Financial statement analysis and common stock valuation

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Linde plc reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Linde plc earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Common Stock Valuation Ratios

Relative valuation technique determine the value of Linde plc by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Linde plc suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Analysis of Solvency Ratios
Quarterly Data

Examines Linde plc capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Capital
• Debt to Assets
• Financial Leverage

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of Linde plc by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Linde plc cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Linde plc balance sheet.

Analysis of Reportable Segments

Linde plc operates in 4 segments: Americas; Europe, Middle East, and Africa (EMEA); Asia and South Pacific (APAC); and Engineering.

• Segment Profit Margin
• Segment Capital Expenditures to Depreciation
• Sales
• Depreciation and amortization
• Operating profit
• Expenditures for long-lived assets

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Linde plc generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Linde plc relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Analysis of Revenues

• Revenues as Reported

Income Statement

The income statement (statement of earnings) reports on the performance of Linde plc, the result of its operating activities.