ESAB Corporation (ESAB) Financial Ratios
7 years of historical data (2019–2025) · Industrials · Manufacturing - Metal Fabrication
EV/EBITDA
↑
13.40
+0% vs avg
5yr avg: 13.39
30Y Low10.3·High16.0
P/FCF
↑
30.32
↑+33% vs avg
5yr avg: 22.72
30Y Low16.2·High31.9
P/B Ratio
↑
2.93
-5% vs avg
5yr avg: 3.09
30Y Low2.0·High4.1
ROE
↑
11.3%
-7% vs avg
5yr avg: 12.2%
30Y Low6%·High15%
Debt/EBITDA
↑
2.49
+16% vs avg
5yr avg: 2.15
30Y Low0.2·High3.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ESAB Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
ESAB Corporation trades at 28.5x earnings, 19% above its 5-year average of 24.1x, sitting at the 75th percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 12%. On a free-cash-flow basis, the stock trades at 30.3x P/FCF, 33% above the 5-year average of 22.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.5B | $6.8B | $7.3B | $5.3B | $2.8B | — | — | — |
| Enterprise Value | $7.7B | $8.1B | $8.2B | $6.3B | $4.1B | — | — | — |
| P/E Ratio → | 28.55 | 30.03 | 27.83 | 25.78 | 12.61 | — | — | — |
| P/S Ratio | 2.27 | 2.40 | 2.67 | 1.89 | 1.09 | — | — | — |
| P/B Ratio | 2.93 | 3.08 | 4.05 | 3.19 | 2.03 | — | — | — |
| P/FCF | 30.32 | 31.92 | 24.14 | 18.61 | 16.21 | — | — | — |
| P/OCF | 24.81 | 26.13 | 20.62 | 15.90 | 13.17 | — | — | — |
P/E links to full P/E history page with 30-year chart
ESAB EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
ESAB Corporation's enterprise value stands at 13.4x EBITDA, roughly in line with its 5-year average of 13.4x. This is roughly in line with the Industrials sector median of 13.8x.
| 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 | 13.40 | 13.99 | 16.03 | 13.23 | 10.31 | — | — | — |
| EV / EBIT | 15.68 | 19.77 | 17.73 | 14.26 | 10.97 | — | — | — |
| EV / FCF | — | 37.77 | 27.15 | 22.21 | 23.34 | — | — | — |
ESAB Profitability
Margins and return-on-capital ratios measuring operating efficiency
ESAB Corporation earns an operating margin of 17.3%, above the Industrials sector average of 4.3%. Operating margins have expanded from 14.6% to 17.3% over the past 3 years, signaling improving operational efficiency. ROE of 11.3% is modest. ROIC of 11.9% represents solid returns on invested capital versus a sector median of 6.1%.
Margins
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% |
Return on Capital
| 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% |
ESAB Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
ESAB Corporation carries a Debt/EBITDA ratio of 2.5x, which is manageable (23% below the sector average of 3.2x). Net debt stands at $1.2B ($1.4B total debt minus $186M cash). Interest coverage of 5.1x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 | — | — | — |
ESAB Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.90x means ESAB Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 1.17x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.61x to 1.90x over the past 3 years.
| 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 |
ESAB Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
ESAB Corporation returns 0.3% to shareholders annually primarily through dividends. The payout ratio of 9.7% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 0.3% | 0.3% | 0.2% | 0.3% | 0.2% | — | — | — |
| Payout Ratio | 9.7% | 9.7% | 6.4% | 6.5% | 2.7% | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 3.3% | 3.6% | 3.9% | 7.9% | — | — | — |
| FCF Yield | 3.3% | 3.1% | 4.1% | 5.4% | 6.2% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.3% | 0.3% | 0.2% | 0.3% | 0.2% | — | — | — |
| Shares Outstanding | — | $61M | $61M | $61M | $60M | $60M | $60M | $60M |
Peer Comparison
Compare ESAB with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ESABYou | $6B | 28.5 | 13.4 | 30.3 | 35.5% | 17.3% | 11.3% | 11.9% | 2.5 |
 ITW | $76B | 25.2 | 18.3 | 28.1 | 44.1% | 26.3% | 93.7% | 29.0% | 1.9 |
 LIN | $237B | 35.1 | 20.4 | 46.6 | 43.3% | 26.3% | 17.4% | 11.3% | 2.1 |
 GTLS | $10B | 630.3 | 14.4 | 49.1 | 29.2% | 15.2% | 1.3% | 7.4% | 4.0 |
 RBC | $20B | 70.3 | 50.2 | 59.0 | 44.4% | 22.5% | 9.0% | 7.6% | 2.4 |
 LII | $19B | 24.0 | 18.3 | 29.0 | 33.0% | 19.5% | 78.1% | 29.8% | 1.8 |
 AIXI | $3M | -0.0 | — | — | 44.4% | -783.6% | — | — | — |
 HLIO | $3B | 62.4 | 23.5 | 28.9 | 32.3% | 7.9% | 5.4% | 4.4% | 0.9 |
 NNBR | $147M | -2.6 | 19.5 | 20.4 | 5.7% | -4.3% | -30.8% | -4.5% | 11.9 |
 CECO | $4B | 71.8 | 46.0 | — | 32.7% | 6.7% | 17.4% | 10.0% | 0.3 |
 NUE | $56B | 32.4 | 14.6 | — | 11.9% | 8.2% | 8.0% | 7.7% | 1.7 |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 7 years · Updated daily
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ESAB — Frequently Asked Questions
Quick answers to the most common questions about buying ESAB stock.
What is ESAB Corporation's P/E ratio?
ESAB Corporation's current P/E ratio is 28.5x. The historical average is 24.1x. This places it at the 75th percentile of its historical range.
What is ESAB Corporation's EV/EBITDA?
ESAB Corporation's current EV/EBITDA is 13.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.4x.
What is ESAB Corporation's ROE?
ESAB Corporation's return on equity (ROE) is 11.3%. The historical average is 10.5%.
Is ESAB stock overvalued?
Based on historical data, ESAB Corporation is trading at a P/E of 28.5x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is ESAB Corporation's dividend yield?
ESAB Corporation's current dividend yield is 0.34% with a payout ratio of 9.7%.
What are ESAB Corporation's profit margins?
ESAB Corporation has 35.5% gross margin and 17.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does ESAB Corporation have?
ESAB Corporation's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.