Lincoln Electric Holdings Inc (LECO) is overvalued and Toro Co (TTC) is overvalued.
Both trade above our estimate of their intrinsic value. TTC is the closer of the two: -35%, 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 8.5% (average of 3 methods) values the shares at $69.82; the price of $94.52 is 35% above that value, and 78% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | LECO | TTC |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $262.99 | $94.52 |
| Intrinsic value | $187.86 | $69.82 |
| Margin of safety | -40% | -35% |
| Leak Score | 59/100 (3/12) | 59/100 (3/12) |
| Market cap | $14.3B | $8.9B |
| Revenue growth, 5 years | 9.8% | 6.0% |
| Operating margin | 17.6% | 11.3% |
| Net margin | 12.4% | 7.6% |
| Return on equity | 37.7% | 26.5% |
| Debt to equity | 0.80 | 0.81 |
| P/E | 26.3x | 25.3x |
| Forward P/E | 21.0x | 18.4x |
| P/B | 9.2x | 6.7x |
| Dividend yield | 1.2% | 1.7% |