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DCF Valuation
Base-case fair value
$32.43
Intrinsic $43.24 · 25% MOS
Current price: $87.95
Base-case summary
Our base-case DCF for ESAB Corp (ESAB) projects 10 years of free cash flow growth at 2.0% for years 1–5 and 1.0% for years 6–10, anchored to 0.3% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $218M in trailing free cash flow, this produces an intrinsic value of $43.24 per share. A 25% safety margin gives a fair value of $32.43, suggesting the stock is currently 63% overvalued against the $87.95 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$218M
Cash & equivalents
$1.0B
Total debt
$2.1B
Shares outstanding
61M