Linde plc (LIN) Stock Valuation — PE Analysis
Chemicals - Specialty · NASDAQ
Current Price
$511.17
PE Ratio (TTM)
33.8x
Intrinsic Value
$573.03
+10.8% margin of safety
COMPETITIVE MOAT
↑Global Scale and Infrastructure
Linde operates a vast global network of production facilities and distribution channels. This extensive infrastructure creates significant barriers to entry for new competitors.
↑Essential Product Demand
Industrial gases are critical inputs for numerous industries, including healthcare, manufacturing, and electronics. This consistent and essential demand provides a stable revenue base.
↑Technological Expertise and R&D
The company possesses deep technical knowledge in gas production and application technologies. Continuous investment in research and development allows for process optimization and new product offerings.
INVESTMENT RISKS
↓Regulatory and Environmental Scrutiny
The chemical industry faces increasing regulatory oversight regarding environmental impact and safety. Compliance costs and potential sanctions pose ongoing risks.
↓Competition in Emerging Technologies
While Linde is a leader, emerging technologies in hydrogen production and storage, like those from Bloom Energy and Plug Power, could disrupt traditional gas supply models.
↓Economic Downturns Impact Demand
A significant global economic slowdown could reduce industrial activity, thereby decreasing the demand for Linde's essential products.
Base case
LIN base case PE valuation
At a current price of $511.17, the base case PE valuation puts LIN fair value near $573.03 per share. That figure assumes 9.6% yearly earnings growth, a target PE multiple of 33x, and a 10% discount rate.
Intrinsic Value
$573.03
Margin of safety
+10.8%
Expected annual return
+2.3%
Base case assumptions: 9.6% annual earnings growth, 33x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the LIN PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Linde plc respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
33.8x
PEG Ratio
3.56
Earnings Yield
3.00%
ROE (TTM)
18.5%
Revenue/Share (TTM)
$74.68
Dividend Yield
1.21%
Debt/Equity
0.68x
Frequently Asked Questions
What is the PE ratio of LIN?
The trailing twelve-month PE ratio of LIN reflects how much investors pay per dollar of Linde plc's earnings. This metric is most useful when compared to Chemicals - Specialty peers and the company's own historical range.
Is LIN overvalued based on PE ratio?
LIN's PE of 33.8x combined with a PEG ratio of 3.56 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Chemicals - Specialty, a DCF analysis may be more appropriate.
How do I value LIN stock using PE ratio?
To value Linde plc using PE: (1) Compare the current PE (33.8x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (3.56) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of LIN?
LIN's PEG ratio is 3.56, calculated by dividing the PE ratio (33.8x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for LIN stock valuation?
PE ratio gives a quick relative read — how LIN is priced versus Chemicals - Specialty peers. DCF provides an absolute value based on projected free cash flows. For LIN, with a strong ROE of 18.5%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See LIN DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value LIN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.