Intrinsic value of Praxair - PX

Previous Close

$165.26

  Intrinsic Value

$69.10

stock screener

  Rating & Target

str. sell

-58%

Previous close

$165.26

 
Intrinsic value

$69.10

 
Up/down potential

-58%

 
Rating

str. sell

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

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 47.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.60
  8.24
  7.92
  7.62
  7.36
  7.13
  6.91
  6.72
  6.55
  6.39
  6.26
  6.13
  6.02
  5.92
  5.82
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
  5.39
  5.35
  5.32
  5.29
  5.26
  5.23
  5.21
  5.19
  5.17
Revenue, $m
  12,421
  13,444
  14,508
  15,614
  16,764
  17,959
  19,200
  20,491
  21,833
  23,229
  24,682
  26,195
  27,771
  29,414
  31,126
  32,913
  34,779
  36,726
  38,761
  40,888
  43,111
  45,437
  47,869
  50,416
  53,081
  55,872
  58,796
  61,859
  65,068
  68,432
Variable operating expenses, $m
  9,246
  9,976
  10,736
  11,526
  12,346
  13,199
  14,085
  15,007
  15,965
  16,962
  17,620
  18,700
  19,826
  20,998
  22,221
  23,497
  24,828
  26,219
  27,672
  29,190
  30,777
  32,437
  34,174
  35,992
  37,894
  39,887
  41,974
  44,161
  46,452
  48,853
Fixed operating expenses, $m
  474
  485
  495
  506
  517
  529
  540
  552
  564
  577
  589
  602
  616
  629
  643
  657
  672
  686
  702
  717
  733
  749
  765
  782
  799
  817
  835
  853
  872
  891
Total operating expenses, $m
  9,720
  10,461
  11,231
  12,032
  12,863
  13,728
  14,625
  15,559
  16,529
  17,539
  18,209
  19,302
  20,442
  21,627
  22,864
  24,154
  25,500
  26,905
  28,374
  29,907
  31,510
  33,186
  34,939
  36,774
  38,693
  40,704
  42,809
  45,014
  47,324
  49,744
Operating income, $m
  2,701
  2,983
  3,277
  3,583
  3,900
  4,231
  4,574
  4,932
  5,303
  5,690
  6,472
  6,892
  7,330
  7,786
  8,262
  8,759
  9,279
  9,821
  10,388
  10,981
  11,601
  12,251
  12,930
  13,642
  14,387
  15,168
  15,987
  16,845
  17,744
  18,687
EBITDA, $m
  4,764
  5,185
  5,623
  6,078
  6,552
  7,044
  7,556
  8,089
  8,643
  9,219
  9,819
  10,444
  11,095
  11,775
  12,483
  13,222
  13,995
  14,801
  15,644
  16,525
  17,447
  18,412
  19,421
  20,478
  21,585
  22,745
  23,959
  25,233
  26,567
  27,967
Interest expense (income), $m
  189
  486
  553
  623
  695
  770
  849
  930
  1,015
  1,102
  1,194
  1,289
  1,388
  1,491
  1,598
  1,710
  1,826
  1,948
  2,075
  2,208
  2,346
  2,491
  2,642
  2,801
  2,966
  3,140
  3,321
  3,511
  3,710
  3,919
  4,137
Earnings before tax, $m
  2,215
  2,430
  2,654
  2,887
  3,130
  3,382
  3,644
  3,917
  4,201
  4,497
  5,183
  5,504
  5,839
  6,188
  6,552
  6,933
  7,330
  7,746
  8,180
  8,635
  9,110
  9,608
  10,130
  10,676
  11,248
  11,847
  12,476
  13,134
  13,825
  14,550
Tax expense, $m
  598
  656
  717
  780
  845
  913
  984
  1,058
  1,134
  1,214
  1,399
  1,486
  1,576
  1,671
  1,769
  1,872
  1,979
  2,091
  2,209
  2,331
  2,460
  2,594
  2,735
  2,882
  3,037
  3,199
  3,368
  3,546
  3,733
  3,929
Net income, $m
  1,617
  1,774
  1,938
  2,108
  2,285
  2,469
  2,660
  2,859
  3,067
  3,283
  3,784
  4,018
  4,262
  4,517
  4,783
  5,061
  5,351
  5,655
  5,972
  6,303
  6,651
  7,014
  7,395
  7,793
  8,211
  8,648
  9,107
  9,588
  10,093
  10,622

