Lincoln Electric Holdings Inc (LECO) is overvalued and RBC Bearings Inc (RBC) is overvalued.
Both trade above our estimate of their intrinsic value. LECO is the closer of the two: -40%, against -74% for RBC.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.3% (average of 3 methods) values the shares at $187.86; the price of $262.99 is 40% above that value, and 72% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 11.0% (average of 3 methods) values the shares at $287.23; the price of $499.88 is 74% above that value, and 71% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | LECO | RBC |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $262.99 | $499.88 |
| Intrinsic value | $187.86 | $287.23 |
| Margin of safety | -40% | -74% |
| Leak Score | 59/100 (3/12) | 27/100 (3/12) |
| Market cap | $14.3B | $15.8B |
| Revenue growth, 5 years | 9.8% | 25.2% |
| Operating margin | 17.6% | 25.2% |
| Net margin | 12.4% | 16.4% |
| Return on equity | 37.7% | 9.8% |
| Debt to equity | 0.80 | 0.25 |
| P/E | 26.3x | 49.4x |
| Forward P/E | 21.0x | 30.0x |
| P/B | 9.2x | 4.6x |
| Dividend yield | 1.2% | — |