Intrinsic value of Praxair - PX

Previous Close

$161.88

  Intrinsic Value

$66.98

stock screener

  Rating & Target

str. sell

-59%

Previous close

$161.88

 
Intrinsic value

$66.98

 
Up/down potential

-59%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of PX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -2.25
  7.60
  7.34
  7.11
  6.90
  6.71
  6.54
  6.38
  6.24
  6.12
  6.01
  5.91
  5.82
  5.73
  5.66
  5.59
  5.54
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
Revenue, $m
  10,534
  11,335
  12,167
  13,031
  13,930
  14,864
  15,835
  16,846
  17,897
  18,993
  20,134
  21,323
  22,563
  23,857
  25,207
  26,618
  28,091
  29,631
  31,241
  32,925
  34,687
  36,531
  38,461
  40,483
  42,600
  44,818
  47,143
  49,579
  52,133
  54,811
  57,618
Variable operating expenses, $m
 
  7,423
  7,945
  8,488
  9,051
  9,637
  10,247
  10,881
  11,541
  12,228
  12,944
  13,378
  14,156
  14,968
  15,815
  16,700
  17,625
  18,591
  19,601
  20,657
  21,763
  22,920
  24,131
  25,399
  26,728
  28,119
  29,578
  31,107
  32,709
  34,389
  36,150
Fixed operating expenses, $m
 
  1,444
  1,480
  1,517
  1,555
  1,594
  1,634
  1,675
  1,717
  1,760
  1,804
  1,849
  1,895
  1,942
  1,991
  2,041
  2,092
  2,144
  2,198
  2,252
  2,309
  2,367
  2,426
  2,486
  2,548
  2,612
  2,678
  2,744
  2,813
  2,883
  2,955
Total operating expenses, $m
  8,296
  8,867
  9,425
  10,005
  10,606
  11,231
  11,881
  12,556
  13,258
  13,988
  14,748
  15,227
  16,051
  16,910
  17,806
  18,741
  19,717
  20,735
  21,799
  22,909
  24,072
  25,287
  26,557
  27,885
  29,276
  30,731
  32,256
  33,851
  35,522
  37,272
  39,105
Operating income, $m
  2,238
  2,467
  2,741
  3,026
  3,323
  3,632
  3,954
  4,290
  4,640
  5,005
  5,386
  6,096
  6,512
  6,946
  7,401
  7,877
  8,375
  8,896
  9,442
  10,015
  10,615
  11,244
  11,905
  12,597
  13,324
  14,087
  14,887
  15,728
  16,611
  17,539
  18,513
EBITDA, $m
  3,360
  3,742
  4,086
  4,445
  4,818
  5,206
  5,611
  6,032
  6,472
  6,930
  7,408
  7,907
  8,428
  8,972
  9,542
  10,137
  10,760
  11,413
  12,096
  12,811
  13,561
  14,347
  15,171
  16,035
  16,942
  17,893
  18,891
  19,939
  21,039
  22,193
  23,406
Interest expense (income), $m
  189
  315
  351
  390
  429
  470
  513
  558
  604
  652
  702
  755
  809
  866
  925
  987
  1,052
  1,119
  1,190
  1,263
  1,341
  1,421
  1,506
  1,594
  1,687
  1,784
  1,885
  1,992
  2,103
  2,220
  2,343
Earnings before tax, $m
  2,048
  2,153
  2,390
  2,637
  2,894
  3,162
  3,441
  3,732
  4,036
  4,353
  4,684
  5,341
  5,703
  6,081
  6,476
  6,890
  7,323
  7,777
  8,253
  8,752
  9,275
  9,823
  10,399
  11,003
  11,637
  12,303
  13,002
  13,736
  14,508
  15,318
  16,169
Tax expense, $m
  551
  581
  645
  712
  781
  854
  929
  1,008
  1,090
  1,175
  1,265
  1,442
  1,540
  1,642
  1,749
  1,860
  1,977
  2,100
  2,228
  2,363
  2,504
  2,652
  2,808
  2,971
  3,142
  3,322
  3,511
  3,709
  3,917
  4,136
  4,366
Net income, $m
  1,500
  1,571
  1,744
  1,925
  2,113
  2,308
  2,512
  2,725
  2,946
  3,178
  3,419
  3,899
  4,163
  4,439
  4,727
  5,030
  5,346
  5,677
  6,025
  6,389
  6,770
  7,171
  7,591
  8,032
  8,495
  8,981
  9,492
  10,028
  10,591
  11,182
  11,804