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  22,180
  24,007
  25,908
  27,883
  29,936
  32,069
  34,286
  36,590
  38,987
  41,480
  44,075
  46,776
  49,591
  52,524
  55,583
  58,774
  62,105
  65,583
  69,216
  73,014
  76,984
  81,137
  85,481
  90,028
  94,788
  99,772
  104,993
  110,462
  116,194
  122,200
Adjusted assets (=assets-cash), $m
  22,180
  24,007
  25,908
  27,883
  29,936
  32,069
  34,286
  36,590
  38,987
  41,480
  44,075
  46,776
  49,591
  52,524
  55,583
  58,774
  62,105
  65,583
  69,216
  73,014
  76,984
  81,137
  85,481
  90,028
  94,788
  99,772
  104,993
  110,462
  116,194
  122,200
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
Average production assets, $m
  16,842
  18,230
  19,673
  21,173
  22,732
  24,352
  26,035
  27,785
  29,605
  31,498
  33,469
  35,520
  37,657
  39,885
  42,207
  44,631
  47,160
  49,801
  52,560
  55,444
  58,459
  61,612
  64,911
  68,364
  71,978
  75,763
  79,727
  83,881
  88,233
  92,794
Working capital, $m
  -385
  -417
  -450
  -484
  -520
  -557
  -595
  -635
  -677
  -720
  -765
  -812
  -861
  -912
  -965
  -1,020
  -1,078
  -1,139
  -1,202
  -1,268
  -1,336
  -1,409
  -1,484
  -1,563
  -1,646
  -1,732
  -1,823
  -1,918
  -2,017
  -2,121
Total debt, $m
  10,241
  11,531
  12,873
  14,267
  15,717
  17,223
  18,788
  20,415
  22,107
  23,867
  25,699
  27,606
  29,593
  31,664
  33,824
  36,076
  38,428
  40,884
  43,449
  46,130
  48,933
  51,864
  54,932
  58,142
  61,502
  65,021
  68,707
  72,568
  76,615
  80,855
Total liabilities, $m
  15,659
  16,949
  18,291
  19,685
  21,135
  22,641
  24,206
  25,833
  27,525
  29,285
  31,117
  33,024
  35,011
  37,082
  39,242
  41,494
  43,846
  46,302
  48,867
  51,548
  54,351
  57,282
  60,350
  63,560
  66,920
  70,439
  74,125
  77,986
  82,033
  86,273
Total equity, $m
  6,521
  7,058
  7,617
  8,198
  8,801
  9,428
  10,080
  10,758
  11,462
  12,195
  12,958
  13,752
  14,580
  15,442
  16,341
  17,280
  18,259
  19,281
  20,350
  21,466
  22,633
  23,854
  25,131
  26,468
  27,868
  29,333
  30,868
  32,476
  34,161
  35,927
Total liabilities and equity, $m
  22,180
  24,007
  25,908
  27,883
  29,936
  32,069
  34,286
  36,591
  38,987
  41,480
  44,075
  46,776
  49,591
  52,524
  55,583
  58,774
  62,105
  65,583
  69,217
  73,014
  76,984
  81,136
  85,481
  90,028
  94,788
  99,772
  104,993
  110,462
  116,194
  122,200
Debt-to-equity ratio
  1.570
  1.630
  1.690
  1.740
  1.790
  1.830
  1.860
  1.900
  1.930
  1.960
  1.980
  2.010
  2.030
  2.050
  2.070
  2.090
  2.100
  2.120
  2.140
  2.150
  2.160
  2.170
  2.190
  2.200
  2.210
  2.220
  2.230
  2.230
  2.240
  2.250
Adjusted equity ratio
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,617
  1,774
  1,938
  2,108
  2,285
  2,469
  2,660
  2,859
  3,067
  3,283
  3,784
  4,018
  4,262
  4,517
  4,783
  5,061
  5,351
  5,655
  5,972
  6,303
  6,651
  7,014
  7,395
  7,793
  8,211
  8,648
  9,107
  9,588
  10,093
  10,622
Depreciation, amort., depletion, $m
