DCF Tool

LIN

Linde Plc
Linde is a leading global industrial gases and engineering company with 2020 sales of $27 billion (€24 billion). The company lives its mission of making its world more productive every day by providing high-quality solutions, technologies and services which are making the customers more successful and helping to sustain and protect the planet.The company serves a variety of end markets including chemicals & refining, food & beverage, electronics, healthcare, manufacturing and primary metals. Linde's industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.
Analysis Results
Intrinsic Value $352.55
Latest Price $269.59
Relative Value 24% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 23.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 5.49 5.09
2023 6.77 5.83
2024 8.35 6.67
2025 10.3 7.63
2026 12.7 8.73
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 223 billion. This corresponds to a present value of 142 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 33.9 billion. Adding in the terminal value gives a total present value of 176 billion.

There are presently 498.0 million outstanding shares, so the intrinsic value per share is 352.55.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 10,159,000,000
Current Cash 2,823,000,000
Current Liabilities 13,643,000,000
Current Debt 2,872,000,000
Non-Cash Working Capital (NCWC) -3,435,000,000
Change in NCWC -905,000,000
EBIT 5,402,000,000
Tax Provision 1,262,000,000
Depreciation and Amortization 4,635,000,000
Capital Expenditure -3,086,000,000
Unlevered Free Cash Flow 4,739,498,658
Current Assets 10,924,000,000
Current Cash 3,754,000,000
Current Liabilities 13,740,000,000
Current Debt 4,040,000,000
Non-Cash Working Capital (NCWC) -2,530,000,000
Change in NCWC -1,285,000,000
EBIT 3,974,000,000
Tax Provision 847,000,000
Depreciation and Amortization 4,626,000,000
Capital Expenditure -3,400,000,000
Unlevered Free Cash Flow 2,944,697,895
Current Assets 10,352,000,000
Current Cash 2,700,000,000
Current Liabilities 12,160,000,000
Current Debt 3,263,000,000
Non-Cash Working Capital (NCWC) -1,245,000,000
Change in NCWC -4,103,000,000
EBIT 3,390,000,000
Tax Provision 769,000,000
Depreciation and Amortization 4,675,000,000
Capital Expenditure -3,682,000,000
Unlevered Free Cash Flow -577,254,192
Current Assets 17,272,000,000
Current Cash 4,466,000,000
Current Liabilities 12,956,000,000
Current Debt 3,008,000,000
Non-Cash Working Capital (NCWC) 2,858,000,000
Change in NCWC 2,280,000,000
EBIT 2,308,000,000
Tax Provision 817,000,000
Depreciation and Amortization 1,830,000,000
Capital Expenditure -1,883,000,000
Unlevered Free Cash Flow 4,165,629,578
Current Assets 3,285,000,000
Current Cash 617,000,000
Current Liabilities 3,307,000,000
Current Debt 1,217,000,000
Non-Cash Working Capital (NCWC) 578,000,000
Change in NCWC 102,000,000
EBIT 2,551,000,000
Tax Provision 1,026,000,000
Depreciation and Amortization 1,184,000,000
Capital Expenditure -1,311,000,000
Unlevered Free Cash Flow 1,404,609,254
Current Assets 2,880,000,000
Current Cash 524,000,000
Current Liabilities 2,478,000,000
Current Debt 598,000,000
Non-Cash Working Capital (NCWC) 476,000,000
Change in NCWC -366,000,000
EBIT 2,361,000,000
Tax Provision 551,000,000
Depreciation and Amortization 1,122,000,000
Capital Expenditure -1,465,000,000
Unlevered Free Cash Flow 1,029,256,582
Current Assets 2,626,000,000
Current Cash 147,000,000
Current Liabilities 1,893,000,000
Current Debt 256,000,000
Non-Cash Working Capital (NCWC) 842,000,000
Change in NCWC 30,000,000
EBIT 2,512,000,000
Tax Provision 612,000,000
Depreciation and Amortization 1,106,000,000
Capital Expenditure -1,541,000,000
Unlevered Free Cash Flow 1,409,158,874
Current Assets 2,839,000,000
Current Cash 126,000,000
Current Liabilities 2,490,000,000
Current Debt 589,000,000
Non-Cash Working Capital (NCWC) 812,000,000
Change in NCWC -87,000,000
EBIT 2,795,000,000
Tax Provision 691,000,000
Depreciation and Amortization 1,170,000,000
Capital Expenditure -1,689,000,000
Unlevered Free Cash Flow 1,396,490,767
Current Assets 2,916,000,000
Current Cash 138,000,000
Current Liabilities 2,664,000,000
Current Debt 785,000,000
Non-Cash Working Capital (NCWC) 899,000,000
Change in NCWC 66,000,000
EBIT 2,670,000,000
Tax Provision 649,000,000
Depreciation and Amortization 1,109,000,000
Capital Expenditure -2,020,000,000
Unlevered Free Cash Flow 1,127,684,104
Current Assets 2,792,000,000
Current Cash 157,000,000
Current Liabilities 2,479,000,000
Current Debt 677,000,000
Non-Cash Working Capital (NCWC) 833,000,000
Change in NCWC 127,000,000
EBIT 2,503,000,000
Tax Provision 586,000,000
Depreciation and Amortization 1,001,000,000
Capital Expenditure -2,180,000,000
Unlevered Free Cash Flow 821,490,128

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