Lincoln Electric Valuation
| LECO Stock | USD 199.15 3.26 1.61% |
At this time, the firm appears to be fairly valued. Lincoln Electric Holdings secures a last-minute Real Value of $203.98 per share. The latest price of the firm is $199.15. Our model forecasts the value of Lincoln Electric Holdings from analyzing the firm fundamentals such as Current Valuation of 12.1 B, return on equity of 0.38, and Profit Margin of 0.12 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Lincoln Electric's valuation include:
Price Book 8.391 | Enterprise Value 12.1 B | Enterprise Value Ebitda 16.1003 | Price Sales 2.7779 | Forward PE 21.4592 |
Fairly Valued
Today
Please note that Lincoln Electric's price fluctuation is very steady at this time. Calculation of the real value of Lincoln Electric Holdings is based on 3 months time horizon. Increasing Lincoln Electric's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Lincoln Electric is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lincoln Stock. However, Lincoln Electric's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 199.15 | Real 203.98 | Target 206.78 | Hype 199.06 |
The intrinsic value of Lincoln Electric's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Lincoln Electric's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Lincoln Electric Holdings helps investors to forecast how Lincoln stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Lincoln Electric more accurately as focusing exclusively on Lincoln Electric's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Lincoln Electric's intrinsic value based on its ongoing forecasts of Lincoln Electric's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lincoln Electric's closest peers.
Lincoln Electric Cash |
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Lincoln Valuation Trend
Knowing Lincoln Electric's actual value is paramount for traders when making sound investment determinations. Using both Lincoln Electric's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Lincoln Revenue by Product
Lincoln Electric Total Value Analysis
Lincoln Electric Holdings is now forecasted to have valuation of 12.1 B with market capitalization of 11.24 B, debt of 1.16 B, and cash on hands of 152.8 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Lincoln Electric fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
12.1 B | 11.24 B | 1.16 B | 152.8 M |
Lincoln Electric Investor Information
About 80.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.87. Lincoln Electric Holdings recorded earning per share (EPS) of 8.38. The entity last dividend was issued on the 31st of December 2024. The firm had 2:1 split on the 1st of June 2011. Based on the measurements of operating efficiency obtained from Lincoln Electric's historical financial statements, Lincoln Electric Holdings is performing exceptionally good at this time. It has a great probability to report excellent financial results in January.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.088 | 0.1713 |
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| Total Cash From Operating Activities | 700.9 M | 667.5 M |
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| Operating Income | 753.7 M | 717.8 M |
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Lincoln Electric Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lincoln Electric has an asset utilization ratio of 124.11 percent. This suggests that the Company is making $1.24 for each dollar of assets. An increasing asset utilization means that Lincoln Electric Holdings is more efficient with each dollar of assets it utilizes for everyday operations.Lincoln Electric Ownership Allocation
Lincoln Electric Holdings maintains a total of 56.43 Million outstanding shares. The majority of Lincoln Electric outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Lincoln Electric Holdings to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Lincoln Electric Holdings. Please pay attention to any change in the institutional holdings of Lincoln Electric as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.Lincoln Electric Profitability Analysis
The company reported the previous year's revenue of 4.19 B. Net Income was 545.25 M with profit before overhead, payroll, taxes, and interest of 1.28 B.Lincoln Electric Past Distributions to stockholders
About Lincoln Electric Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Lincoln Electric Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lincoln Electric Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Lincoln Electric's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Lincoln Electric's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lincoln Electric. We calculate exposure to Lincoln Electric's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Lincoln Electric's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.5 B | 746.9 M | |
| Pretax Profit Margin | 0.16 | 0.09 | |
| Operating Profit Margin | 0.17 | 0.09 | |
| Net Profit Margin | 0.13 | 0.14 | |
| Gross Profit Margin | 0.35 | 0.36 |
Lincoln Electric Quarterly Retained Earnings |
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A single share of Lincoln Electric represents a small ownership stake in the entity. As a stockholder of Lincoln, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Lincoln Electric Dividends Analysis For Valuation
At this time, Lincoln Electric's Dividends Paid is very stable compared to the past year. As of the 18th of December 2024, Dividend Yield is likely to grow to 0.02, while Dividend Paid And Capex Coverage Ratio is likely to drop 1.53. . At this time, Lincoln Electric's Retained Earnings are very stable compared to the past year. As of the 18th of December 2024, Earnings Yield is likely to grow to 0.07, while Retained Earnings Total Equity is likely to drop about 2.5 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 148 M | 155.4 M | |
| Dividend Yield | 0.01 | 0.02 | |
| Dividend Payout Ratio | 0.27 | 0.28 | |
| Dividend Paid And Capex Coverage Ratio | 2.79 | 1.53 |
There are various types of dividends Lincoln Electric can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Lincoln shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Lincoln Electric Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lincoln pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lincoln Electric by the value of the dividends paid out.
Lincoln Electric Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 58.2 M | |
| Quarterly Earnings Growth Y O Y | -0.203 | |
| Forward Price Earnings | 21.4592 |
Lincoln Electric Current Valuation Indicators
Lincoln Electric's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Lincoln Electric's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Lincoln Electric, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Lincoln Electric's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Lincoln Electric's worth.When determining whether Lincoln Electric Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lincoln Electric's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lincoln Electric Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lincoln Electric Holdings Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lincoln Electric Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lincoln Electric. If investors know Lincoln will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lincoln Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.20) | Dividend Share 2.84 | Earnings Share 8.38 | Revenue Per Share 71.184 | Quarterly Revenue Growth (0.05) |
The market value of Lincoln Electric Holdings is measured differently than its book value, which is the value of Lincoln that is recorded on the company's balance sheet. Investors also form their own opinion of Lincoln Electric's value that differs from its market value or its book value, called intrinsic value, which is Lincoln Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lincoln Electric's market value can be influenced by many factors that don't directly affect Lincoln Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lincoln Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lincoln Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lincoln Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.