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    ESAB (NYSE:ESAB) Valuation Check After Strong Q3 Beat, Raised Guidance and New AI-Focused Board Appointment

    Simply Wall St·12/07/2025 17:11:27
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    ESAB (ESAB) just delivered stronger than expected third quarter results, raised its full year outlook, and added AI specialist Dr. Sébastien Martin to its board. This combination sharpens the stock’s long term execution story.

    See our latest analysis for ESAB.

    Even with today’s solid update and dividend declaration, the stock has lost ground recently, with a year to date share price return of negative 6.5 percent and a one year total shareholder return of negative 13.6 percent. However, the three year total shareholder return of about 140 percent shows the longer term momentum story is still very much intact.

    If ESAB’s mix of industrial execution and smarter technology has your attention, it might be a good moment to widen your search and explore fast growing stocks with high insider ownership.

    With earnings surprising to the upside, guidance moving higher, and the share price still lagging analyst targets, investors now face a key question: is ESAB quietly undervalued, or are markets already pricing in its next wave of growth?

    Most Popular Narrative Narrative: 21.8% Undervalued

    With the most followed narrative pointing to a fair value meaningfully above the last close of $110.65, ESAB’s long term upside case leans heavily on sustained growth and margin gains.

    ESAB is positioned to benefit from rising global infrastructure investment and energy project activity, particularly in high-growth markets like Asia-Pacific and the Middle East. Recent wins and acquisitions in these regions are supporting robust volume growth and higher EBITDA margins, indicating stronger future revenue and earnings potential as these long-term demand drivers persist.

    Read the complete narrative.

    Curious how moderate revenue growth, expanding margins, and a rich future earnings multiple can still add up to this ambitious fair value? The narrative connects them in a way traditional machinery valuations rarely do, and the specific assumptions behind that leap are anything but vanilla.

    Result: Fair Value of $141.55 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this bullish view could be challenged if trade tensions deepen or emerging market volatility undermines ESAB’s automation demand and margin expansion trajectory.

    Find out about the key risks to this ESAB narrative.

    Build Your Own ESAB Narrative

    If you see the story differently or simply want to stress test the assumptions yourself, you can build a personalized view in just minutes: Do it your way.

    A great starting point for your ESAB research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.