Linde plc, FCFE 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)
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).

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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.

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

No. shares of common stock outstanding	476,157,903
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	6,578)
FCFE per share	13.81
Current share price (P)	444.06
Valuation Ratio
P/FCFE	32.14
Benchmarks
P/FCFE, Industry
Materials	47.11

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.

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

	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 price^1, 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	46.79	17.77	18.53	28.92	—

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

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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.

Linde plc (NASDAQ:LIN)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical