Discounted Cash Flow

Lincoln Electric Holdings Inc.

LECO · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $2.3b $198.4m $253.5m 8.7% $2.94
2017 $2.6b (15.4%) $247.5m (24.8%) $273.2m (7.8%) 9.4% (8.1%) $3.76 (27.9%)
2018 $3.0b (15.4%) $287.1m (16.0%) $257.9m (-5.6%) 9.5% (0.5%) $4.42 (17.6%)
2019 $3.0b (-0.8%) $293.1m (2.1%) $333.6m (29.3%) 9.8% (3.0%) $4.73 (7.0%)
2020 $2.7b (-11.6%) $206.1m (-29.7%) $292.2m (-12.4%) 7.8% (-20.5%) $3.46 (-26.8%)
2021 $3.2b (21.8%) $276.5m (34.1%) $302.5m (3.5%) 8.5% (10.1%) $4.66 (34.7%)
2022 $3.8b (16.3%) $472.2m (70.8%) $311.5m (3.0%) 12.6% (46.9%) $8.14 (74.7%)
2023 $4.2b (11.4%) $545.2m (15.5%) $576.6m (85.1%) 13.0% (3.6%) $9.50 (16.7%)
2024 $4.0b (-4.4%) $466.1m (-14.5%) $482.4m (-16.3%) 11.6% (-10.6%) $8.23 (-13.4%)
2025 $4.2b (5.6%) $520.5m (11.7%) $534.2m (10.7%) 12.3% (5.8%) $9.39 (14.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model