A Fresh Look at Linde (LIN) Valuation Following Q3 Results, Buybacks, and Dividend Update

Linde (LIN) just released its third quarter results, posting year-over-year gains in both sales and net income. The update was announced along with news of continued share buybacks and an affirmed quarterly dividend.

See our latest analysis for Linde.

Linde’s latest earnings and ongoing buybacks come after a stretch of choppy trading. The share price dipped over the past quarter, but its longer-term track record stands strong, with a 32% total shareholder return over three years and 75% over five years. The recent moves suggest momentum may be stabilizing after a tough few months.

If Linde’s mix of growth and shareholder rewards has you curious about what’s next, it’s a great moment to broaden your search and discover fast growing stocks with high insider ownership

Given the strong financial results and recent shareholder rewards, the real question is whether Linde’s current share price understates its potential or if future growth is already reflected in the market. Could this be a buying opportunity?

Most Popular Narrative: 17.7% Undervalued

With Linde shares last closing at $420.51, the most-followed analyst narrative assigns a higher fair value, creating a significant gap between the current price and long-term upside. This context sets the stage for a closer look into the catalysts underpinning that outlook.

Linde's project backlog has doubled over the last four years, anchored by long-term, fixed-fee contracts supporting U.S. clean energy and electronics infrastructure. Management expects this robust pipeline to remain at record levels, positioning the company for steady multi-year revenue and earnings growth.

Read the complete narrative.

Curious what powers this bullish assessment? The most important ingredient is a critical projection for sustainable earnings expansion and improved profit margins, built on aggressive assumptions about Linde’s future contracts and sector leadership. Want to see which growth levers drive that jump in value?

Result: Fair Value of $511.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slower clean energy adoption or prolonged industrial weakness in Europe could quickly change Linde's outlook. These factors pose real risks to these optimistic forecasts.

Find out about the key risks to this Linde narrative.

Another View: Not Undervalued on Discounted Cash Flow

While analysts believe Linde’s upside is driven by strong growth and sector momentum, our SWS DCF model arrives at a different outcome. Based on cash flow fundamentals, Linde actually trades above its estimated fair value. This suggests the optimism in the market price may already be accounted for. Could this alternative perspective indicate the rally is stretched, or will earnings continue to support it?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Linde for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 870 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Linde Narrative

If you’d like to dig into the numbers yourself or prefer to form your own perspective, you can shape a custom view of Linde’s story in just a few minutes. Do it your way

A great starting point for your Linde research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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