Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Linde plc, FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income, Linde plc 6,199 4,147 3,826 2,501 2,285
Noncontrolling interests 142 134 135 125 96
Net noncash charges 3,447 4,893 4,616 4,439 3,898
Working capital (483) (310) 1,148 364 (160)
Net cash provided by operating activities 9,305 8,864 9,725 7,429 6,119
Capital expenditures (3,787) (3,173) (3,086) (3,400) (3,682)
Short-term debt borrowings (repayments), net 554 3,050 (1,329) 1,198 224
Long-term debt borrowings 2,188 3,210 2,283 2,796 99
Long-term debt repayments (1,682) (1,785) (1,468) (2,681) (1,583)
Free cash flow to equity (FCFE) 6,578 10,166 6,125 5,342 1,177

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Linde plc equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Linde plc FCFE increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Price to FCFE Ratio, Current

Linde plc, current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 481,576,472
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 6,578
FCFE per share 13.66
Current share price (P) 466.23
Valuation Ratio
P/FCFE 34.13
Benchmarks
P/FCFE, Industry
Materials 56.53

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

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Linde plc, historical P/FCFE 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$)
Free cash flow to equity (FCFE) (in millions)2 6,578 10,166 6,125 5,342 1,177
FCFE per share3 13.66 20.66 12.06 10.22 2.21
Share price1, 4 451.20 348.37 293.24 251.49 198.15
Valuation Ratio
P/FCFE5 33.03 16.87 24.31 24.61 89.72
Benchmarks
P/FCFE, Industry
Materials 52.78 19.12 19.49 23.59

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 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,578,000,000 ÷ 481,576,472 = 13.66

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

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 451.20 ÷ 13.66 = 33.03

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Linde plc P/FCFE ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.