Key Takeaways:
- Linde is strengthening its market position through a $10 billion project backlog, expansion into electronics, and AI-driven operational improvements.
- LIN stock could potentially reach $641 by December 2029, based on conservative valuation assumptions.
- This represents a total return of 50% from today’s price of $429, with an annualized return of 10% over the next 4.1 years.
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Linde plc (LIN), the world’s largest industrial gases company, is capitalizing on secular growth trends in electronics manufacturing, commercial space, and industrial automation while maintaining its reputation for operational excellence and shareholder-friendly capital allocation.
Linde serves customers across more than 100 countries through on-site production facilities, merchant supply, and packaged gas distribution. This includes providing essential gases like oxygen, nitrogen, hydrogen, and argon to industries ranging from healthcare to steel manufacturing.
Core offerings include long-term on-site supply contracts that provide stable cash flows, merchant gas delivery that serves medium-sized operations, and cylinder gas distribution for smaller customers. The model creates multiple revenue streams with different risk profiles and growth characteristics.
The industrial gas leader delivered third quarter 2025 sales of $8.6 billion, representing 3% growth, with earnings per share climbing 7% to $4.21 as the company demonstrated strong operational leverage despite challenging macro conditions.
Linde maintained its $10 billion backlog at record levels, grew operating cash flow 8% to $2.9 billion, expanded EBITDA margins by 200 basis points in Europe despite volume declines, and continued aggressive share repurchases as part of its disciplined capital allocation framework.
LIN stock is up 300% over the last 10 years and appears well-positioned to deliver solid gains for long-term shareholders.
Here’s why Linde stock could provide attractive returns through 2029 as it capitalizes on secular electronics growth while leveraging its resilient business model across economic cycles.
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What the Model Says for Linde Stock
We analyzed the upside potential for Linde stock using valuation assumptions based on its market-leading position, project backlog visibility, and ability to grow earnings through both favorable and challenging economic environments.
Analysts recognize an opportunity ahead for LIN stock given its contractually secured $10 billion backlog that provides multi-year earnings visibility, its 7% EPS growth despite weak industrial volumes, and its strategic positioning in high-growth end markets like electronics and commercial space.
Moreover, recent project wins in semiconductor manufacturing and continued margin expansion demonstrate the company’s ability to compound shareholder value regardless of near-term economic conditions.
Based on estimates of 5.4% annual revenue growth, 24.6% net income margins, and a normalized P/E valuation multiple of 26x, the model projects LIN stock could rise from $429 to $528.
That would be a 23% total return, or a 10% annualized return over the next 4.1 years.
Our Valuation Assumptions
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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 LIN stock:
1. Revenue Growth: 5.4%
Linde delivered solid third quarter 2025 performance with 3% sales growth and 7% EPS growth, outperforming expectations given the industrial recession headwinds impacting many end markets.
We used a 5.4% forecast, reflecting Linde’s ability to grow through cycles via its backlog conversion, pricing discipline that matches global inflation, and market share gains in high-growth sectors like semiconductors and aerospace.
2. Operating margins: 24.6%
In the third quarter of 2025, Linde’s net income margin remained strong at 21%, reflecting the company’s operational leverage and disciplined cost management even as industrial volumes declined in key markets.
LIN targets continued margin expansion through several levers, including project backlog conversion with attractive economics, pricing that tracks inflation across all geographies, and productivity initiatives including 300+ AI use cases that reduce costs across operations, sales, and engineering.
3. Exit P/E Multiple: 26x
Linde trades at premium multiples, reflecting its position as the global industrial gas leader with demonstrated pricing power, margin expansion capability, and consistent capital returns through all economic environments.
We maintain reasonable valuation levels given LIN’s track record of mid-to-high single-digit EPS growth, visible backlog that extends years into the future, and systematic approach to creating shareholder value through share buybacks and strategic M&A.
Long-term competitive advantages from scale economies, customer switching costs via on-site infrastructure, and operational excellence should support current valuation levels as the company executes on its $10 billion backlog and continues expanding in electronics and other growth markets.
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What Happens If Things Go Better or Worse?
Different scenarios for Linde stock through 2030 show varied outcomes based on backlog conversion, margin expansion, and industrial volume recovery: (these are estimates, not guaranteed returns):
- Low Case: Prolonged industrial recession and margin pressure lead to 5% annual returns
- Mid Case: Backlog execution and selective volume recovery produce 10% annual returns
- High Case: Strong industrial recovery and electronics boom drive 15% annual returns
Even in the conservative case, Linde stock offers reasonable returns supported by contractually secured revenues, disciplined pricing, and ongoing productivity gains that offset volume headwinds.
The upside scenario for LIN stock could deliver exceptional performance if industrial volumes recover meaningfully while the company successfully converts its record backlog and captures increasing electronics demand from AI-driven chip production.
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How Much Upside Does Linde Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
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!
