Linde plc (LIN) Stock Valuation — PE Analysis
Chemicals - Specialty · NASDAQ
Current Price
$523.57
PE Ratio (TTM)
34.1x
Intrinsic Value
$568.42
+7.9% 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 PE valuation
A base case PE valuation for LIN estimates a fair value of about $568.42 per share, against a current price of $523.57. The model assumes 8.8% annual earnings growth, a 34x target PE multiple, and a 10% discount rate.
Intrinsic Value
$568.42
Margin of safety
+7.9%
Expected annual return
+1.7%
Base case assumptions: 8.8% annual earnings growth, 34x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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)
34.1x
PEG Ratio
3.60
Earnings Yield
2.93%
ROE (TTM)
18.5%
Revenue/Share (TTM)
$74.68
Dividend Yield
1.18%
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 34.1x combined with a PEG ratio of 3.60 provides a growth-adjusted perspective. A PEG above 2.0 suggests LIN may be richly valued even accounting for growth. 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 (34.1x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (3.60) 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 3.60, calculated by dividing the PE ratio (34.1x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.