Stock Analysis on Net

Linde plc (NASDAQ:LIN)

$24.99

Price to Operating Profit (P/OP)
since 2005

Microsoft Excel

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Calculation

Linde plc, P/OP, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Linde plc Annual Report.


The Price to Operating Profit (P/OP) ratio, calculated from the provided financial information, exhibits considerable fluctuation over the observed period from 2006 to 2026. Initially, the ratio demonstrated relative stability, followed by a period of increased volatility and a recent trend towards moderation.

Initial Period (2006-2008)
From 2006 to 2008, the P/OP ratio ranged between 13.01 and 14.77. This suggests a generally consistent valuation relative to operating profits during this timeframe. A slight increase is observed from 13.69 in 2006 to 14.77 in 2008.
Volatility and Decline (2009-2010)
A significant decrease in the P/OP ratio occurred in 2009, falling to 9.67, likely influenced by broader economic conditions. The ratio partially recovered in 2010, reaching 14.78, but remained within the range observed prior to the 2009 decline.
Moderate Fluctuations (2011-2015)
The period between 2011 and 2015 saw moderate fluctuations in the P/OP ratio, oscillating between 12.50 and 17.56. While variability existed, the ratio generally trended upwards, indicating increasing investor confidence or expectations regarding future operating profitability.
Increased Volatility and Peak (2016-2021)
From 2016, the P/OP ratio experienced increased volatility. It peaked in 2021 at 39.58, representing a substantial increase from previous years. This peak coincided with a period of significant growth in the share price and operating profit per share. The ratio reached 36.01 in 2020, indicating a substantial increase from the 12.50 observed in 2016.
Recent Moderation (2022-2026)
Following the peak in 2021, the P/OP ratio demonstrated a moderating trend, decreasing to 27.08 in 2023 and 26.40 in 2026. This suggests a potential recalibration of market valuation relative to operating profits, possibly reflecting changing investor sentiment or expectations of future growth. The ratio decreased from 29.87 in 2022 to 26.40 in 2026.

Overall, the P/OP ratio has shown a dynamic pattern over the analyzed period. While periods of stability and gradual increases were observed, significant volatility and a recent downward trend suggest a changing relationship between the company’s share price and its operating profitability.