4 models fit ESAB Corporation Common Stock and they disagree: 1 of 4 land within 15% of the average.
Two or more of our models back this value.
Discount(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionESAB Corporation Common Stock (ESAB)
Fair value (4 models)
$77.79
ACCE price target
$75.00
Rating
Undervalued
Horizon
12 months
Fair value published on 19 Oct 2026, 17:05 CEST; previously $94.66 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 17:05 CEST.
Price used: $66.95 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
13.9% below
+16.2% to fair value
ACCE score
46
out of 100
Analysts
91% buy
11 covering
P/E
20.9x
forward 10.5x
1-year return
-45.7%
Dividend yield
0.72%
ESAB Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
ESAB makes welding and cutting consumables, equipment and automation systems, selling most of it into industrial fabrication, shipbuilding and infrastructure end markets. Its moat rests on installed-base relationships and the qualification cycle customers go through before swapping consumables, which tends to hold pricing and volume through the cycle. Revenue grew 12.9%, and at a 37.0% gross margin and 12.0% operating margin the business is earning a reasonable return on what it sells, though its 8.7% ROE is held down by the balance sheet. The forward P/E of 10.7 against a trailing 20.4 implies the market expects earnings to recover sharply, which makes the next few quarters of margin delivery the thing to check. The composite score of 46/100 and absence from any major index mean this is a mid-cap that has not attracted much institutional attention, so it merits a deeper look at the margin trajectory before anything else.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapsing despite revenue growth
Revenue grew 12.9% year over year, but earnings fell 54.1%. Net margin of 5.8% and operating margin of 12.0% suggest costs or one-offs are eroding profit faster than sales are growing.
moderate
Elevated short interest
Short interest sits at 10.3%, a meaningful share of the float that signals some investors are betting on further weakness.
moderate
Weak momentum score
The margin component scores 17/100 and the overall ACCE Score is 46/100, unchanged from 90 days ago, so no improvement has built up.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 12.9% year over year, faster than its 7.8% average annual pace over five years.
Free cash flow over the last twelve months reached $213M, and the stock offers a 5.3% free cash flow yield.
The stock trades at 10.2x forward earnings against a sector median of 23.4x, and the consensus sees model fair value of $77.79.
Why it could disappoint
Net margin of 5.8% and return on invested capital of 5.2% leave little room for error in a cyclical business.
The company missed earnings expectations last quarter, reporting EPS of 1.33 against 1.37 expected.
At $66.95, the share price sits 13.9% below model fair value, and 10.7% below the ACCE price target, which may reflect market doubts about welding demand.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 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
INVESTOR
Where ESAB's valuation models land
Price
$66.95
Model fair value
$77.79
Model range
$53.21 to $127
Fair value $77.79
Price $66.95
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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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores