Using the PEG framework with analyst consensus forward EPS growth of 12.6% plus 1.2% dividend yield, Linde plc has a fair value of $225.33 based on NTM EPS (FY2026) of $17.84. The current PEG ratio is 2.22.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.4% |
| Dividend Yield | +1.2% |
| Adjusted Growth (clamped 8–25%) | 12.6% |
| Fair P/E | 12.6x |
| NTM EPS (FY2026) | $17.84 |
| Fair Value | $225.33 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $14.59 | — | — |
| FY2026E | $17.84 | +22.3% | 20 |
| FY2027E | $19.50 | +9.3% | 18 |
| FY2028E | $21.45 | +10.0% | 17 |
| FY2029E | $25.59 | +19.3% | 14 |
| FY2030E | $25.05 | -2.1% | 8 |
5Y Forward EPS CAGR: 11.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.8B | $7.33 | — |
| FY2022 | $4.1B | $8.23 | +12.3% |
| FY2023 | $6.2B | $12.59 | +53.0% |
| FY2024 | $6.6B | $13.62 | +8.2% |
| FY2025 | $6.9B | $14.59 | +7.1% |
4Y Historical EPS CAGR: 18.8%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.