Lincoln Electric Holdings Inc (LECO) is overvalued and Timken Co (TKR) is overvalued.
Both trade above our estimate of their intrinsic value. TKR is the closer of the two: -24%, against -40% for LECO.
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 9.4% (average of 3 methods) values the shares at $93.09; the price of $115.52 is 24% above that value, and 74% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | LECO | TKR |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $262.99 | $115.52 |
| Intrinsic value | $187.86 | $93.09 |
| Margin of safety | -40% | -24% |
| Leak Score | 59/100 (3/12) | 14/100 (3/12) |
| Market cap | $14.3B | $8.0B |
| Revenue growth, 5 years | 9.8% | 5.5% |
| Operating margin | 17.6% | 15.0% |
| Net margin | 12.4% | 5.4% |
| Return on equity | 37.7% | 8.2% |
| Debt to equity | 0.80 | 0.69 |
| P/E | 26.3x | 31.3x |
| Forward P/E | 21.0x | 15.8x |
| P/B | 9.2x | 2.5x |
| Dividend yield | 1.2% | 1.2% |