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Lincoln Electric HoldingsLECO +0.41%98 Graham Number is $51.21 as of Mar. 2026, which is 1140% above its 10-year median of 4.13. GuruFocus rates LECO with a GF Score™ of 98/100 and a GF Value™ of $238.42 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,201 Industrial Products companies, Lincoln Electric Holdings ranks worse than 86.73% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
The historical rank and industry rank for Lincoln Electric Holdings's Graham Number or its related term are showing as below:
LECO'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.41 Med: 4.13 Max: 6.53
Current: 4.89
During the past 13 years, the highest Price to Graham Number ratio of Lincoln Electric Holdings was 6.53. The lowest was 2.41. And the median was 4.13.
LECO's Price-to-Graham-Number is ranked worse than 86.73% of 2201
companies
in the Industrial Products industry
Industry Median: 1.7
vs LECO: 4.89
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Lincoln Electric Holdings (NAS:LECO) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Lincoln Electric Holdings's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
250.39
/
51.21
=
4.89
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Lincoln Electric Holdings Graham Number Related Terms
Lincoln Electric Holdings Graham Number Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Tools & Accessories subindustry, Lincoln Electric Holdings's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lincoln Electric Holdings Price-to-Graham-Number vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lincoln Electric Holdings's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Lincoln Electric Holdings's Price-to-Graham-Number falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lincoln Electric Holdings (LECO) has a Graham Number of $51.21 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Lincoln Electric Holdings and its competitors. This is 1140% above median its historical median of 4.13. Over the past decade, Lincoln Electric Holdings' Graham Number has ranged from 2.41 to 6.53. According to the industry distribution chart, Lincoln Electric Holdings ranks #1909 out of 2201 companies in the Industrial Products industry, placing it in the top 86.7%.
Is Lincoln Electric Holdings' Graham Number too high?
Lincoln Electric Holdings' current Graham Number of $51.21 is 1140% above median its 10-year median of 4.13. Over the past 10 years, this metric has ranged from a low of 2.41 to a high of 6.53. The Industrial Products industry median Graham Number is 1.70. Lincoln Electric Holdings' value of $51.21 is 2912.4% above this industry median. Based on the distribution chart, Lincoln Electric Holdings ranks #1909 out of 2201 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Lincoln Electric Holdings has a GF Score™ of 98/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lincoln Electric Holdings' Graham Number compare to SWK and TKR?
According to the Industrial Products industry distribution chart, Lincoln Electric Holdings ranks #1909 out of 2201 companies for Graham Number. This places Lincoln Electric Holdings in the lower half of its industry. The industry median Graham Number is 1.70. Lincoln Electric Holdings' value of $51.21 is 2912.4% above this benchmark. Historically, Lincoln Electric Holdings' own Graham Number has ranged from 2.41 to 6.53 over the past decade. While the company's 10-year median is 4.13 vs. the industry median of 1.70, Lincoln Electric Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for an Industrial Products company?
The median Graham Number among Industrial Products companies is 1.70, based on 2,201 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lincoln Electric Holdings's current Graham Number of $51.21 is 2912.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Lincoln Electric Holdings and its competitors. For the Industrial Products industry, the median Graham Number is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln Electric Holdings's current Graham Number is $51.21, which is 1140% above median its own 10-year median of 4.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lincoln Electric Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lincoln Electric Holdings (LECO) is currently considered Fairly Valued. The stock's GF Value™ is $238.42, compared to a current price of $250.39 — trading 5% above its estimated fair value. The current Graham Number is $51.21, which is 1140% above median its 10-year median of 4.13 and 2912.4% above the Industrial Products industry median of 1.70. Lincoln Electric Holdings' overall GF Score™ is 98/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Lincoln Electric Holdings (LECO), the current Graham Number is $51.21 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lincoln Electric Holdings (LECO) Overvalued in 2026?
Based on GuruFocus' analysis, Lincoln Electric Holdings stock appears to be overvalued.
The current stock price of $250.39 is trading 5% above its estimated GF Value™ of $238.42.
GuruFocus considers Lincoln Electric Holdings to be Fairly Valued.
Key valuation signals for LECO:
Graham Number: $51.21 (1140% above median its 10-year median of 4.13)
GF Value™: $238.42 vs. price of $250.39 (5% above fair value)
Industry Position: 2912.4% above the Industrial Products median (#1909 of 2201)
No single metric tells the full story. See the LECO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lincoln Electric is a leading manufacturer of welding, cutting, and brazing products. Its portfolio includes arc-welding solutions, plasma and oxy-fuel cutting systems, brazing and soldering alloys, and automation solutions. Lincoln Electric serves clients across general fabrication, heavy industries, automotive, construction, shipbuilding, energy, and process industries, among others. The company generated roughly $4.2 billion in sales in 2025.
98GF Score
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