ESCO Technologies Inc (ESE) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of ESCO Technologies Inc stock $109, price $230, that is 52.9% below the price, quality 67 out of 100. Rating: strongly overvalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
Our calculation puts a fair price 53% below what the stock costs today.
Quality 67/100
Healthy Growth(revenue 5y +8.4 %/yr in USD)
Solidly profitable · 24.4% net margin (TTM) · excl. one-off gain FY2025 14.3%
Low debt
Generates free cash flow
0.1% dividend yield · Well covered
Upbeat coverage
Broad data
Mixed vs. peers(6/15)
Wide moat66/100 · thin data
Fair value $108.62 · Strongly overvalued (−52.9%)
Risks from the AI analysis
🚩AI predictive maintenance could displace diagnostic testing🚩Emerging technologies and new entrants in RF testing🚩US government budget and policy shifts for A&D contracts
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $60.43 – $354.82 · fair‑value band $75.90 – $137.02 · the $230.41 price screens above the $108.62 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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ESCO Technologies Inc. provides engineered components and systems for aviation, navy, defense, and industrial customers.
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The Aerospace & Defense segment designs and manufactures specialty filtration products, including hydraulic filter elements and fluid control devices used in commercial and defense aerospace applications; miniature electro-explosive devices for military aircraft ejection seats and missile arming devices; manufactures and sells mission-critical bushings, pins, sleeves, and precision-tolerance machined components for landing gear, rotor heads, engine mounts, flight controls, and actuation systems for the aerospace and defense industries; designs, develops and manufactures elastomeric-based signature reduction solutions for U.S. naval vessels; and provides mission-critical signature and power management solutions.
The Utility Solutions Group segment develops, manufactures, and delivers diagnostic testing solutions; and designs and manufactures decision support tools for the renewable energy industry, primarily wind and solar.
The RF Test & Measurement segment designs and manufactures products and systems to measure and control RF energy for research and development, regulatory compliance, and medical and security applications; and turnkey systems, such as RF test facilities and measurement systems, acoustic test enclosures, RF and magnetically shielded rooms, and secure communication facilities.
This segment also supplies RF absorptive materials, filters, antennas, field probes, test cells, proprietary measurement software, and other test accessories; and offers calibration and product tests, feedthrough capacitors, high current power, telephone, data and control line filters, and high-altitude electromagnetic protection filters.
It distributes its products through distributors, sales representatives, direct sales teams, and in-house sales personnel. The company was incorporated in 1990 and is based in Saint Louis, Missouri.
Stock analysis
ESCO Technologies Inc (ESE) currently trades at $230.41, while our model-based Fair Value estimate is $108.62, 53% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $198.59 per share, and 1 of the 25 models we run sit above the $230.41 price.
Bear case: the Earnings-Based group reads lowest at $51.04, and 24 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $75.90 (bear) to $137.02 (bull), the price of $230.41 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 67/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
ESCO Technologies Inc reported revenue of $1.1B in FY2025 versus $715M in FY2021, a compound +11.2%/yr. Reported net income was $299M in FY2025, compounding +47.3%/yr from FY2021.
Key figures
Market cap $6.0B Mid · P/E ratio 42.7 · P/S ratio 11.7 · EPS (TTM) $5.39 · Dividend yield 0.1% · Net margin 27.3% · Return on equity 9.5% · Return on assets (EBIT) 6.9% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 66 out of 100 (low confidence).
What moves the price
The share trades about 35% below its 52-week high and 18% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −45% fair-value upside, at −53%, ESE screens richer than that median.
Fair Value models
Bear$75.90Fair Value $108.62Bull$137.02
Price $230.41 · Downside -52.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($5.07 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, no officer or director bought or sold shares on the open market.
