4 models fit Lincoln Electric Holdings Inc. Common Shares and they disagree: 1 of 4 land within 15% of the average.
Two or more of our models back this value.
Large premium(i)Bronze58
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionLincoln Electric Holdings Inc. Common Shares (LECO)
Fair value (4 models)
$163
ACCE price target
$276
Rating
Overvalued
Horizon
12 months
Fair value published on 21 Oct 2026, 11:06 CEST; previously $169 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 26 Sept 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 11:06 CEST.
Price used: $256 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
56.6% above
-36.2% to fair value
ACCE score
60
out of 100
Analysts
58% buy
12 covering
P/E
25.7x
forward 21.2x
1-year return
+5.7%
Dividend yield
1.19%
Lincoln Electric Holdings Inc. Common Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Lincoln Electric makes arc welding equipment, consumables such as wire and flux, and cutting systems, and it sells much of it through its own distribution and direct channels to fabricators, shipbuilders and heavy-equipment makers. Its moat rests on installed base and consumables pull-through: once a welding fleet is standardized on Lincoln power sources and wire, replacement consumable spend recurs for years, and that aftermarket mix is what supports a 36.1% gross margin. Revenue is growing 12.0% and return on equity is 37.7%, a combination that is uncommon in a capital-equipment name and points to pricing power rather than volume alone. The stock trades at 26.2x trailing and 21.0x forward earnings, so the market is already paying for that quality and any slowdown in industrial capex or a fade in the 18.2% operating margin would hit the multiple hard. With a 60/100 score and no index membership, the name is a reasonable candidate for a deeper look at whether the consumables franchise and reshoring-driven manufacturing demand can sustain double-digit growth at these margins.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Quality score decline
ACCE Quality score fell from 81 to 81 (stable), but Valuation (51) and Momentum (54) are weak relative to Growth (60). Score declined 1 point in 90 days.
moderate
Long-term growth deceleration
Five-year revenue CAGR of 4.0% lags recent YoY growth of 12.0%, suggesting cyclical strength rather than structural acceleration.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Lincoln Electric earned 37.7% return on equity, far exceeding the cost of capital and signaling durable competitive advantage.
Revenue accelerated to 12.0% year-over-year growth while the company repurchased 2.3% of shares, compounding per-share value.
The stock trades at 20.9x forward earnings, below the 23.9x sector median, despite generating 12.4% net margins.
Why it could disappoint
Consensus valuation models see the stock 34.5% overvalued at $261.13 versus a $171.04 fair value target.
Current price implies 9.1% annual cash flow growth for five years, well above the company's 4.0% historical average.
Free cash flow yield of 2.2% leaves little margin for error if manufacturing demand weakens or input costs spike.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 27, 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 LECO's valuation models land
Price
$255.96
Model fair value
$163
Model range
$75.31 to $261
Fair value $163
Price $256
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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