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  524
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  19,332
  20,240
  21,726
  23,270
  24,874
  26,542
  28,277
  30,082
  31,960
  33,915
  35,953
  38,076
  40,291
  42,601
  45,013
  47,531
  50,162
  52,912
  55,787
  58,794
  61,940
  65,233
  68,680
  72,290
  76,071
  80,033
  84,184
  88,534
  93,095
  97,876
  102,890
Adjusted assets (=assets-cash), $m
  18,808
  20,240
  21,726
  23,270
  24,874
  26,542
  28,277
  30,082
  31,960
  33,915
  35,953
  38,076
  40,291
  42,601
  45,013
  47,531
  50,162
  52,912
  55,787
  58,794
  61,940
  65,233
  68,680
  72,290
  76,071
  80,033
  84,184
  88,534
  93,095
  97,876
  102,890
Revenue / Adjusted assets
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
  0.560
Average production assets, $m
  11,813
  12,706
  13,639
  14,608
  15,615
  16,662
  17,751
  18,884
  20,063
  21,291
  22,570
  23,903
  25,293
  26,743
  28,257
  29,838
  31,490
  33,216
  35,021
  36,909
  38,884
  40,951
  43,115
  45,381
  47,755
  50,241
  52,847
  55,578
  58,441
  61,443
  64,590
Working capital, $m
  402
  510
  547
  586
  627
  669
  713
  758
  805
  855
  906
  960
  1,015
  1,074
  1,134
  1,198
  1,264
  1,333
  1,406
  1,482
  1,561
  1,644
  1,731
  1,822
  1,917
  2,017
  2,121
  2,231
  2,346
  2,466
  2,593
Total debt, $m
  9,515
  10,040
  11,129
  12,261
  13,437
  14,660
  15,931
  17,254
  18,631
  20,064
  21,557
  23,114
  24,737
  26,431
  28,198
  30,044
  31,973
  33,989
  36,096
  38,300
  40,606
  43,020
  45,547
  48,193
  50,964
  53,868
  56,911
  60,100
  63,443
  66,947
  70,622
Total liabilities, $m
  14,311
  14,836
  15,925
  17,057
  18,233
  19,456
  20,727
  22,050
  23,427
  24,860
  26,353
  27,910
  29,533
  31,227
  32,994
  34,840
  36,769
  38,785
  40,892
  43,096
  45,402
  47,816
  50,343
  52,989
  55,760
  58,664
  61,707
  64,896
  68,239
  71,743
  75,418
Total equity, $m
  5,021
  5,404
  5,801
  6,213
  6,641
  7,087
  7,550
  8,032
  8,533
  9,055
  9,599
  10,166
  10,758
  11,375
  12,018
  12,691
  13,393
  14,128
  14,895
  15,698
  16,538
  17,417
  18,338
  19,302
  20,311
  21,369
  22,477
  23,639
  24,856
  26,133
  27,472
Total liabilities and equity, $m
  19,332
  20,240
  21,726
  23,270
  24,874
  26,543
  28,277
  30,082
  31,960
  33,915
  35,952
  38,076
  40,291
  42,602
  45,012
  47,531
  50,162
  52,913
  55,787
  58,794
  61,940
  65,233
  68,681
  72,291
  76,071
  80,033
  84,184
  88,535
  93,095
  97,876
  102,890
Debt-to-equity ratio
  1.895
  1.860
  1.920
  1.970
  2.020
  2.070
  2.110
  2.150
  2.180
  2.220
  2.250
  2.270
  2.300
  2.320
  2.350
  2.370
  2.390
  2.410
  2.420
  2.440
  2.460
  2.470
  2.480
  2.500
  2.510
  2.520
  2.530
  2.540
  2.550
  2.560
  2.570
Adjusted equity ratio
  0.262
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,500
  1,571
  1,744
  1,925
  2,113
  2,308
  2,512
  2,725
  2,946
  3,178
  3,419
  3,899
  4,163
  4,439
  4,727
  5,030
  5,346
  5,677
  6,025
  6,389
  6,770
  7,171
  7,591
  8,032
  8,495
  8,981
  9,492
  10,028
  10,591
  11,182
  11,804
Depreciation, amort., depletion, $m
  1,122
  1,274
  1,345
  1,418
  1,495
  1,574
  1,656
  1,742
  1,832
  1,925
  2,022
  1,811
  1,916
  2,026
  2,141
  2,260
  2,386
  2,516
  2,653
  2,796
  2,946
  3,102
  3,266
  3,438
  3,618
  3,806
  4,004
  4,210
  4,427
