At US$281, Is Linde plc (NYSE:LIN) Worth Looking At Closely?

Today we're going to take a look at the well-established Linde plc (NYSE:LIN). The company's stock saw significant share price movement during recent months on the NYSE, rising to highs of US$312 and falling to the lows of US$264. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Linde's current trading price of US$281 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Linde’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Our analysis indicates that LIN is potentially overvalued!

Is Linde Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 6.13% above my intrinsic value, which means if you buy Linde today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $264.69, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Linde’s low beta implies that the stock is less volatile than the wider market.

What does the future of Linde look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 77% over the next couple of years, the future seems bright for Linde. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in LIN’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on LIN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. At Simply Wall St, we found 1 warning sign for Linde and we think they deserve your attention.

If you are no longer interested in Linde, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.