Latest Ratios: P/E Ratio 25.3x · EV/EBITDA 12.1x · 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 | $5.7B | $6.8B | $7.3B | $5.3B | $2.8B | — | — | — |
| Enterprise Value | $7.0B | $8.1B | $8.2B | $6.3B | $4.1B | — | — | — |
| P/E Ratio → | 25.27 | 30.03 | 27.83 | 25.78 | 12.61 | — | — | — |
| P/S Ratio | 2.01 | 2.40 | 2.67 | 1.89 | 1.09 | — | — | — |
| P/B Ratio | 2.59 | 3.08 | 4.05 | 3.19 | 2.03 | — | — | — |
| P/FCF | 26.84 | 31.92 | 24.14 | 18.61 | 16.21 | — | — | — |
| P/OCF | 21.97 | 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 | 12.11 | 13.99 | 16.03 | 13.23 | 10.31 | — | — | — |
| EV / EBIT | 14.18 | 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 | 0.4% | 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 | 4.0% | 3.3% | 3.6% | 3.9% | 7.9% | — | — | — |
| FCF Yield | 3.7% | 3.1% | 4.1% | 5.4% | 6.2% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.4% | 0.3% | 0.2% | 0.3% | 0.2% | — | — | — |
| Shares Outstanding | — | $61M | $61M | $61M | $60M | $60M | $60M | $60M |
Acquisition integration and leverage
According to current market data, ESAB trades at a forward P/E of 17.46, which appears to discount the company relative to broader industrial peers, suggesting investors remain cautious about the sustainability of its standalone growth trajectory following the 2022 spin-off from its former parent company.
The current valuation multiple implies that the market is still in the process of re-rating ESAB as an independent entity rather than a subsidiary. While the forward P/E is lower than many diversified industrial peers, the PEG ratio of 3.72 suggests that current growth expectations may be priced aggressively, warranting close monitoring of future earnings delivery.
Based on reported financial statements, ESAB's ROIC has remained in a narrow range between 2.2% and 3.6% over the last ten quarters, indicating that the company is currently struggling to generate returns on invested capital that significantly exceed its likely cost of capital.
The persistent low ROIC is likely a byproduct of the significant goodwill and intangible assets added to the balance sheet through recent acquisitions. Until these acquired assets begin to contribute more meaningfully to operating income, the company's ability to compound value for shareholders will remain structurally muted compared to more mature industrial peers.
As indicated by the quarterly data, ESAB's cash conversion cycle has fluctuated between 68 and 84 days, reflecting the inherent challenges of managing a global supply chain and inventory levels across diverse international markets in the wake of recent corporate restructuring efforts.
The variability in the cash conversion cycle suggests that management is still optimizing its working capital efficiency as a standalone entity. Investors should monitor the DSO and DIO trends, as any sustained increase in these metrics could signal a buildup of obsolete inventory or a deterioration in the credit quality of the company's global distributor network.
Based on recent balance sheet filings, ESAB's debt-to-equity ratio has risen to 0.96 as of 2026Q1, a notable increase from the 0.65 level observed in 2025Q4, which highlights the company's reliance on debt financing to fuel its recent inorganic growth and acquisition strategy.
While the current interest coverage ratio of 3.93 remains manageable, the upward trend in leverage warrants caution, particularly if global industrial demand experiences a cyclical downturn. The company's ability to service this debt will depend heavily on its success in integrating recent acquisitions and achieving the projected synergies from the ESAB Business System.
The P/E ratio is frequently misapplied to ESAB, as it obscures the significant impact of non-cash amortization charges related to recent acquisitions, which artificially depress GAAP earnings and fail to reflect the underlying cash-generative capacity of the company's core fabrication and gas control segments.
Analysts should prioritize Adjusted EBITDA or Free Cash Flow metrics over P/E to better assess the company's true earning power. Relying on P/E in a period of heavy M&A activity risks underestimating the company's operational performance and its potential for margin expansion as integration costs subside.
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Quick answers to the most common questions about buying ESAB stock.
ESAB Corporation's current P/E ratio is 25.3x. The historical average is 24.1x. This places it at the 25th percentile of its historical range.
ESAB Corporation's current EV/EBITDA is 12.1x. 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 25.3x. 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 0.38% 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.