  4,655
  4,893
Funds from operations, $m
  2,820
  2,846
  3,089
  3,343
  3,607
  3,882
  4,169
  4,467
  4,778
  5,102
  5,441
  5,710
  6,079
  6,465
  6,868
  7,290
  7,732
  8,194
  8,678
  9,185
  9,716
  10,273
  10,857
  11,470
  12,113
  12,787
  13,495
  14,238
  15,018
  15,837
  16,697
Change in working capital, $m
  47
  36
  37
  39
  40
  42
  44
  45
  47
  49
  51
  54
  56
  58
  61
  63
  66
  69
  72
  76
  79
  83
  87
  91
  95
  100
  105
  110
  115
  120
  126
Cash from operations, $m
  2,773
  2,810
  3,052
  3,304
  3,567
  3,840
  4,125
  4,421
  4,731
  5,053
  5,390
  5,657
  6,023
  6,407
  6,807
  7,227
  7,665
  8,124
  8,605
  9,109
  9,637
  10,190
  10,771
  11,379
  12,018
  12,687
  13,390
  14,128
  14,903
  15,716
  16,571
Maintenance CAPEX, $m
  0
  -895
  -963
  -1,033
  -1,107
  -1,183
  -1,262
  -1,345
  -1,431
  -1,520
  -1,613
  -1,710
  -1,811
  -1,916
  -2,026
  -2,141
  -2,260
  -2,386
  -2,516
  -2,653
  -2,796
  -2,946
  -3,102
  -3,266
  -3,438
  -3,618
  -3,806
  -4,004
  -4,210
  -4,427
  -4,655
New CAPEX, $m
  -1,465
  -893
  -933
  -969
  -1,007
  -1,047
  -1,089
  -1,133
  -1,179
  -1,228
  -1,279
  -1,333
  -1,390
  -1,450
  -1,514
  -1,581
  -1,652
  -1,726
  -1,805
  -1,888
  -1,975
  -2,067
  -2,164
  -2,266
  -2,374
  -2,487
  -2,606
  -2,731
  -2,863
  -3,002
  -3,147
Cash from investing activities, $m
  -1,770
  -1,788
  -1,896
  -2,002
  -2,114
  -2,230
  -2,351
  -2,478
  -2,610
  -2,748
  -2,892
  -3,043
  -3,201
  -3,366
  -3,540
  -3,722
  -3,912
  -4,112
  -4,321
  -4,541
  -4,771
  -5,013
  -5,266
  -5,532
  -5,812
  -6,105
  -6,412
  -6,735
  -7,073
  -7,429
  -7,802
Free cash flow, $m
  1,003
  1,022
  1,157
  1,302
  1,453
  1,610
  1,774
  1,944
  2,121
  2,305
  2,498
  2,614
  2,822
  3,040
  3,267
  3,505
  3,753
  4,013
  4,284
  4,568
  4,866
  5,177
  5,504
  5,847
  6,206
  6,583
  6,978
  7,394
  7,830
  8,288
  8,768
Issuance/(repayment) of debt, $m
  357
  1,049
  1,089
  1,132
  1,176
  1,223
  1,271
  1,323
  1,377
  1,434
  1,493
  1,557
  1,623
  1,694
  1,768
  1,846
  1,929
  2,016
  2,107
  2,204
  2,306
  2,414
  2,527
  2,646
  2,772
  2,904
  3,043
  3,189
  3,343
  3,505
  3,675
Issuance/(repurchase) of shares, $m
  -89
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  213
  1,049
  1,089
  1,132
  1,176
  1,223
  1,271
  1,323
  1,377
  1,434
  1,493
  1,557
  1,623
  1,694
  1,768
  1,846
  1,929
  2,016
  2,107
  2,204
  2,306
  2,414
  2,527
  2,646
  2,772
  2,904
  3,043
  3,189
  3,343
  3,505
  3,675
Total cash flow (excl. dividends), $m
  1,233
  2,071
  2,246
  2,433
  2,629
  2,833
  3,045
  3,267
  3,498
  3,739
  3,991
  4,170
  4,446
  4,734
  5,035
  5,351
  5,682
  6,028
  6,391
  6,772
  7,172
  7,591
  8,031
  8,493
  8,978
  9,487
  10,021
  10,583
  11,173
  11,792
  12,443
Retained Cash Flow (-), $m
  -632
  -383
  -397
  -412
  -428
  -445
  -463
  -482
  -501
  -522
  -544
  -567
  -591
  -617
  -644
  -672
  -702
  -734
  -768
  -803
  -840
  -879
  -920
  -964
  -1,010
  -1,058
  -1,108
  -1,162
  -1,218
  -1,277
  -1,339
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,688
  1,849
  2,021
  2,201
  2,387
  2,582
  2,785
  2,996
  3,217
  3,447
  3,603
  3,854
  4,117
  4,391
  4,679
  4,979
  5,294
  5,624
  5,969
  6,332
  6,712
  7,111
  7,529
  7,968
  8,429
  8,913
  9,421
  9,955
  10,516
  11,105
Discount rate, %
 
