Chemicals - Specialty · NASDAQ
Current Price
$504.71
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Linde plc with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Linde plc operates as an industrial gas and engineering company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. It offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. The company also designs and constructs turnkey process plants for third-party customers, as well as for the gas businesses in various locations, such as olefin, natural gas, air separation, hydrogen, and synthesis gas plants. It serves a range of industries, including healthcare, energy, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment. The company was founded in 1879 and is based in Woking, the United Kingdom.
ROIC (TTM)
9.0%
ROE (TTM)
18.1%
FCF Yield
2.18%
Based on trailing twelve-month data, LIN shows a free cash flow per share of N/A and a ROIC of 9.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.18% are important context metrics when evaluating LIN's stock valuation relative to peers.
The intrinsic value of LIN depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether LIN is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $504.71. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Linde plc: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Chemicals - Specialty industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting LIN's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Linde plc, this means projecting how much free cash flow the Chemicals - Specialty will produce over the next 5-10 years, then discounting those amounts to today's dollars. LIN's ROIC of 9.0% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For LIN, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
