Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.06%, lower than industry average of 8.49%.

Growth Trajectory

Profitability

In the growth phase company makes 25.32% profit on every dollar of sales, higher than industry average of 10.57%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.03% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
90.74B USD
Equity Value
68.21B USD
FCF Yield
32.77%
Average ROIC
12.53%
Cost of Capital
9.59%
P/E Ratio
30.89x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues33.24B USD33.01B USD
Operating Income or EBIT9.33B USD9.09B USD
Interest Expense479M USD487M USD
Book Value Of Equity38.52B USD38.09B USD
Book Value Of Debt25.92B USD22.61B USD
Cash and Marketable Securities4.79B USD4.85B USD
Number of Shares Outstanding468.91M--
Minority interests1.40B USD0 USD
Current Stock Price473.44 USD--
Effective Tax Rate23.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-7.76%
0.72%Company
vs
8.49%Industry
Below Industry
Operating Margin
+17.50%
28.06%Company
vs
10.56%Industry
Above Industry
Linde plc demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 55% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 50.20B USD Add
Present Value (Cash Flow Over Next 10 Years) 40.54B USD Add
Value of Operating Assets 90.74B USD Sub-total
Debt 25.92B USD Subtract
Minority Interests 1.39B USD Subtract
Cash 4.78B USD Add
Value of Equity 68.21B USD Sub-total
Number of Shares 468.91M shares Divisor
Estimated Value per Share (Fair Value) 145.47 USD Total
Current Market Price 473.44 USD Reference

Financial Projections

Total FCF Present Value
40.54B USD
Avg Revenue Growth
5.53%
Avg Operating Margin
24.70%
Avg ROIC
12.53%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue35.12B USD37.60B USD40.25B USD43.09B USD46.14B USD49.17B USD52.16B USD55.07B USD57.88B USD60.54B USD63.33B USD
Growth Rate 5.63% 7.06% 7.06% 7.06% 7.06% 6.57% 6.07% 5.58% 5.09% 4.59% 4.59%
PROFITABILITY
Operating Income9.85B USD9.86B USD10.19B USD10.51B USD10.83B USD11.54B USD12.25B USD12.93B USD13.59B USD14.21B USD14.87B USD
Operating Margin 28.06% 26.23% 25.31% 24.40% 23.48% 23.48% 23.48% 23.48% 23.48% 23.48% 23.48%
EBIT (1-tax)7.59B USD7.59B USD7.84B USD8.09B USD8.34B USD8.84B USD9.33B USD9.80B USD10.24B USD10.66B USD11.15B USD
CASH FLOW
Reinvestment1.49B USD1.60B USD1.71B USD1.83B USD1.82B USD2.63B USD2.56B USD2.47B USD2.34B USD2.45B USD5.81B USD
Free Cash Flow6.09B USD5.99B USD6.13B USD6.26B USD6.51B USD6.21B USD6.76B USD7.33B USD7.90B USD8.20B USD5.34B USD
Terminal Value--------------------126.32B USD
Present Value5.53B USD4.95B USD4.60B USD4.27B USD4.04B USD3.50B USD3.48B USD3.45B USD3.41B USD3.26B USD—
EFFICIENCY
ROIC 12.72% 12.42% 12.50% 12.56% 12.58% 12.98% 13.19% 13.37% 13.52% 13.64% 8.83%
Cost of Capital 10.02% 10.02% 10.02% 10.02% 10.02% 9.78% 9.54% 9.30% 9.06% 8.83% 8.83%
Sales/Capital 1.65x 1.65x 1.65x 1.65x 1.65x 1.13x 1.13x 1.13x 1.13x 1.13x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)