Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

ESAB Corporation (ESAB)

Company Dividend Discount ModelIndustry: Manufacturing - Metal FabricationSector: Industrials

Valuation Snapshot

Stable Growth$27.95 - $40.15$33.91
Multi-Stage$43.59 - $47.95$45.73
Blended Fair Value$39.82
Current Price$117.56
Upside-66.13%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%0.280.220.100.000.000.000.000.000.000.00
YoY Growth--27.36%120.38%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.26%0.20%0.17%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)242.84
(-) Cash Dividends Paid (M)20.68
(=) Cash Retained (M)222.16
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)48.5730.3518.21
Cash Retained (M)222.16222.16222.16
(-) Cash Required (M)-48.57-30.35-18.21
(=) Excess Retained (M)173.59191.80203.95
(/) Shares Outstanding (M)60.8360.8360.83
(=) Excess Retained per Share2.853.153.35
LTM Dividend per Share0.340.340.34
(+) Excess Retained per Share2.853.153.35
(=) Adjusted Dividend3.193.493.69
WACC / Discount Rate9.20%9.20%9.20%
Growth Rate-2.00%-1.00%0.00%
Fair Value$27.95$33.91$40.15
Upside / Downside-76.23%-71.16%-65.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)242.84240.41238.00235.62233.27230.94237.86
Payout Ratio8.52%24.81%41.11%57.41%73.70%90.00%92.50%
Projected Dividends (M)20.6859.6597.84135.26171.93207.84220.02

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.20%9.20%9.20%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)54.0754.6355.18
Year 2 PV (M)80.4082.0583.72
Year 3 PV (M)100.77103.88107.06
Year 4 PV (M)116.11120.92125.88
Year 5 PV (M)127.24133.87140.76
PV of Terminal Value (M)2,173.392,286.572,404.41
Equity Value (M)2,651.982,781.912,917.01
Shares Outstanding (M)60.8360.8360.83
Fair Value$43.59$45.73$47.95
Upside / Downside-62.92%-61.10%-59.21%

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