Linde plc (LIN) Stock Valuation — DCF Analysis
Chemicals - Specialty · NASDAQ
Current Price
$523.57
Intrinsic Value
$366.45
-42.9% margin of safety
COMPETITIVE MOAT
↑Global Industrial Gas Leader
Linde's extensive global network of production facilities and distribution infrastructure creates significant barriers to entry for competitors. This scale allows for cost efficiencies and reliable supply to diverse industries.
↑Essential Product Demand
Industrial gases are critical inputs for numerous essential industries, including healthcare, manufacturing, and food processing. This consistent demand provides a stable revenue base, even during economic downturns.
↑Technological Expertise
Linde possesses deep technical expertise in gas production, application, and engineering. This allows them to offer specialized solutions and maintain a competitive edge through innovation and efficiency.
INVESTMENT RISKS
↓Capital Intensity
The industrial gas business requires substantial capital investment for plant construction and maintenance. This can strain financial resources and limit expansion opportunities.
↓Energy Price Volatility
Energy is a significant cost component for industrial gas production. Fluctuations in energy prices can directly impact profitability and pricing power.
↓Regulatory Environment
Linde operates in a highly regulated industry, facing environmental and safety standards. Changes in regulations could increase compliance costs or restrict operations.
Base case
LIN base case valuation
A base case discounted cash flow model for LIN estimates an intrinsic value of about $366.45 per share, against a current price of $523.57. The model assumes 8.8% annual free cash flow growth, a 10.0% discount rate, and a 30x exit multiple.
Intrinsic Value
$366.45
Margin of safety
-42.9%
Expected annual return
-6.9%
Base case assumptions: 8.8% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the LIN valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Linde plc respond.
Open DCF Calculator for LINCompany Overview
Linde plc functions as a global industrial gas and engineering powerhouse, extending its operations throughout North and South America, Europe, the Middle East, Africa, and the Asia Pacific. The company's comprehensive product line features atmospheric gases like oxygen, nitrogen, argon, and various rare gases, alongside a diverse array of process gases such as carbon dioxide, helium, hydrogen, specialized electronic gases, and acetylene. Beyond gas supply, Linde is also adept at designing and constructing turnkey process plants. These engineering solutions serve both third-party customers and its own gas business facilities, covering types like olefin, natural gas, air separation, hydrogen, and synthesis gas plants. Linde's extensive client base spans numerous sectors, including healthcare, energy, general manufacturing, food and beverage carbonation, fiber-optics, steel production, aerospace, chemicals, and water treatment. Established in 1879, the company is headquartered in Woking, United Kingdom.
Financial Metrics — LIN Stock Valuation Data
Revenue/Share (TTM)
$74.68
FCF/Share (TTM)
$10.98
ROIC (TTM)
10.1%
ROE (TTM)
18.5%
P/FCF
47.5x
EV/EBITDA
21.5x
FCF Yield
2.10%
Debt/Equity
0.68x
Based on trailing twelve-month data, LIN shows a free cash flow per share of $10.98 and a ROIC of 10.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 47.5x and FCF yield of 2.10% are important context metrics when evaluating LIN's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of LIN?
Linde plc currently generates $10.98 in free cash flow per share. At the current price of $523.57, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is LIN undervalued?
LIN trades at a P/FCF ratio of 47.5x with a free cash flow yield of 2.10%. This elevated P/FCF suggests the market is pricing in significant future growth. However, whether LIN is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value LIN stock using DCF?
To perform a DCF valuation on Linde plc: (1) Start with the trailing free cash flow per share ($10.98) 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 — with a debt-to-equity of 0.68x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to LIN?
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 company will produce over the next 5-10 years, shaped by Chemicals - Specialty trends, then discounting those amounts to today's dollars. LIN's ROIC of 10.1% shows moderate capital returns.
How does WACC affect LIN stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For LIN, with a debt-to-equity ratio of 0.68x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 21.5x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See LIN PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Basic Materials valuationsDCF and P/E value LIN with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.