Is Linde plc Ordinary Shares (LIN) overvalued?
On Equity Rank's model estimate, LIN trades 57% above its fair value. Linde plc Ordinary Shares (LIN) last closed at $515.25; the multi-method model fair value is $329.12.
| Price | Model fair value | Price vs model |
|---|---|---|
| $515.25 | $329.12 | 57% above |
What the answer rests on
- 0 of 9 valuation methods put LIN's value above its price and 9 put it below, so the methods mostly agree.
- To justify today's price, LIN's free cash flow would need to grow about 13.9% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -3.7% a year.
- LIN trades at 34.8 times its last year's earnings, against a median of 26.4 for 26 profitable Specialty Chemicals companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 18% above to 65% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind LIN's fair value · What prices assume · Other companies