Linde plc, FCFF calculation

US$ in millions

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)
Interest paid, net of capitalized interest, net of tax¹	349)	126)	175)	242)	203)
Interest capitalized, net of tax²	52)	46)	43)	29)	28)
Capital expenditures	(3,787)	(3,173)	(3,086)	(3,400)	(3,682)
Free cash flow to the firm (FCFF)	5,918)	5,863)	6,857)	4,299)	2,668)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Linde plc suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Linde plc FCFF decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Linde plc, interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	22.70%	25.90%	24.70%	25.00%	26.30%
Interest Paid, Net of Tax
Interest paid, net of capitalized interest, before tax	451)	170)	233)	322)	275)
Less: Interest paid, net of capitalized interest, tax²	102)	44)	58)	81)	72)
Interest paid, net of capitalized interest, net of tax	349)	126)	175)	242)	203)
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax	67)	62)	57)	38)	38)
Less: Interest capitalized, tax³	15)	16)	14)	10)	10)
Interest capitalized, net of tax	52)	46)	43)	29)	28)

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 See details »

² 2023 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= 451 × 22.70% = 102

³ 2023 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 67 × 22.70% = 15

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Linde plc, current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	218,303)
Free cash flow to the firm (FCFF)	5,918)
Valuation Ratio
EV/FCFF	36.89
Benchmarks
EV/FCFF, Competitors¹
Sherwin-Williams Co.	32.70
EV/FCFF, Sector
Chemicals	35.48
EV/FCFF, Industry
Materials	39.36

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

¹ Click competitor name to see calculations.

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

Linde plc, historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	233,551)	185,434)	161,844)	146,303)	119,310)
Free cash flow to the firm (FCFF)²	5,918)	5,863)	6,857)	4,299)	2,668)
Valuation Ratio
EV/FCFF³	39.46	31.63	23.60	34.03	44.72
Benchmarks
EV/FCFF, Competitors⁴
Sherwin-Williams Co.	30.06	43.34	36.70	21.39	27.24
EV/FCFF, Sector
Chemicals	36.32	34.12	26.76	28.47	36.71
EV/FCFF, Industry
Materials	40.11	34.36	20.85	30.81	51.04

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 See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 233,551 ÷ 5,918 = 39.46

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Linde plc EV/FCFF ratio increased from 2021 to 2022 and from 2022 to 2023.

Linde plc (NASDAQ:LIN)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical