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Espey Mfg. & Electronics Corp (ESP) Fair Value & Analysis

Industrials · US · Market cap $183M

EM Espey Mfg. & Electronics Corp logo Espey Mfg. & Electronics Corp ESP · US
Price$61.92
Fair Value$46.21
Upside-25.4%
Quality61/100
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Healthy Growth
Highly profitable · 25.5% net margin
Low debt · generates free cash flow
2.95% dividend yield
Ranks above peers (10/14)
Wide moat 75/100
Evidence: High Range $34.65 – $57.76 Share as image

Fair value as of: Jul 16, 2026

From 24 valuation models · updated 26 days ago

Fair value updated Jul 16, 2026, revised from $52.41 to $46.21 (−11.8%) since Jun 24, 2026. Share price +3.3% over the past month.

A solid business, but screening 25% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($57.76). The favourable scenario is already priced in.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$71.92 $11.36 Fair Value $46.21 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $11.36 – $71.92 · fair‑value band $34.65 – $57.76 · the $61.92 price screens above the $46.21 fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Espey Mfg. & Electronics Corp (ESP) currently trades at $61.92, while our model-based Fair Value estimate is $46.21, implying the stock looks roughly 25.4% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Espey Mfg. & Electronics Corp generated revenue of $42.2M at a net margin of 25.5%. Revenue grew 10.9% year over year. It earns a return on equity of 21.0%. The balance sheet holds a net cash position of $18.9M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $34.65 (bear case) to $57.76 (bull case); at $61.92, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 74% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -25%, ESP screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF $51.34 $64.85 $80.21 80
Residual Income $15.64 $18.87 $36.94 76
Rev-Margin DCF $35.81 $46.51 $58.72 74
All 24 models by family
DCF Models
FCF DCF $51.05 $66.37 $84.75 38
Owner Earnings $17.68 $21.58 $26.25 31
5Y Revenue Exit $35.81 $45.66 $57.32 39
5Y EBITDA Exit $39.76 $52.84 $67.25 41
5Y P/E Exit $47.00 $66.01 $85.16 38
10Y Revenue Exit $41.90 $51.42 $62.68 36
10Y EBITDA Exit $44.43 $55.62 $68.99 37
10Y P/E Exit $48.34 $63.32 $80.37 35
Earnings-Based
Graham-Dodd $18.48 $50.23 $65.84 54
Lynch FV $9.89 $14.13 $18.37 50
PEG = 1.0 $9.89 $14.13 $18.37 46
EPV $21.89 $23.76 $25.28 59
Multiples
P/E Multiple $42.81 $57.08 $71.35 63
P/S Multiple $22.01 $29.34 $36.68 58
P/B Multiple $34.65 $46.21 $57.76 55
EV/EBIT $40.88 $52.41 $63.94 53
EV/EBITDA $34.21 $43.52 $52.82 54
EV/Revenue $24.78 $32.70 $40.62 43
Asset-Based
NCAV (Graham) $8.49 $11.37 $16.97 50
Growth DCF
Growth DCF $51.34 $64.85 $80.21 80
Rev-Margin DCF $35.81 $46.51 $58.72 74
Economic Profit
Residual Income $15.64 $18.87 $36.94 76
ROIC Compounder $22.42 $25.17 $27.98 72
Growth Earnings
Growth-Adj P/E $33.85 $48.35 $62.86 68

Widest divergence: DCF Models ($52.84) versus Asset-Based ($11.37). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $42.2M
Revenue growth (YoY) +10.9%
Net margin 25.5%
Return on equity 21.0%
Free cash flow $16.6M FY2025
P/E ratio 16.0
More key figures
Operating margin 26.1%
EPS (TTM) $3.81
Dividend yield 3.0%
EPS growth (YoY) +57.1%
Net cash $18.9M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 64 · Market factors (momentum, volatility) 61

Profitability 54
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 93
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 24
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 32
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Espey Mfg. & Electronics Corp. manufactures and sells electronic equipment primarily for military and industrial applications in the United States and internationally.

