DCF Tool


Lincoln Electric Holdings, Inc. – Welding and Soldering Equipment Manufacturing
lincoln electric is the world leader in arc welding, robotic welding systems, plasma and oxyfuel cutting equipment and brazing and soldering alloys. headquartered in cleveland, ohio, lincoln has a worldwide network of manufacturing, distribution, sales and technical support covering more than 160 countries. for more information about lincoln electric and its products and services, visit the company's website at http://www.lincolnelectric.com.
Analysis Results
Intrinsic Value $315.83
Latest Price $179.62
Relative Value 43% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 16.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.711 0.659
2024 0.828 0.711
2025 0.964 0.767
2026 1.12 0.827
2027 1.31 0.893
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 22.5 billion. This corresponds to a present value of 14.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.86 billion. Adding in the terminal value gives a total present value of 18.1 billion.

There are presently 57.4 million outstanding shares, so the intrinsic value per share is 315.83.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,557,790,000
Current Cash 197,150,000
Current Liabilities 852,897,000
Current Debt 93,483,000
Non-Cash Working Capital (NCWC) 601,226,000
Change in NCWC 207,766,000
EBIT 624,124,000
Tax Provision 120,603,000
Depreciation and Amortization 78,059,000
Capital Expenditure -71,883,000
Unlevered Free Cash Flow 711,096,029
Current Assets 1,289,593,000
Current Cash 192,958,000
Current Liabilities 755,905,000
Current Debt 52,730,000
Non-Cash Working Capital (NCWC) 393,460,000
Change in NCWC 85,111,000
EBIT 471,496,000
Tax Provision 48,418,000
Depreciation and Amortization 81,146,000
Capital Expenditure -62,531,000
Unlevered Free Cash Flow 504,978,819
Current Assets 1,112,343,000
Current Cash 257,279,000
Current Liabilities 549,449,000
Current Debt 2,734,000
Non-Cash Working Capital (NCWC) 308,349,000
Change in NCWC -39,503,000
EBIT 327,539,000
Tax Provision 57,896,000
Depreciation and Amortization 80,492,000
Capital Expenditure -59,201,000
Unlevered Free Cash Flow 237,507,586
Current Assets 1,075,581,000
Current Cash 199,563,000
Current Liabilities 563,135,000
Current Debt 34,969,000
Non-Cash Working Capital (NCWC) 347,852,000
Change in NCWC 6,973,000
EBIT 386,098,000
Tax Provision 75,410,000
Depreciation and Amortization 81,487,000
Capital Expenditure -69,615,000
Unlevered Free Cash Flow 325,930,236
Current Assets 1,237,799,000
Current Cash 358,849,000
Current Liabilities 538,182,000
Current Debt 111,000
Non-Cash Working Capital (NCWC) 340,879,000
Change in NCWC -292,000
EBIT 400,824,000
Tax Provision 81,667,000
Depreciation and Amortization 72,346,000
Capital Expenditure -71,246,000
Unlevered Free Cash Flow 312,839,905
Current Assets 1,373,608,000
Current Cash 505,826,000
Current Liabilities 528,742,000
Current Debt 2,131,000
Non-Cash Working Capital (NCWC) 341,171,000
Change in NCWC 101,775,000
EBIT 345,543,000
Tax Provision 118,761,000
Depreciation and Amortization 68,115,000
Capital Expenditure -61,656,000
Unlevered Free Cash Flow 341,726,212
Current Assets 1,043,713,000
Current Cash 418,099,000
Current Liabilities 388,107,000
Current Debt 1,889,000
Non-Cash Working Capital (NCWC) 239,396,000
Change in NCWC -26,572,000
EBIT 325,550,000
Tax Provision 79,015,000
Depreciation and Amortization 65,073,000
Capital Expenditure -49,877,000
Unlevered Free Cash Flow 221,439,875
Current Assets 935,995,000
Current Cash 304,183,000
Current Liabilities 370,122,000
Current Debt 4,278,000
Non-Cash Working Capital (NCWC) 265,968,000
Change in NCWC -130,077,000
EBIT 347,411,000
Tax Provision 42,375,000
Depreciation and Amortization 64,007,000
Capital Expenditure -50,507,000
Unlevered Free Cash Flow 144,128,061
Current Assets 1,098,677,000
Current Cash 278,379,000
Current Liabilities 492,419,000
Current Debt 68,166,000
Non-Cash Working Capital (NCWC) 396,045,000
Change in NCWC 6,716,000
EBIT 409,212,000
Tax Provision 121,933,000
Depreciation and Amortization 69,607,000
Capital Expenditure -72,990,000
Unlevered Free Cash Flow 279,775,652
Current Assets 1,130,775,000
Current Cash 299,825,000
Current Liabilities 456,917,000
Current Debt 15,296,000
Non-Cash Working Capital (NCWC) 389,329,000
Change in NCWC -35,432,000
EBIT 420,254,000
Tax Provision 124,754,000
Depreciation and Amortization 68,883,000
Capital Expenditure -76,015,000
Unlevered Free Cash Flow 251,793,732
Current Assets 1,132,816,000
Current Cash 286,464,000
Current Liabilities 440,267,000
Current Debt 18,676,000
Non-Cash Working Capital (NCWC) 424,761,000
Change in NCWC -63,784,000
EBIT 376,442,000
Tax Provision 112,354,000
Depreciation and Amortization 65,334,000
Capital Expenditure -52,715,000
Unlevered Free Cash Flow 210,833,824

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