Common Stock Valuation Ratios (Price Multiples)
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).
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Linde plc pages available for free this week:
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Analysis of Debt
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Current Valuation Ratios
Linde plc, current price multiples
| Linde plc | Sherwin-Williams Co. | Chemicals | Materials | ||||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Current share price (P) | |||||||
| No. shares of common stock outstanding | |||||||
| Growth rate (g) | |||||||
| Earnings per share (EPS) | |||||||
| Next year expected EPS | |||||||
| Operating profit per share | |||||||
| Sales per share | |||||||
| Book value per share (BVPS) | |||||||
| Valuation Ratios (Price Multiples) | |||||||
| Price to earnings (P/E) | |||||||
| Price to next year expected earnings | |||||||
| Price-earnings-growth (PEG) | |||||||
| Price to operating profit (P/OP) | |||||||
| Price to sales (P/S) | |||||||
| Price to book value (P/BV) | |||||||
Based on: 10-K (reporting date: 2024-12-31).
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 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).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio demonstrates a declining trend from 52.57 in 2020 to 33.25 in 2024. This decrease suggests that the market valuation relative to the company's earnings has become more conservative over the period, indicating either market adjustments to earnings expectations or improved earnings performance that has outpaced stock price growth.
- Price to Operating Profit (P/OP) Ratio
- Similar to the P/E ratio, the price to operating profit ratio consistently decreased from 39.58 in 2020 to 25.28 in 2024. This declining pattern indicates a shrinking premium placed on operating profit, which may reflect enhanced operational efficiency, improved profitability, or a more cautious investor outlook on operating income sustainability.
- Price to Sales (P/S) Ratio
- The price to sales ratio experienced a moderate increase from 4.83 in 2020 to 6.61 in 2024, with a steady rise particularly notable from 2022 onwards. This upward movement suggests that the market is valuing the company's sales more highly over time, possibly due to expectations of future revenue growth or increased sales stability.
- Price to Book Value (P/BV) Ratio
- The price to book value ratio shows a marked upward trend, rising from 2.78 in 2020 to 5.73 in 2024. This significant increase indicates that the market is attributing greater value to the company’s net assets, potentially reflecting improvements in asset quality, growth prospects, or intangible asset recognition.
Price to Earnings (P/E)
Linde plc, historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income, Linde plc (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Sherwin-Williams Co. | ||||||
| P/E Ratio, Sector | ||||||
| Chemicals | ||||||
| P/E Ratio, Industry | ||||||
| Materials | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income, Linde plc ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Linde plc Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibits a consistent upward trajectory over the five-year period. Starting at $251.49 in 2020, it rose steadily each year to reach $461.55 by 2024. This reflects an overall increase of approximately 83.4% from 2020 to 2024, indicating strong market confidence and growth potential.
- Earnings Per Share (EPS) Trend
- The EPS demonstrates notable growth throughout the observed timeframe. Beginning at $4.78 in 2020, earnings increased each year, culminating at $13.88 in 2024. This represents a near threefold increase in EPS, which is indicative of improving profitability and operational efficiency.
- Price-to-Earnings (P/E) Ratio Trend
- The P/E ratio shows a declining trend over the period, decreasing from 52.57 in 2020 to 33.25 in 2024. Despite rising share prices and earnings, the P/E ratio's decline suggests that earnings growth outpaced the increase in share price, potentially indicating a valuation that is becoming more reasonable or market expectations adjusting to improved earnings performance.
- Overall Insights
- The data reveals robust financial performance characterized by significant earnings growth and increasing share price. The decline in the P/E ratio amidst rising prices and EPS suggests enhanced shareholder value and possibly moderated market optimism relative to earnings. These trends collectively point to improved company profitability while maintaining a balanced valuation.
Price to Operating Profit (P/OP)
Linde plc, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Sherwin-Williams Co. | ||||||
| P/OP Ratio, Sector | ||||||
| Chemicals | ||||||
| P/OP Ratio, Industry | ||||||
| Materials | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Linde plc Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a consistent upward trend over the five-year period. Starting at $251.49 at the end of 2020, it increased steadily each year, reaching $461.55 by the end of 2024. The growth accelerated notably from 2022 to 2023, with the price rising from $348.37 to $451.20, indicating increased market confidence or positive company developments in that period.
