Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Linde plc, EBITDA calculation
US$ in millions
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).
The financial performance indicators demonstrate a consistent upward trajectory over the five-year period. Net income, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) all exhibit growth from 2021 to 2025.
- EBITDA Trend
- EBITDA increased from US$9,970 million in 2021 to US$13,274 million in 2025. This represents a cumulative growth of approximately 33.2% over the period. The rate of increase appears relatively stable, with annual gains ranging from approximately 1.3% (2021-2022) to 7.1% (2022-2023) and then moderating to around 5.7% (2023-2024) and 2.1% (2024-2025).
- Relationship between EBITDA and other Earnings Measures
- EBITDA consistently exceeds EBIT, EBT, and Net Income, as expected, due to the exclusion of non-cash expenses like depreciation and amortization, as well as interest and taxes. The difference between EBITDA and EBIT remained relatively stable in absolute terms, increasing from US$4,635 million in 2021 to US$3,762 million in 2025, indicating a potential slight compression of operating profitability relative to overall earnings.
- Growth Rates Comparison
- While all earnings measures increased, EBITDA demonstrated a robust growth pattern. The growth in EBITDA generally outpaced the growth in Net Income, suggesting improved operational efficiency or a favorable shift in the company’s cost structure. The increase in EBT and EBIT mirrored the EBITDA trend, indicating that the core business operations were driving the overall positive performance.
Overall, the financial indicators suggest a period of sustained and positive financial performance. The consistent growth in EBITDA, coupled with increases in other earnings measures, points to a healthy and expanding business.
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Enterprise Value to EBITDA Ratio, Current
Linde plc, current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 249,836) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 13,274) |
| Valuation Ratio | |
| EV/EBITDA | 18.82 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Sherwin-Williams Co. | 19.21 |
| EV/EBITDA, Sector | |
| Chemicals | 18.92 |
| EV/EBITDA, Industry | |
| Materials | 16.00 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Linde plc, historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 259,159) | 236,632) | 233,551) | 185,434) | 161,844) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 13,274) | 13,003) | 12,368) | 10,099) | 9,970) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 19.52 | 18.20 | 18.88 | 18.36 | 16.23 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Sherwin-Williams Co. | 22.20 | 21.79 | 21.39 | 19.16 | 25.04 | |
| EV/EBITDA, Sector | ||||||
| Chemicals | 20.20 | 19.12 | 19.51 | 18.57 | 18.35 | |
| EV/EBITDA, Industry | ||||||
| Materials | 17.43 | 15.07 | 15.61 | 14.17 | 13.46 | |
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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 259,159 ÷ 13,274 = 19.52
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibits a generally increasing trend over the five-year period, with some fluctuation. Enterprise Value has consistently risen, while EBITDA has also increased, though at a slower pace, contributing to the observed ratio behavior.
- Enterprise Value (EV)
- Enterprise Value demonstrates a consistent upward trajectory, increasing from US$161,844 million in 2021 to US$259,159 million in 2025. The largest year-over-year increase occurred between 2022 and 2023, with a rise of US$48,117 million. Growth slowed in subsequent years, but remained positive.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA also shows an increasing trend, moving from US$9,970 million in 2021 to US$13,274 million in 2025. The rate of increase appears relatively stable, with annual gains ranging from approximately US$129 million to US$769 million. While positive, EBITDA growth is less pronounced than that of Enterprise Value.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 16.23 in 2021 and increased to 18.36 in 2022. It peaked at 18.88 in 2023 before decreasing slightly to 18.20 in 2024. The ratio then increased again to 19.52 in 2025. This suggests that the market valuation, relative to the company’s operating earnings, has generally increased over the period, despite a minor dip in 2024. The increasing ratio indicates investors are willing to pay a higher multiple for each dollar of EBITDA generated.
The consistent growth in Enterprise Value, coupled with the more moderate increase in EBITDA, has resulted in a generally higher EV/EBITDA ratio over the observed timeframe. The slight decrease in the ratio in 2024 is a notable, though temporary, deviation from the overall upward trend.
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