ESAB — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($121.64)
DCF	$36.35	-70.1%
Graham Number	$57.36	-52.8%
Reverse DCF	—	implied g: 23.8%
DDM	$8.24	-93.2%
EV/EBITDA	$122.39	+0.6%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $165.63M

Near-term growth (yrs 1–5)(%)Rev: 7.5% / EPS: -31.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.23%

Computed WACC: 9.23%

Cost of equity (Re)10.88%(Rf 4.30% + β 1.20 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)84.86%

Debt weight (D/V)15.14%

Results

Intrinsic Value / share$34.47

Current Price$121.64

Upside / Downside-71.7%

Net Debt (used)$1.16B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-0.5%	3.5%	7.5%	11.5%	15.5%
7.0%	$37.71	$49.01	$62.13	$77.26	$94.64
8.0%	$27.36	$36.43	$46.93	$59.04	$72.94
9.0%	$20.20	$27.73	$36.44	$46.46	$57.96
10.0%	$14.95	$21.36	$28.75	$37.26	$47.00
11.0%	$10.95	$16.49	$22.89	$30.24	$38.65

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $4.10

Book Value / share($)Yahoo: $35.67

Results

Graham Number$57.36

Current Price$121.64

Margin of Safety-52.8%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.23%

Terminal growth rate(%)

Computed WACC: 9.23%

Cost of equity (Re)10.88%(Rf 4.30% + β 1.20 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)84.86%

Debt weight (D/V)15.14%

Results

Current Price$121.64

Implied Near-term FCF Growth24.5%

Historical Revenue Growth7.5%

Historical Earnings Growth-31.6%

Base FCF (TTM)$165.63M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $0.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$8.24

Current Price$121.64

Upside / Downside-93.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $550.91M

Target EV/EBITDA multipleCurrent: 15.6×

Net Debt($B)Default: $1.16B

Results

Implied Equity Value / share$122.39

Current Price$121.64

Upside / Downside+0.6%

Implied EV$8.59B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$1.16B	$1.16B	$1.16B	$1.16B	$1.16B
11.6x	$86.11	$86.11	$86.11	$86.11	$86.11
13.6x	$104.25	$104.25	$104.25	$104.25	$104.25
15.6x	$122.39	$122.39	$122.39	$122.39	$122.39
17.6x	$140.54	$140.54	$140.54	$140.54	$140.54
19.6x	$158.68	$158.68	$158.68	$158.68	$158.68

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