	94	103	112	117	120	123
EBITDA	884	935	983	1,052	1,183	1,213

(−) Tax	149	157	165	177	201	206
(−) CapEx	109	115	120	129	147	150
(−) ΔWC	118	48	46	75	151	155
Free Cash Flow (FCFF)	507	615	652	672	685	702

Terminal Value						12,075
WACC / Discount Rate	8.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	487	545	534	508	478	8,099

Enterprise Value	10,652
Projection Period	2,553	24.0%
Terminal Value	8,099	76.0%

(−) Current Net Debt	985

Equity Value	9,667
(/) Outstanding Shares	56

Fair Price	$173.00

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.3%	$222	$245	$273	$309	$359
7.3%	$181	$195	$212	$234	$261
8.3%	$152	$162	$173	$187	$203
9.3%	$130	$137	$145	$155	$165
10.3%	$113	$119	$124	$131	$139

Current price: $271.11. Green = undervalued, Red = overvalued.

Fair Value

$217.71

Market Price

$271.11

Upside / Downside

-19.7%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

8.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	744	783	820	880	1,002	1,065	1,125	1,180	1,231	1,276	1,308
(−) Net Interest	46	48	51	54	62	66	70	73	76	79	81
(+) D&A	94	103	112	117	120	124	133	143	154	164	168
EBITDA	884	935	983	1,052	1,183	1,254	1,327	1,397	1,461	1,519	1,557

(−) Tax	149	157	165	177	201	214	226	237	247	256	263
(−) CapEx	109	115	120	129	147	156	165	173	180	187	191
(−) ΔWC	118	48	46	75	151	78	75	70	63	56	57
Free Cash Flow (FCFF)	507	615	652	672	685	806	862	917	971	1,020	1,046

Terminal Value											17,984
WACC / Discount Rate	8.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	487	545	534	508	478	520	513	504	492	478	8,090

Enterprise Value	13,150
Projection Period	5,060	38.5%
Terminal Value	8,090	61.5%

(−) Current Net Debt	985

Equity Value	12,165
(/) Outstanding Shares	56

Fair Price	$217.71

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.3%	$292	$317	$348	$388	$442
7.3%	$236	$251	$269	$291	$319
8.3%	$196	$206	$218	$231	$248
9.3%	$167	$174	$182	$191	$201
10.3%	$145	$150	$155	$161	$168

Current price: $271.11. Green = undervalued, Red = overvalued.

Fair Value

$250.84

Market Price

$271.11

Upside / Downside

-7.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Lincoln Electric Holdings, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 7.9% to 13.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 50, DPO 49, DIO 86). At a 8.3% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.3x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $250.89 per share, suggesting LECO is fairly valued by 7.5% at the current price of $271.11.

FCFF Present Value Calculation

WACC

8.32%

3% – 20%

EV/EBITDA Exit Multiple

15.30x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	744	783	820	880	1,002	1,027
(−) Net Interest	46	48	51	54	62	64
(+) D&A	94	103	112	117	120	123
EBITDA	884	935	983	1,052	1,183	1,213

(−) Tax	149	157	165	177	201	—
(−) CapEx	109	115	120	129	147	—
(−) ΔWC	118	48	46	75	151	—
Free Cash Flow (FCF)	507	615	652	672	685	—

Peers' EBITDA Multiple						15.3x
Terminal Value						18,559
WACC / Discount Rate	8.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	487	545	534	508	478	12,448

Enterprise Value	15,001
Projection Period	2,553	17.0%
Terminal Value	12,448	83.0%

(−) Current Net Debt	985
Equity Value	14,016
(÷) Outstanding Shares	56M
Fair Price	$251	-7.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.3x	13.3x	15.3x	17.3x	19.3x
6.3%	$211	$243	$275	$307	$339
7.3%	$202	$232	$263	$293	$324
8.3%	$193	$222	$251	$280	$309
9.3%	$184	$212	$240	$268	$295
10.3%	$176	$203	$229	$256	$283

Current price: $271.11. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$264.76

Market Price

$271.11

Upside / Downside

-2.3%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Lincoln Electric Holdings, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 7.9% to 3.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 50, DPO 49, DIO 86). At a 8.3% WACC with mid-year discounting, the terminal value (68% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.3x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $264.80 per share, suggesting LECO is fairly valued by 2.3% at the current price of $271.11.