Full company description

Espey Mfg. & Electronics Corp. manufactures and sells electronic equipment primarily for military and industrial applications in the United States and internationally. Its principal products include power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, UPS systems, and antennas for use in AC and DC locomotives, shipboard power and radar, airborne power, ground-based radar, and ground mobile power applications. The company also provides various services, such as design and development to specification, build to print, design services, design studies, environmental testing services, metal fabrication, and painting services, as well as automatic testing equipment development services. In addition, it produces individual components, which include inductors, as well as paints, wires, qualifies, and test items; populates printed circuit boards; and fabricates metalwork. The company serves industrial manufacturers and defense companies, the government of the United States, foreign governments, and foreign electronic equipment companies through its direct sales organization and outside sales representatives. Espey Mfg. & Electronics Corp. was incorporated in 1928 and is based in Saratoga Springs, New York.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Espey Mfg. & Electronics Corp reported revenue of $44.0M in FY2025 versus $27.7M in FY2021, a compound +12.2%/yr. Reported net income was $8.1M in FY2025.

Growth Quality 83/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$44.0M
Latest YoY
+13.5%
Avg. growth/yr (3Y) 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.
+11.0%
Avg. growth/yr (5Y) 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.
+6.9%
Avg. growth/yr (39Y) 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.
+3.0%
Revenue +12.2%/yr
FY21 $27.7M
FY22 $32.1M
FY23 $35.6M
FY24 $38.7M
FY25 $44.0M
Net income
FY21 −$182K
FY22 $1.3M
FY23 $3.7M
FY24 $5.8M
FY25 $8.1M
Character of growth · EPS growth decomposed (2014-2025) +8.5 % p.a.
Revenue per share +2.9 pp

of which total revenue +4.2 pp · buybacks/dilution −1.3 pp

EBIT margin +2.9 pp
Tax rate +1.3 pp
Residual (interest, one-offs) +1.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

ESP screens 25% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Espey Mfg. & Electronics Corp Fair Value". https://www.fairvalue-calculator.com/stock/ESP

Peer Group

Electrical Equipment & Parts · 530 stocks

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.

Quality Score 61 · Above median
Fair Value upside −25% · Above median
Return on equity (TTM) 21% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 26% · Top 25%
Operating margin (TTM) 26% · Top 25%
Revenue growth 11% · Below median
Dividend yield (TTM) 3.0% · Top 25%

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 16.0× · Cheaper than 75% of peers
P/B 3.59× · Pricier than median
P/S (TTM) 4.32× · Pricier than 75% of peers
P/FCF 11.0× · Pricier than 75% of peers
EV/EBITDA 14.6× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 55 · sector 57
PAST 84 · sector 26
HEALTH 100 · sector 97
DIVIDEND 59 · sector 19

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 10.16 SGD 1.47 SGD -86%
LG Energy Solution, Ltd 373220 334,000 KRW 201,455 KRW -40%
WEG S.A WEGE3 13,210 ARS 7,948 ARS -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%

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Frequently asked questions

Is Espey Mfg. & Electronics Corp (ESP) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $46.21 versus a price of $61.92, about −25% (overvalued).
What is the fair value of ESP?
Our model-based fair value for Espey Mfg. & Electronics Corp is $46.21 (as of Jul 16, 2026), built from audited fundamentals. The current price is $61.92.
What is the quality score of ESP?
Espey Mfg. & Electronics Corp has a Quality Score of 61/100. 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 revenue of Espey Mfg. & Electronics Corp (ESP)?
Espey Mfg. & Electronics Corp reported trailing-twelve-month revenue of about $42.2M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of ESP?
The net profit margin of Espey Mfg. & Electronics Corp is about 25.5%, meaning it keeps roughly 25.5% of revenue as net income. Based on the latest reported figures.
Does Espey Mfg. & Electronics Corp pay a dividend?
Espey Mfg. & Electronics Corp currently shows a dividend yield of about 2.95% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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