Carpenter Technology Corp (CRS) is overvalued and ESAB Corp (ESAB) is slightly overvalued.
Both trade above our estimate of their intrinsic value. ESAB is the closer of the two: -13%, against -112% for CRS.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.7% (average of 3 methods) values the shares at $188.36; the price of $400.02 is 112% above that value, and 71% of that value comes from beyond year five.
Leak Score 65/100 on 10 of 12 signals
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $60.32; the price of $68.44 is 13% above that value, and 78% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | CRS | ESAB |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $400.02 | $68.44 |
| Intrinsic value | $188.36 | $60.32 |
| Margin of safety | -112% | -13% |
| Leak Score | 65/100 (10/12) | 14/100 (3/12) |
| Market cap | $19.8B | $4.3B |
| Revenue growth, 5 years | 16.2% | 7.8% |
| Operating margin | 22.5% | 14.2% |
| Net margin | 16.9% | 5.7% |
| Return on equity | 25.7% | 8.6% |
| Debt to equity | 0.33 | 1.00 |
| P/E | 38.0x | 24.6x |
| Forward P/E | 25.1x | 10.7x |
| P/B | 8.9x | 1.8x |
| Dividend yield | 0.2% | 0.3% |