FCFF Present Value Calculation

WACC

8.32%

3% – 20%

EV/EBITDA Exit Multiple

15.30x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	744	783	820	880	1,002	1,065	1,125	1,180	1,231	1,276	1,308
(−) Net Interest	46	48	51	54	62	66	70	73	76	79	81
(+) D&A	94	103	112	117	120	124	133	143	154	164	168
EBITDA	884	935	983	1,052	1,183	1,254	1,327	1,397	1,461	1,519	1,557

(−) Tax	149	157	165	177	201	214	226	237	247	256	—
(−) CapEx	109	115	120	129	147	156	165	173	180	187	—
(−) ΔWC	118	48	46	75	151	78	75	70	63	56	—
Free Cash Flow (FCF)	507	615	652	672	685	806	862	917	971	1,020	—

Peers' EBITDA Multiple											15.3x
Terminal Value											23,827
WACC / Discount Rate	8.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	487	545	534	508	478	520	513	504	492	478	10,719

Enterprise Value	15,779
Projection Period	5,060	32.1%
Terminal Value	10,719	67.9%

(−) Current Net Debt	985
Equity Value	14,793
(÷) Outstanding Shares	56M
Fair Price	$265	-2.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.3x	13.3x	15.3x	17.3x	19.3x
6.3%	$253	$283	$313	$343	$373
7.3%	$233	$260	$288	$315	$343
8.3%	$215	$240	$265	$290	$315
9.3%	$198	$221	$244	$267	$290
10.3%	$183	$204	$225	$246	$267

Current price: $271.11. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$258.96

Market Price

$271.11

Upside / Downside

-4.5%

Verdict

Overvalued

P/E Valuation — Manufacturing - Tools & Accessories

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Lincoln Electric Holdings, Inc.LECO	15,148	29.1x	24.7x
ATI Inc.ATI	21,616	55.6x	36.3x
RBC Bearings IncorporatedRBC	19,336	79.4x	72.1x
WESCO International, Inc.WCC	17,090	26.9x	26.2x
IDEX CorporationIEX	16,055	33.8x	27.5x
Nordson CorporationNDSN	15,816	33.3x	29.7x
Mueller Industries, Inc.MLI	15,572	20.5x	19.7x
Avery Dennison CorporationAVY	12,577	18.6x	17.3x
Stanley Black & Decker, Inc.SWK	12,468	30.3x	17.6x
Huntington Ingalls Industries, Inc.HII	12,463	20.6x	18.2x
Builders FirstSource, Inc.BLDR	8,325	19.9x	11.0x
Industry Median		28.6x	22.9x
(*) Profit after tax		521	613
Equity Value		14,875	14,065
(/) Outstanding shares		56	56
Fair Price		$266	$252

Selected Fair Value (avg of trailing + forward)

$258.96

-4.5%

Fair Value

$213.90

Market Price

$271.11

Upside / Downside

-21.1%

Verdict

Overvalued

EV/EBITDA Valuation — Manufacturing - Tools & Accessories

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Lincoln Electric Holdings, Inc.LECO	15,148	19.8x	18.4x
ATI Inc.ATI	21,616	28.5x	26.2x
RBC Bearings IncorporatedRBC	19,336	41.3x	43.4x
WESCO International, Inc.WCC	17,090	16.4x	16.5x
IDEX CorporationIEX	16,055	19.1x	19.2x
Nordson CorporationNDSN	15,816	20.4x	21.3x
Mueller Industries, Inc.MLI	15,572	13.1x	13.0x
Avery Dennison CorporationAVY	12,577	12.4x	12.5x
Stanley Black & Decker, Inc.SWK	12,468	14.2x	14.1x
Huntington Ingalls Industries, Inc.HII	12,463	12.2x	11.8x
Builders FirstSource, Inc.BLDR	8,325	10.0x	9.9x
Industry Median		15.3x	15.3x
(*) EBITDA		813	878
= Enterprise Value		12,449	13,424
(-) Net Debt		985	985
Equity Value		11,464	12,439
(/) Outstanding shares		56	56
Fair Price		$205	$223

Selected Fair Value (avg of trailing + forward)

