Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Linde plc, FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income, Linde plc 6,565 6,199 4,147 3,826 2,501
Noncontrolling interests 172 142 134 135 125
Net noncash charges 3,531 3,447 4,893 4,616 4,439
Working capital (845) (483) (310) 1,148 364
Net cash provided by operating activities 9,423 9,305 8,864 9,725 7,429
Interest paid, net of capitalized interest, net of tax1 339 349 126 175 242
Interest capitalized, net of tax2 52 52 46 43 29
Capital expenditures (4,497) (3,787) (3,173) (3,086) (3,400)
Free cash flow to the firm (FCFF) 5,317 5,918 5,863 6,857 4,299

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).

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 increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Interest Paid, Net of Tax

Linde plc, interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR1 23.40% 22.70% 25.90% 24.70% 25.00%
Interest Paid, Net of Tax
Interest paid, net of capitalized interest, before tax 443 451 170 233 322
Less: Interest paid, net of capitalized interest, tax2 104 102 44 58 81
Interest paid, net of capitalized interest, net of tax 339 349 126 175 242
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 68 67 62 57 38
Less: Interest capitalized, tax3 16 15 16 14 10
Interest capitalized, net of tax 52 52 46 43 29

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 See details »

2 2024 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= 443 × 23.40% = 104

3 2024 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 68 × 23.40% = 16


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 238,567
Free cash flow to the firm (FCFF) 5,317
Valuation Ratio
EV/FCFF 44.87
Benchmarks
EV/FCFF, Competitors1
Sherwin-Williams Co. 39.92
EV/FCFF, Sector
Chemicals 43.30
EV/FCFF, Industry
Materials 38.66

Based on: 10-K (reporting date: 2024-12-31).

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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 236,632 233,551 185,434 161,844 146,303
Free cash flow to the firm (FCFF)2 5,317 5,918 5,863 6,857 4,299
Valuation Ratio
EV/FCFF3 44.50 39.46 31.63 23.60 34.03
Benchmarks
EV/FCFF, Competitors4
Sherwin-Williams Co. 40.01 29.82 43.34 36.70 21.39
EV/FCFF, Sector
Chemicals 43.08 36.22 34.12 26.76 28.47
EV/FCFF, Industry
Materials 38.72 40.02 34.36 20.85 30.81

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 See details »

2 See details »

3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 236,632 ÷ 5,317 = 44.50

4 Click competitor name to see calculations.

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 2022 to 2023 and from 2023 to 2024.