Key Takeaways:
- L’Air Liquide S.A. is strengthening its position as a global leader in industrial and medical gases by executing its ADVANCE 2025 plan, focusing on energy transition, healthcare, and high‑tech end markets.
- AI stock could reasonably reach €199 per share by December 2027, based on our valuation assumptions.
- This implies a total return of 27.4% from today’s price of €156, with an annualized return of 13% over the next 2.0 years.
L’Air Liquide S.A. (AI) is reinforcing its position as a top‑tier industrial gas provider by growing across energy, electronics, healthcare, and industrial sectors while investing heavily in low‑carbon hydrogen and other clean‑energy solutions.
The company operates in more than 70 countries, serving over 4 million customers and patients through long‑term contracts, on‑site gas supply, and packaged gas products that support mission‑critical industrial processes.
Recent results highlight solid execution despite a softer macro backdrop, with L’Air Liquide maintaining resilient margins through price discipline, efficiency initiatives, and portfolio optimization.
Management continues to advance large‑scale projects in hydrogen, carbon capture, and electronics, aiming to capture structural growth from decarbonization, semiconductor demand, and rising healthcare needs.
Here’s why L’Air Liquide S.A. stock could continue to offer attractive returns through 2030 as it leverages its extensive pipeline network, long‑duration contracts, and innovation in low‑carbon technologies to drive steady earnings and cash‑flow growth.
What the Model Says for L’Air Liquide S.A. Stock
We analyzed the upside potential for L’Air Liquide S.A. stock using valuation assumptions based on its diversified exposure to industrial, energy transition, and healthcare end markets, its strong pricing power, and disciplined capital allocation under the ADVANCE strategic plan.
Based on estimates of 4.0% annual revenue growth, 22.3% operating margins, and a normalized P/E multiple of 23x, the model projects L’Air Liquide S.A. stock could rise from €156 to €199 per share.
That would be a 27.4% total return, or an 13% annualized return over the next 2 years.
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for L’Air Liquide S.A. stock:
1. Revenue Growth: 4.0%
L’Air Liquide has delivered solid top‑line growth over the long term, with revenue rising at a 5.8% compound annual rate over the past 10 years and 4.3% over the past 5 years, despite a recent -2.0% decline on a 1‑year basis.
Growth is supported by structural trends such as energy transition, electrification, and increased demand for medical gases and home healthcare, while short‑term headwinds in certain industrial segments have weighed on near‑term volumes.
The company continues to win large on‑site contracts, expand its electronics and healthcare businesses, and invest in low‑carbon hydrogen and carbon‑capture projects that should support steady, inflation‑protected revenue growth over time.
Based on analysts’ consensus estimates, we used a 4.0% forecast, reflecting L’Air Liquide S.A.’s ability to grow slightly below its long‑term historical rate in a more normalized macro environment while benefiting from secular demand in energy transition and healthcare.
2. Operating margins: 22.3%
L’Air Liquide has improved profitability over time, with operating margins averaging around the high‑teens to low‑20s range, and the model assumes margins reach 22.3% by 2027 as efficiency initiatives and mix shift take hold.
The company focuses on high‑value engineering, long‑term on‑site gas contracts, and specialized healthcare and electronics applications, which typically carry attractive margins and stable cash flows.
Ongoing productivity programs, energy‑efficiency measures, and portfolio optimization provide additional margin support, even as the company invests in growth projects across hydrogen, semiconductor, and medical markets.
Based on analysts’ consensus estimates, we forecast 22.3% operating margins, reflecting L’Air Liquide S.A.’s track record of disciplined cost management and pricing power, balanced against continued investment needs in large‑scale industrial and clean‑energy projects.
3. Exit P/E Multiple: 23x
L’Air Liquide historically trades at a premium valuation versus many industrial peers, supported by its resilient cash flows, strong balance sheet, and diversified, defensive end‑market exposure.
The current valuation embeds expectations of steady earnings growth and continued shareholder returns through dividends and share buybacks.
Based on analysts’ consensus estimates, we apply a 23x exit P/E multiple, which is broadly consistent with the company’s long‑term average and reflects L’Air Liquide S.A.’s durable competitive advantages, global scale, and exposure to energy transition and healthcare growth.
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What Happens If Things Go Better or Worse?
Different scenarios for AI stock through 2030 show varied outcomes based on project execution, demand across industrial and healthcare customers, and overall macroeconomic conditions (these are estimates, not guaranteed returns):
- Low Case: Revenue growth and margin expansion lag expectations, and macro weakness pressures industrial volumes → 5.9% annual returns
- Mid Case: Execution remains solid, ADVANCE projects ramp as planned, and demand in hydrogen, electronics, and healthcare grows steadily → 11.1% annual returns
- High Case: Large‑scale hydrogen and decarbonization projects outperform, electronics and healthcare grow faster than expected, and margins expand more than modeled → 15.6% annual returns
Even in the conservative case, L’Air Liquide S.A. stock offers positive modeled returns supported by its defensive business mix, long‑term contracts, and strong free‑cash‑flow generation backed by disciplined capital allocation and a long history of dividend growth.
AI Stock Valuation Model (TIKR)
How Much Upside Does L’Air Liquide Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