SaleVinod M KhilnaniDirector3,216 shares at $218.40$702,364Nov 26, 2025
SaleBryan H SaylerCEO & PRESIDENT, Director9,783 shares at $220.00$2.2MNov 26, 2025
SaleRobert J PhillippyDirector3,700 shares at $222.53$823,370Nov 25, 2025
SaleDavid M SchatzSr. VP, Sec'y & Gen. Counsel2,498 shares at $225.65$563,674Nov 25, 2025
SaleChristopher L TuckerSr. Vice President & CFO5,000 shares at $220.15$1.1MNov 25, 2025
Plus one other filing such as a grant, option exercise or tax withholding. It is not a market purchase or sale.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+19.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.4%
Start year 2020 (pandemic). Over 10 years: +7.4% a year
Revenue growth 35 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.1%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+17.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.6%
Dividend (yield on the price)0.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.30.0% vs 21.7%, picking up
Profit margin 2019 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.15% → 16%
2025 sits 223% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes more growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+18.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+21.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +15.9% a year for the price and +18.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Solid financial returns stand as the main strength, while very limited evidence on qualitative moat factors and a one-off gain form the key weakness.
Main risk: AI-driven predictive maintenance and grid health platforms could reduce demand for the company's specialized diagnostic testing solutions in the utility segment.
Bull case: The company could integrate AI into its testing platforms to offer enhanced predictive services and expand its utility solutions portfolio.
Bear case: If AI platforms and new technologies gain traction, demand for traditional hardware testing products could decline sharply across utility and RF segments.
ESCO just closed its largest acquisition, folding Megger's utility testing business into its portfolio and funding most of the cash portion with a billion-dollar draw on new secured facilities. Leverage has risen sharply while a major seller now holds a sizable stake and board seat. Our models currently see the shares as overvalued following these shifts. Will the enlarged platform convert its record backlog into earnings growth that outpaces the higher interest costs and integration risks?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Scientific & Technical Instruments · 161 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is ESCO Technologies Inc (ESE) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $108.62 versus a price of $230.41, about 53% lower (overvalued).
What is the fair value of ESE?
Our model-based fair value for ESCO Technologies Inc is $108.62 (as of Nov 8, 2026), built from audited fundamentals. The current price: $230.41.
What is the quality score of ESE?
ESCO Technologies Inc has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for ESCO Technologies Inc (ESE)?
Our model-based price target is the fair value of $108.62 (as of Nov 8, 2026) from 25 valuation models. Cautious scenario $75.90, optimistic scenario $137.02. It is a calculation from audited fundamentals, not an analyst target.
What is the ESCO Technologies Inc stock forecast for 2026?
Our models put fair value at $108.62, about 53% lower versus a price of $230.41 (overvalued). Cautious scenario $75.90, optimistic scenario $137.02. The calculation is refreshed regularly with new filings.
What is the revenue of ESCO Technologies Inc (ESE)?
ESCO Technologies Inc reported trailing-twelve-month revenue of about $1.3B (latest available figure, as of Nov 8, 2026).
Does ESCO Technologies Inc pay a dividend?
ESCO Technologies Inc currently shows a dividend yield of 0.14% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of ESCO Technologies Inc (ESE) and when is the ex-dividend date?
ESCO Technologies Inc pays a dividend of $0.32 per share a year, a dividend yield of 0.1%. The last ex-dividend date was Oct 1, 2026. A dividend has been paid every year since 2009. The payout ratio is 11.4% of earnings (on adjusted earnings, reported 5.9%). Free cash flow covers the dividend 22.89 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into ESCO Technologies Inc (ESE)?
For today's price to be fair in a discounted-cash-flow model, ESCO Technologies Inc would have to grow free cash flow by +18.7 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.4 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of ESE use?
Our models discount ESCO Technologies Inc at 9.9 %: a base by market capitalisation (mid), damped by beta 1.05, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For ESCO Technologies Inc that is +18.7 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has ESCO Technologies Inc (ESE) delivered so far?
Over the past 5 years revenue at ESCO Technologies Inc grew +8.4 % a year. The price currently implies free-cash-flow growth of +18.7 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of ESCO Technologies Inc (ESE) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into ESCO Technologies Inc (+18.7 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of ESCO Technologies Inc (ESE)?
The free-cash-flow yield on the price is 3.17 %: that much free cash flow ESCO Technologies Inc produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of ESCO Technologies Inc (ESE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For ESCO Technologies Inc it is $108.62 per share (as of Nov 8, 2026), against a price of $230.41. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is ESCO Technologies Inc stock overvalued or undervalued in 2026?