- Operating Profit Per Share
- Operating profit per share also demonstrated a strong upward trajectory. Beginning at $6.35 in 2020, this indicator rose substantially each year, culminating at $18.26 in 2024. This steady increase suggests improved operational efficiency or higher profitability contributing to each share's value, particularly a significant jump after 2022.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio showed a decreasing trend over the same period, moving from 39.58 in 2020 down to 25.28 in 2024. This decline signifies that the share price growth is being supported by relatively stronger growth in operating profit per share. A declining P/OP ratio typically indicates that the stock may be becoming more attractively valued in relation to its earnings performance, reflecting improved earnings momentum relative to market price increases.
- Summary
- Overall, the data indicates a positive financial performance trend characterized by rising share price and increasing operating profits per share. The simultaneous decrease in the price-to-operating profit ratio suggests that profitability improvements are outweighing price increases, which could reflect enhanced operational effectiveness or a more favorable market valuation relative to earnings. The acceleration in share price and earnings growth particularly after 2022 highlights a period of stronger company performance or investor optimism.
Price to Sales (P/S)
Linde plc, historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Sales (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Sherwin-Williams Co. | ||||||
| P/S Ratio, Sector | ||||||
| Chemicals | ||||||
| P/S Ratio, Industry | ||||||
| Materials | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Linde plc Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a consistent upward trajectory over the five-year period. Starting at $251.49 at the end of 2020, it increased to $293.24 in 2021, followed by $348.37 in 2022. The growth accelerated notably in 2023, reaching $451.20, with a more moderate rise to $461.55 in 2024. This indicates strong investor confidence and appreciation in market value over time.
- Sales Per Share Development
- Sales per share showed steady growth throughout the period. The figure rose from $52.11 in 2020 to $60.65 in 2021, continuing upward to $67.79 in 2022. In 2023 and 2024, sales per share increased more gradually to $68.22 and $69.79 respectively. This suggests persistent improvement in revenue generation on a per-share basis, albeit with some deceleration in growth rate toward the end of the period.
- Price-to-Sales (P/S) Ratio Dynamics
- The P/S ratio remained relatively stable between 2020 and 2021, at approximately 4.83 and 4.84 respectively. It then increased to 5.14 in 2022, followed by a significant jump to 6.61 in 2023, where it remained constant in 2024. This upward movement indicates that the market valuation of the company increased at a faster pace than sales growth, potentially reflecting elevated investor expectations or improved profitability margins.
- Summary of Financial Indicators
- Overall, the data reveals a robust growth in share price supported by steady improvements in sales per share. The acceleration in the P/S ratio in the last two reported years suggests rising market optimism or an enhanced perception of value beyond sales figures alone. The combination of these factors portrays a favorable development in both market performance and operational results.
Price to Book Value (P/BV)
Linde plc, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Linde plc shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Sherwin-Williams Co. | ||||||
| P/BV Ratio, Sector | ||||||
| Chemicals | ||||||
| P/BV Ratio, Industry | ||||||
| Materials | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Total Linde plc shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Linde plc Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The data reveals significant movements in the share price and book value per share (BVPS) over the five-year period, influencing the price-to-book value (P/BV) ratio accordingly.
- Share Price
- The share price shows a consistent and robust upward trend across the years. Starting at $251.49 in 2020, it increased steadily each year, reaching $461.55 by the end of 2024. This represents an overall increase of approximately 83.5% over the period, indicating strong market confidence and potentially favorable business performance or growth expectations.
- Book Value per Share (BVPS)
- The BVPS displays a gradual decline over the same timeframe. Beginning at $90.5 in 2020, the value decreased year-on-year to $80.55 by 2024. This represents a reduction of about 11%, suggesting that the company's underlying net asset value per share has been contracting, which could be the result of factors such as asset write-downs, dividend payments exceeding earnings, or other equity adjustments.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio, a measure of market valuation relative to book value, escalates markedly from 2.78 in 2020 to 5.73 in 2024. This increase reflects the faster growth rate of the share price relative to the decline in the book value per share. A rising P/BV ratio may indicate heightened investor expectations of future profitability or intangible asset values not captured on the balance sheet but also suggests a potentially stretched valuation compared to book value.
Overall, the analysis shows that while the company’s net asset value per share experienced a slight decline, the market value exhibited substantial growth, enhancing the market valuation multiples. Stakeholders should consider the implications of the expanding P/BV ratio in the context of company fundamentals and broader market conditions.