Linde plc (LIN) Intrinsic Value & DCF Valuation
Chemicals - Specialty · NASDAQ
Current Price
$483.98
Intrinsic Value
$359.94
-34.5% margin of safety
What Is Linde plc's Intrinsic Value?
As of 2026-10-07, the base-case DCF model estimates the intrinsic value of Linde plc (LIN) at $359.94 per share, compared with a market price of $483.98, a margin of safety of -34.5%. The base case assumes 9.0% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $301.89 to $425.86. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Linde plc (LIN) Undervalued?
At the current price of $483.98, LIN trades above the base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Global Scale and Infrastructure
Linde operates a vast network of production facilities and distribution channels worldwide. This extensive infrastructure creates significant barriers to entry for new competitors.
↑Technological Expertise and Patents
The company possesses deep technical knowledge in gas production and application technologies. Proprietary processes and patents provide a competitive edge and drive innovation.
↑Long-Term Customer Contracts
Linde secures business through long-term supply agreements with major industrial clients. These contracts create stable, recurring revenue streams and high switching costs for customers.
INVESTMENT RISKS
↓Capital Intensity and Project Execution
The industrial gas industry requires substantial capital investment. Delays or cost overruns in large projects can negatively impact financial performance and returns.
↓Economic Sensitivity and Cyclicality
Demand for industrial gases is tied to the health of manufacturing and other industrial sectors. Economic downturns can lead to reduced volumes and revenue.
↓Regulatory and Environmental Scrutiny
Linde operates in a highly regulated industry with stringent environmental standards. Changes in regulations or increased compliance costs could impact operations and profitability.
Base case
LIN base case valuation
Intrinsic Value
$359.94
Margin of safety
-34.5%
Expected annual return
-5.7%
Base case assumptions: 9.0% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-10-07.
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)
$76.64
FCF/Share (TTM)
$10.76
ROIC (TTM)
9.4%
ROE (TTM)
18.8%
P/FCF
45.0x
EV/EBITDA
18.4x
FCF Yield
2.22%
Debt/Equity
0.72x
On a trailing twelve-month basis, LIN generates free cash flow per share of $10.76 alongside a ROIC of 9.4%, both central inputs for a DCF valuation. Its P/FCF ratio of 45.0x and FCF yield of 2.22% then frame how LIN is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of LIN?
Linde plc currently generates $10.76 in free cash flow per share. At the current price of $483.98, 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 45.0x with a free cash flow yield of 2.22%. A high P/FCF means investors are paying more per dollar of free cash flow, which usually reflects expectations of 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 ($10.76) 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 0.72x, 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 9.4% 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 0.72x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 18.4x, 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 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.