As of Nov 8, 2026, ESE trades above its calculated fair value: price $230.41, fair value $108.62, a gap of about −53% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ESE?
No. The price is what the market pays today ($230.41); the fair value is what the company's own numbers justify ($108.62). For ESCO Technologies Inc the two are $121.79 per share apart. That gap is exactly why we show both numbers side by side.
How much is ESCO Technologies Inc worth?
The market values ESCO Technologies Inc at about $6.0B (market capitalisation, as of Nov 8, 2026). Per share that is $230.41; our models calculate a fair value of $108.62 per share.
What do the bullish and bearish scenarios say about ESE?
Our models span a range for ESCO Technologies Inc: cautious scenario $75.90, base $108.62, optimistic $137.02 per share (as of Nov 8, 2026, price $230.41). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ESE?
ESCO Technologies Inc trades at a price-to-earnings ratio of 42.7 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $108.62 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 38.2 (reported for FY2025: 19.9). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2025 ex one-offs: 27.6. Other multiples: PEG 1.7, P/B 3.9, P/S 4.6, EV/EBITDA 19.6.
What is the PEG ratio of ESE?
The PEG ratio of ESCO Technologies Inc is 1.67 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of ESCO Technologies Inc (ESE)?
Balance-sheet figures for ESCO Technologies Inc (as of Nov 8, 2026): return on equity 9.5%, debt of 0.11 per unit of equity. They feed the Quality Score of 67/100, which measures business quality independently of the share price.
How far is ESE from its 52-week high?
ESCO Technologies Inc trades at $230.41, about 35% below its 52-week high of $354.82 and 18% above the low of $195.21 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $108.62 is for.
Which stocks are comparable to ESCO Technologies Inc?
From the same area (Technology) we also value Keysight Technologies, Inc, Garmin Ltd, Coherent Corp, Teledyne Technologies Incorporated, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is ESCO Technologies Inc stock attractive at the current price?
The data as of Nov 8, 2026: price $230.41, calculated fair value $108.62 (−53%), Quality Score 67/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ESE calculated?
We run ESCO Technologies Inc through 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $108.62 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. ESCO Technologies Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of ESCO Technologies Inc (ESE)?
The closing price on Nov 6, 2026 was $230.41. Our model-based fair value is $108.62, about 53% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with ESCO Technologies Inc right now?
The price sits above even our optimistic bull case ($137.02). The favourable scenario is already priced in. Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($75.90 to $137.02) leaves room in how you read the outcome.
Where does the earnings growth of ESCO Technologies Inc (ESE) come from?
Earnings per share at ESCO Technologies Inc grew +21.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +6.6 %, EBIT margin +2.2 %, tax rate +4.1 %, residual (interest, one-offs) +6.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of ESCO Technologies Inc
How large is the market capitalisation of ESCO Technologies Inc (ESE)?
The market capitalisation of ESCO Technologies Inc is $6.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of ESCO Technologies Inc (ESE)?
The price-to-sales ratio of ESCO Technologies Inc is 11.7 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of ESCO Technologies Inc (ESE)?
Earnings per share at ESCO Technologies Inc are $5.39 (price ÷ EPS = P/E 42.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of ESCO Technologies Inc (ESE)?
The dividend yield of ESCO Technologies Inc is 0.1% (payout 11.4%, on adjusted earnings, reported 5.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of ESCO Technologies Inc (ESE)?
The net margin of ESCO Technologies Inc is 27.3% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of ESCO Technologies Inc (ESE)?
The return on equity (ROE) of ESCO Technologies Inc is 9.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of ESCO Technologies Inc (ESE)?
On an EBIT basis the return on assets of ESCO Technologies Inc is 6.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of ESCO Technologies Inc (ESE)?
The operating margin of ESCO Technologies Inc is 14.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at ESCO Technologies Inc (ESE)?
Revenue at ESCO Technologies Inc is growing +14.4% versus a year earlier (3y avg +8.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at ESCO Technologies Inc (ESE)?
Earnings per share at ESCO Technologies Inc are growing +24.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does ESCO Technologies Inc (ESE) carry?
The net debt of ESCO Technologies Inc is $129M (fiscal year 2025, ≈ 0.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 8, 2026