$213.90

-21.1%

Fair Value

$188.44

Market Price

$271.11

Upside / Downside

-30.5%

Verdict

Overvalued

EV/Revenue Valuation — Manufacturing - Tools & Accessories

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Lincoln Electric Holdings, Inc.LECO	15,148	3.8x	3.5x
ATI Inc.ATI	21,616	5.0x	4.6x
RBC Bearings IncorporatedRBC	19,336	12.4x	13.0x
WESCO International, Inc.WCC	17,090	1.0x	1.0x
IDEX CorporationIEX	16,055	5.0x	5.0x
Nordson CorporationNDSN	15,816	6.4x	6.7x
Mueller Industries, Inc.MLI	15,572	3.4x	3.4x
Avery Dennison CorporationAVY	12,577	1.8x	1.8x
Stanley Black & Decker, Inc.SWK	12,468	1.2x	1.2x
Huntington Ingalls Industries, Inc.HII	12,463	1.2x	1.1x
Builders FirstSource, Inc.BLDR	8,325	0.9x	0.9x
Industry Median		2.6x	2.6x
(*) Revenue		4,231	4,565
= Enterprise Value		11,062	11,966
(-) Net Debt		985	985
Equity Value		10,077	10,981
(/) Outstanding shares		56	56
Fair Price		$180	$197

Selected Fair Value (avg of trailing + forward)

$188.44

-30.5%

PEG Fair Value

Fair Value

$187.89

Market Price

$271.11

Upside / Downside

-30.7%

Verdict

Overvalued

PEG Ratio

1.44Fair Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 24.7 ÷ (16.0% + 1.1%) = 1.44

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	16.0%
Dividend Yield	+1.1%
Adjusted Growth (clamped 8–25%)	17.1%
Fair P/E	17.1x
NTM EPS (FY2026)	$10.97
Fair Value	$187.89

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$9.32	—	—
FY2026E	$10.97	+17.7%	8
FY2027E	$12.06	+9.9%	8
FY2028E	$13.05	+8.3%	6
FY2029E	$15.20	+16.5%	5
FY2030E	$19.57	+28.8%	3

5Y Forward EPS CAGR: 16.0%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$276.6M	$4.60	—
FY2022	$472.2M	$8.04	+74.8%
FY2023	$545.2M	$9.37	+16.5%
FY2024	$466.1M	$8.15	-13.0%
FY2025	$520.5M	$9.32	+14.4%

4Y Historical EPS CAGR: 19.3%

Earnings Power Value

Fair Value

$106.79

Market Price

$271.11

Upside / Downside

-60.6%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	578	578	578
(/) WACC	9.8%	8.3%	6.8%
Enterprise Value	5,890	6,952	8,482
(-) Net debt	985	985	985
Equity Value	4,905	5,967	7,497
(/) Outstanding shares	56	56	56
Fair Price	$87.78	$106.79	$134.17

Dividend Discount Model

Fair Value

$76.99

Market Price

$271.11

Upside / Downside

-71.6%

Verdict

Overvalued

Dividend Profile

Current DPS

$3.01

Dividend Yield

1.13%

Payout Ratio

32.3%

Dividend Coverage

3.09x

FCF Payout Ratio31.5%

DPS CAGR (4Y)10.4%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$3.01	32.3%	+6.2%
2024	$2.83	34.8%	+11.5%
2023	$2.54	27.1%	+14.3%
2022	$2.23	27.7%	+9.7%
2021	$2.03	44.1%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$3.40	13.0%	0.9198	$3.13
2027	$3.84	13.0%	0.8460	$3.25
2028	$4.34	13.0%	0.7781	$3.38
2029	$4.90	13.0%	0.7157	$3.51
2030	$5.54	13.0%	0.6582	$3.65
Terminal Value	$5.68 DPS	2.5%		$60.07

PV of Projected Dividends$16.91

PV of Terminal Value$60.07

Fair Value per Share$76.99

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	11.0%	12.0%	13.0%	14.0%	15.0%
6.7%	$106	$110	$115	$120	$125
7.7%	$85	$89	$92	$96	$100
8.7%	$71	$74	$77	$80	$83
9.7%	$61	$63	$66	$69	$71
10.7%	$53	$55	$58	$60	$62