Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

Linde plc, current price multiples

Microsoft Excel
Linde plc Sherwin-Williams Co. Chemicals Materials
Selected Financial Data
Current share price (P) $444.81
No. shares of common stock outstanding 476,157,903
Growth rate (g) 3.11%
 
Earnings per share (EPS) $13.02
Next year expected EPS $13.42
Operating profit per share $16.85
Sales per share $69.00
Book value per share (BVPS) $83.42
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 34.17 39.18 35.56 35.14
Price to next year expected earnings 33.14 27.39 33.53 32.95
Price-earnings-growth (PEG) 10.99 0.91 5.87 5.29
Price to operating profit (P/OP) 26.40 26.23 26.35 20.58
Price to sales (P/S) 6.45 4.06 5.46 4.66
Price to book value (P/BV) 5.33 25.19 7.03 6.10

Based on: 10-K (reporting date: 2023-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Linde plc, historical price multiples

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 35.05 41.34 38.92 52.57 46.22
Price to operating profit (P/OP) 27.08 31.93 29.87 39.58 36.01
Price to sales (P/S) 6.61 5.14 4.84 4.83 3.74
Price to book value (P/BV) 5.47 4.28 3.38 2.78 2.15

Based on: 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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Linde plc P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Linde plc P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Linde plc P/S ratio increased from 2021 to 2022 and from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Linde plc P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

Linde plc, historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 481,576,472 492,160,806 507,744,577 522,836,425 532,959,736
Selected Financial Data (US$)
Net income, Linde plc (in millions) 6,199 4,147 3,826 2,501 2,285
Earnings per share (EPS)2 12.87 8.43 7.54 4.78 4.29
Share price1, 3 451.20 348.37 293.24 251.49 198.15
Valuation Ratio
P/E ratio4 35.05 41.34 38.92 52.57 46.22
Benchmarks
P/E Ratio, Competitors5
Sherwin-Williams Co. 33.16 28.48 37.32 31.64 34.31
P/E Ratio, Sector
Chemicals 34.52 37.13 38.39 43.19 41.42
P/E Ratio, Industry
Materials 33.75 30.05 28.21 47.50 49.13

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income, Linde plc ÷ No. shares of common stock outstanding
= 6,199,000,000 ÷ 481,576,472 = 12.87

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 451.20 ÷ 12.87 = 35.05

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Linde plc P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Operating Profit (P/OP)

Linde plc, historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 481,576,472 492,160,806 507,744,577 522,836,425 532,959,736
Selected Financial Data (US$)
Operating profit (in millions) 8,024 5,369 4,984 3,322 2,933
Operating profit per share2 16.66 10.91 9.82 6.35 5.50
Share price1, 3 451.20 348.37 293.24 251.49 198.15
Valuation Ratio
P/OP ratio4 27.08 31.93 29.87 39.58 36.01
Benchmarks
P/OP Ratio, Competitors5
Sherwin-Williams Co. 22.20 19.16 27.19 22.45 23.12
P/OP Ratio, Sector
Chemicals 25.58 27.35 28.96 31.65 30.36
P/OP Ratio, Industry
Materials 19.77 18.79 17.73 28.27 27.93

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 8,024,000,000 ÷ 481,576,472 = 16.66

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 451.20 ÷ 16.66 = 27.08

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Linde plc P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Sales (P/S)

Linde plc, historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 481,576,472 492,160,806 507,744,577 522,836,425 532,959,736
Selected Financial Data (US$)
Sales (in millions) 32,854 33,364 30,793 27,243 28,228
Sales per share2 68.22 67.79 60.65 52.11 52.96
Share price1, 3 451.20 348.37 293.24 251.49 198.15
Valuation Ratio
P/S ratio4 6.61 5.14 4.84 4.83 3.74
Benchmarks
P/S Ratio, Competitors5
Sherwin-Williams Co. 3.44 2.60 3.49 3.50 2.95
P/S Ratio, Sector
Chemicals 5.30 4.13 4.31 4.29 3.44
P/S Ratio, Industry
Materials 4.47 3.70 3.83 4.08 2.91

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= 32,854,000,000 ÷ 481,576,472 = 68.22

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 451.20 ÷ 68.22 = 6.61

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Linde plc P/S ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

Linde plc, historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 481,576,472 492,160,806 507,744,577 522,836,425 532,959,736
Selected Financial Data (US$)
Total Linde plc shareholders’ equity (in millions) 39,720 40,028 44,035 47,317 49,074
Book value per share (BVPS)2 82.48 81.33 86.73 90.50 92.08
Share price1, 3 451.20 348.37 293.24 251.49 198.15
Valuation Ratio
P/BV ratio4 5.47 4.28 3.38 2.78 2.15
Benchmarks
P/BV Ratio, Competitors5
Sherwin-Williams Co. 21.32 18.55 28.55 17.79 12.82
P/BV Ratio, Sector
Chemicals 6.83 5.31 4.70 3.84 2.98
P/BV Ratio, Industry
Materials 5.86 4.93 4.66 3.99 2.82

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Total Linde plc shareholders’ equity ÷ No. shares of common stock outstanding
= 39,720,000,000 ÷ 481,576,472 = 82.48

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 451.20 ÷ 82.48 = 5.47

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Linde plc P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.