Latest Ratios: P/E Ratio 18.1x · EV/EBITDA 9.3x · ROE 11.3%. (2019–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.1B | $6.8B | $7.3B | $5.3B | $2.8B | — | — | — |
| Enterprise Value | $5.3B | $8.1B | $8.2B | $6.3B | $4.1B | — | — | — |
| P/E Ratio → | 18.10 | 30.03 | 27.83 | 25.78 | 12.61 | — | — | — |
| P/S Ratio | 1.44 | 2.40 | 2.67 | 1.89 | 1.09 | — | — | — |
| P/B Ratio | 1.86 | 3.08 | 4.05 | 3.19 | 2.03 | — | — | — |
| P/FCF | 19.22 | 31.92 | 24.14 | 18.61 | 16.21 | — | — | — |
| P/OCF | 15.73 | 26.13 | 20.62 | 15.90 | 13.17 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.83 | 3.01 | 2.26 | 1.57 | — | — | — |
| EV / EBITDA | 9.29 | 13.99 | 16.03 | 13.23 | 10.31 | — | — | — |
| EV / EBIT | 10.87 | 19.77 | 17.73 | 14.26 | 10.97 | — | — | — |
| EV / FCF | — | 37.77 | 27.15 | 22.21 | 23.34 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.5% | 35.5% | 37.9% | 36.6% | 34.1% | 34.5% | 35.0% | 35.4% |
| Operating Margin | 17.3% | 17.3% | 16.3% | 14.6% | 12.7% | 12.6% | 10.4% | 11.4% |
| Net Profit Margin | 8.0% | 8.0% | 9.7% | 7.4% | 8.6% | 9.7% | 8.1% | 7.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 11.3% | 11.3% | 15.3% | 13.5% | 11.5% | 9.3% | 6.0% | 6.4% |
| ROA | 5.2% | 5.2% | 6.7% | 5.4% | 6.2% | 6.9% | 4.6% | 5.0% |
| ROIC | 11.9% | 11.9% | 12.5% | 11.5% | 9.5% | 8.9% | 5.8% | 7.2% |
| ROCE | 13.1% | 13.1% | 13.5% | 12.7% | 10.9% | 10.6% | 6.8% | 8.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.65 | 0.65 | 0.64 | 0.68 | 0.95 | 0.04 | 0.04 | 0.03 |
| Debt / EBITDA | 2.49 | 2.49 | 2.26 | 2.36 | 3.33 | 0.29 | 0.35 | 0.23 |
| Net Debt / Equity | — | 0.56 | 0.51 | 0.62 | 0.89 | 0.03 | 0.02 | -0.01 |
| Net Debt / EBITDA | 2.17 | 2.17 | 1.78 | 2.14 | 3.15 | 0.18 | 0.17 | -0.09 |
| Debt / FCF | — | 5.85 | 3.01 | 3.60 | 7.13 | 0.32 | 0.18 | -0.14 |
| Interest Coverage | 5.14 | 5.14 | 7.16 | 5.17 | 9.76 | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.90 | 1.90 | 1.82 | 1.61 | 1.64 | 1.62 | 1.75 | 2.14 |
| Quick Ratio | 1.17 | 1.17 | 1.18 | 0.98 | 0.95 | 0.91 | 1.07 | 1.34 |
| Cash Ratio | 0.28 | 0.28 | 0.39 | 0.16 | 0.12 | 0.07 | 0.11 | 0.24 |
| Asset Turnover | — | 0.60 | 0.68 | 0.72 | 0.69 | 0.70 | 0.58 | 0.64 |
| Inventory Turnover | 3.80 | 3.80 | 4.22 | 4.48 | 4.10 | 3.79 | 4.04 | 4.15 |
| Days Sales Outstanding | — | 57.95 | 49.32 | 50.67 | 52.68 | 57.65 | 61.69 | 59.15 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.3% | 0.2% | 0.3% | 0.2% | — | — | — |
| Payout Ratio | 9.7% | 9.7% | 6.4% | 6.5% | 2.7% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.5% | 3.3% | 3.6% | 3.9% | 7.9% | — | — | — |
| FCF Yield | 5.2% | 3.1% | 4.1% | 5.4% | 6.2% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.5% | 0.3% | 0.2% | 0.3% | 0.2% | — | — | — |
| Shares Outstanding | — | $61M | $61M | $61M | $60M | $60M | $60M | $60M |
Includes 30+ ratios · 7 years · Updated daily
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Quick answers to the most common questions about buying ESAB stock.
ESAB Corporation's current P/E ratio is 18.1x. The historical average is 24.1x. This places it at the 25th percentile of its historical range.