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.85
  11.40
  11.97
  12.57
  13.19
  13.85
  14.55
  15.27
  16.04
  16.84
  17.68
  18.57
  19.49
  20.47
  21.49
  22.57
  23.69
  24.88
  26.12
  27.43
  28.80
  30.24
  31.75
  33.34
PV of cash for distribution, $m
 
  1,561
  1,571
  1,564
  1,538
  1,493
  1,431
  1,354
  1,263
  1,163
  1,055
  922
  812
  704
  600
  502
  413
  332
  262
  202
  153
  113
  81
  57
  39
  25
  16
  10
  6
  4
  2
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Praxair, Inc. is an industrial gas company. The Company's operations are organized into five segments, four of which have been determined on a geographic basis of segmentation: North America, Europe, South America and Asia. In addition, it operates its surface technologies business through its subsidiary, Praxair Surface Technologies, Inc., which represents the fifth segment. Its operations consist of two product lines: industrial gases and surface technologies. Its industrial gases product line centers on the manufacturing and distribution of atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases). It also designs, engineers and builds equipment that produces industrial gases primarily for internal use. Its Surface Technologies segment, operated through Praxair Surface Technologies, Inc., supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders.

FINANCIAL RATIOS  of  Praxair (PX)

Valuation Ratios
P/E Ratio 30.7
Price to Sales 4.4
Price to Book 9.2
Price to Tangible Book
Price to Cash Flow 16.6
Price to Free Cash Flow 35.3
Growth Rates
Sales Growth Rate -2.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -4.9%
Cap. Spend. - 3 Yr. Gr. Rate -6.2%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 177.6%
Total Debt to Equity 189.5%
Interest Coverage 12
Management Effectiveness
Return On Assets 8.7%
Ret/ On Assets - 3 Yr. Avg. 8.9%
Return On Total Capital 10.7%
Ret/ On T. Cap. - 3 Yr. Avg. 10.9%
Return On Equity 31.9%
Return On Equity - 3 Yr. Avg. 30.2%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 44.4%
Gross Margin - 3 Yr. Avg. 44.1%
EBITDA Margin 31.9%
EBITDA Margin - 3 Yr. Avg. 31.5%
Operating Margin 21.2%
Oper. Margin - 3 Yr. Avg. 21.3%
Pre-Tax Margin 19.4%
Pre-Tax Margin - 3 Yr. Avg. 19.7%
Net Profit Margin 14.2%
Net Profit Margin - 3 Yr. Avg. 14.1%
Effective Tax Rate 26.9%
Eff/ Tax Rate - 3 Yr. Avg. 28%
Payout Ratio 57.1%

PX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PX stock intrinsic value calculation we used $10534 million for the last fiscal year's total revenue generated by Praxair. The default revenue input number comes from 2016 income statement of Praxair. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our PX stock valuation model: a) initial revenue growth rate of 7.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.1%, whose default value for PX is calculated based on our internal credit rating of Praxair, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Praxair.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of PX stock the variable cost ratio is equal to 65.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1409 million in the base year in the intrinsic value calculation for PX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Praxair.

