4 models fit Eastern Company (The) Common Stock and they partly agree: 2 of 4 land within 15% of the average.
Two or more of our models back this value.
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Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionEastern Company (The) Common Stock (EML)
Fair value (4 models)
$20.98
ACCE price target
$24.10
Rating
Overvalued
Horizon
12 months
Fair value published on 24 Oct 2026, 16:06 CEST; previously $22.90 since 17 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 24 Oct 2026, 16:06 CEST.
Price used: $24.18 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
15.3% above
-13.2% to fair value
ACCE score
59
out of 100
P/E
21.6x
forward 9.6x
1-year return
+14.2%
Dividend yield
1.81%
Eastern Company (The) Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
The Eastern Company makes industrial hardware and security products, including locks, latches, and material handling components sold to OEM and aftermarket customers, with a smaller industrial metal parts business. The company's pitch rests on long customer relationships and a diversified end-market base, though its 21.4% gross margin and 2.6% operating margin leave little room for error if volumes keep softening. Revenue fell 11.9% over the latest reported period, so any thesis has to start from cyclical recovery or cost actions rather than organic growth momentum. The stock screens cheap on forward earnings at 9.6x against a trailing 22.0x, implying the market expects a sharp earnings rebound that the reported margins do not yet show. A 6.3% return on equity and a score of 61/100 suggest this is a turnaround candidate, worth a closer look only if the margin recovery can be confirmed in the next two quarters.
⚠ Investor warnings · 1 flagAI-assisted·How I use AI
moderate
Revenue declining sharply
Revenue fell 11.9% year over year, against a 5-year revenue CAGR of only +4.7%. Earnings rose 67.7%, so the jump looks margin-driven rather than volume-driven and may not hold.
AI research notes
AI-assisted·How I use AIWritten Oct 23, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $5M, and the company cut its diluted share count by 2.3% last fiscal year.
Revenue grew 4.7% a year on average over five years, showing the business has expanded over a longer stretch than the latest quarter suggests.
The stock trades at a trailing P/E of 21.6x, below the sector median forward P/E of 23.8x, and pays a dividend yield of 1.8%.
Why it could disappoint
Revenue fell 11.9% year over year, a sharp reversal from the company's longer-term growth record.
Return on invested capital of 2.4% and return on equity of 6.3% are weak returns on the money tied up in the business.
The stock trades 15.3% above the model fair value of $20.98, and the latest earnings per share missed expectations by 46.2%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where EML's valuation models land
Price
$24.18
Model fair value
$20.98
Model range
$7.65 to $33.81
Fair value $20.98
Price $24.18
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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