ESAB Corporation's current EV/EBITDA is 9.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.4x.
ESAB Corporation's return on equity (ROE) is 11.3%. The historical average is 10.5%.
Based on historical data, ESAB Corporation is trading at a P/E of 18.1x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
ESAB Corporation's current dividend yield is 0.53% with a payout ratio of 9.7%.
ESAB Corporation has 35.5% gross margin and 17.3% operating margin. Operating margin between 10-20% is typical for established companies.
ESAB Corporation's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Acquisition-driven leverage and goodwill
Metrics are mathematically derived from official filings.
Margin Volatility Masks Underlying Stability
ESAB's gross margin recovered to 38.0% in 2026Q2 from a 30.5% trough in 2025Q4, but operating margin swung to 9.7%, down from 23.1%, per reported quarterly data.
The gross margin rebound suggests pricing power and cost pass-through, yet the operating margin collapse in 2026Q2 indicates that SG&A escalation and acquisition-related costs are compressing profitability. This volatility may reflect timing issues rather than structural deterioration, but investors should monitor whether the 17.3% average operating margin over the past year is sustainable. The net margin of 4.0% in 2026Q2 is well below the 10%+ levels seen in 2024, implying that recent growth is not converting efficiently to bottom-line profit.
Return on Capital Compressed by Acquisition
ROIC fell to 1.4% in 2026Q2 from a 3.3% average in 2024, as the $1.5B acquisition expanded the capital base faster than earnings, based on balance sheet data.
The sharp decline in ROIC and ROE (1.3% in 2026Q2) reflects the dilutive impact of the recent acquisition, which added goodwill and intangibles without immediate profit contribution. Prior to the deal, ROIC was stable around 3%, suggesting that the core business generates modest but consistent returns. The question is whether the acquired gas control assets can achieve the targeted synergies to restore ROIC to pre-acquisition levels; otherwise, the company may be destroying value through M&A.
Working Capital Cycle Lengthens
ESAB's cash conversion cycle extended to 86 days in 2026Q2 from 68 days in 2024Q1, driven by higher DIO (100 days) and DSO (59 days), as per quarterly data.
The lengthening CCC indicates that ESAB is tying up more cash in inventory and receivables, which may be a deliberate strategy to support growth or a sign of slowing demand. DPO has remained relatively stable around 73 days, suggesting limited supplier leverage. The increase in DIO to 100 days is notable and could signal inventory build-up ahead of expected demand, but it also raises the risk of obsolescence. Efficiency gains in working capital management could free up cash, but current trends are moving in the opposite direction.
Leverage Spikes After Strategic Deal
Debt-to-equity rose to 0.94 in 2026Q2 from 0.65 a year earlier, and D/EBITDA jumped to 22.7x, though interest coverage remains adequate at 3.5x, per reported figures.
The acquisition has significantly increased financial leverage, with D/EBITDA reaching levels that would typically raise covenant concerns. However, interest coverage of 3.5x in 2026Q1 suggests that debt service is still manageable, though the 2026Q2 interest coverage is not reported. The company's ability to deleverage will depend on cash flow generation, which has been volatile. Investors should monitor whether the elevated leverage constrains future capital allocation or forces asset sales.
Liquidity Buffer Remains Adequate
Current ratio improved to 1.96 in 2026Q2 from 1.65 in 2024Q1, with quick ratio at 1.22, indicating sufficient short-term coverage, as per balance sheet data.
Despite the heavy acquisition, ESAB maintains a current ratio near 2.0, suggesting that current assets comfortably cover current liabilities. The quick ratio of 1.22 indicates that even without inventory, the company can meet near-term obligations. However, cash levels dropped to $217.5M in 2026Q2 from $1.0B in 2026Q1, reflecting the acquisition outflow. The liquidity position appears adequate for now, but the reliance on inventory (DIO of 100 days) could become a risk if demand softens.
Misapplied EV/EBITDA in M&A Context
ESAB's EV/EBITDA of 11.1x appears cheap versus peers, but this multiple is distorted by the recent acquisition and may understate true leverage, based on reported figures.
The EV/EBITDA ratio is commonly used to value industrial companies, but for ESAB, it is misleading because EBITDA is depressed by acquisition-related costs and the capital structure has changed dramatically. A more appropriate metric would be EV/EBIT or EV/operating cash flow, which better captures the earnings power after depreciation and amortization. Additionally, the high goodwill balance (41% of assets) suggests that future impairments could hit earnings, making P/E or P/B more relevant. Investors should adjust for one-time items and use normalized EBITDA to assess valuation.