Corporate tax rate of 27% is the nominal tax rate for Praxair. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the PX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for PX are equal to 112.1%.

Life of production assets of 13.2 years is the average useful life of capital assets used in Praxair operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for PX is equal to 4.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5021 million for Praxair - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 287.432 million for Praxair is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Praxair at the current share price and the inputted number of shares is $46.5 billion.

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COMPANY NEWS

▶ What Praxairs Short Interest Suggests before 4Q17 Earnings   [Jan-19-18 10:33AM  Market Realist]
▶ APD to Acquire Coal Gasification Technology from Shell   [Jan-16-18 09:25AM  Market Realist]
▶ Can PPG Industries Beat Analysts Earnings Estimates?   [Jan-12-18 09:10AM  Market Realist]
▶ RPM Internationals Latest Dividend: All the Key Dates   [Jan-10-18 11:50AM  Market Realist]
▶ 5 Companies Reach 52-Week Highs   [Jan-02-18 02:39PM  GuruFocus.com]
▶ How Safe Is Praxair's Dividend?   [Dec-29-17 04:33PM  Motley Fool]
▶ 10 Big Dividend Hikes That Will Ring in 2018   [Dec-23-17 09:20AM  ETF Daily News]
▶ For Praxair, I Look For a Sideways Trading Range   [Dec-19-17 02:20PM  TheStreet.com]
▶ Praxair Announces Price Increases Effective January 1, 2018   [Dec-15-17 08:30AM  Business Wire]
▶ Hate Risk? You'll Love These 3 Stocks   [07:42AM  Motley Fool]
▶ Heres How Praxairs Dividend Yield Is Trending   [Nov-30-17 10:32AM  Market Realist]
▶ Praxair: 4Q17 Dividend Details and Key Dates   [09:02AM  Market Realist]
▶ Praxair Hikes Helium Prices across Regions   [Nov-21-17 07:33AM  Market Realist]
▶ Praxair Announces Helium Price Increases   [Nov-15-17 08:30AM  Business Wire]
▶ Linde plcs Exchange Offer Acceptance Ratio Reaches 75.7%   [Nov-10-17 07:00AM  Business Wire]
▶ DowDuPont And Other Great Materials Income Stocks   [Nov-05-17 01:02PM  Simply Wall St.]
▶ Stocks With Rising Relative Price Strength: Praxair   [03:00AM  Investor's Business Daily]
▶ Praxair, Inc. to Host Earnings Call   [08:40AM  ACCESSWIRE]
▶ Praxair beats Street 3Q forecasts   [06:36AM  Associated Press]
▶ Praxair Reports Third-Quarter 2017 Results   [06:01AM  Business Wire]
▶ Praxair Signs Contract with Huali Microelectronics   [Oct-16-17 08:29AM  Market Realist]
Financial statements of PX
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