  2,063
  2,202
  2,346
  2,496
  2,652
  2,814
  2,982
  3,157
  3,339
  3,528
  3,347
  3,552
  3,766
  3,988
  4,221
  4,463
  4,716
  4,980
  5,256
  5,544
  5,846
  6,161
  6,491
  6,836
  7,198
  7,576
  7,973
  8,388
  8,823
  9,279
Funds from operations, $m
  3,680
  3,976
  4,284
  4,604
  4,937
  5,283
  5,642
  6,017
  6,406
  6,811
  7,131
  7,570
  8,028
  8,506
  9,004
  9,524
  10,067
  10,635
  11,228
  11,848
  12,496
  13,175
  13,886
  14,629
  15,409
  16,225
  17,080
  17,976
  18,916
  19,901
Change in working capital, $m
  -30
  -32
  -33
  -34
  -36
  -37
  -38
  -40
  -42
  -43
  -45
  -47
  -49
  -51
  -53
  -55
  -58
  -60
  -63
  -66
  -69
  -72
  -75
  -79
  -83
  -87
  -91
  -95
  -99
  -104
Cash from operations, $m
  3,710
  4,007
  4,317
  4,638
  4,972
  5,320
  5,681
  6,057
  6,447
  6,854
  7,176
  7,617
  8,077
  8,557
  9,057
  9,580
  10,125
  10,695
  11,291
  11,914
  12,565
  13,247
  13,961
  14,708
  15,491
  16,311
  17,171
  18,071
  19,015
  20,005
Maintenance CAPEX, $m
  -1,551
  -1,684
  -1,823
  -1,967
  -2,117
  -2,273
  -2,435
  -2,604
  -2,779
  -2,961
  -3,150
  -3,347
  -3,552
  -3,766
  -3,988
  -4,221
  -4,463
  -4,716
  -4,980
  -5,256
  -5,544
  -5,846
  -6,161
  -6,491
  -6,836
  -7,198
  -7,576
  -7,973
  -8,388
  -8,823
New CAPEX, $m
  -1,332
  -1,388
  -1,443
  -1,500
  -1,559
  -1,620
  -1,683
  -1,750
  -1,820
  -1,893
  -1,970
  -2,052
  -2,137
  -2,227
  -2,323
  -2,423
  -2,529
  -2,641
  -2,759
  -2,884
  -3,015
  -3,153
  -3,299
  -3,453
  -3,614
  -3,785
  -3,964
  -4,153
  -4,352
  -4,561
Cash from investing activities, $m
  -2,883
  -3,072
  -3,266
  -3,467
  -3,676
  -3,893
  -4,118
  -4,354
  -4,599
  -4,854
  -5,120
  -5,399
  -5,689
  -5,993
  -6,311
  -6,644
  -6,992
  -7,357
  -7,739
  -8,140
  -8,559
  -8,999
  -9,460
  -9,944
  -10,450
  -10,983
  -11,540
  -12,126
  -12,740
  -13,384
Free cash flow, $m
  827
  935
  1,050
  1,171
  1,296
  1,427
  1,562
  1,703
  1,849
  2,001
  2,056
  2,219
  2,388
  2,563
  2,746
  2,936
  3,133
  3,338
  3,552
  3,774
  4,006
  4,248
  4,501
  4,765
  5,040
  5,328
  5,630
  5,945
  6,275
  6,621
Issuance/(repayment) of debt, $m
  1,241
  1,290
  1,342
  1,395
  1,449
  1,506
  1,565
  1,627
  1,692
  1,760
  1,832
  1,907
  1,987
  2,071
  2,159
  2,253
  2,352
  2,456
  2,565
  2,681
  2,803
  2,932
  3,067
  3,210
  3,361
  3,519
  3,686
  3,861
  4,046
  4,241
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  1,241
  1,290
  1,342
  1,395
  1,449
  1,506
  1,565
  1,627
  1,692
  1,760
  1,832
  1,907
  1,987
  2,071
  2,159
  2,253
  2,352
  2,456
  2,565
  2,681
  2,803
  2,932
  3,067
  3,210
  3,361
  3,519
  3,686
  3,861
  4,046
  4,241
Total cash flow (excl. dividends), $m
  2,068
  2,226
  2,392
  2,565
  2,745
  2,933
  3,127
  3,330
  3,541
  3,761
  3,887
  4,126
  4,375
  4,634
  4,905
  5,188
  5,484
  5,793
  6,117
  6,455
  6,809
  7,180
  7,568
  7,975
  8,401
  8,847
  9,316
  9,807
  10,321
  10,861
Retained Cash Flow (-), $m
  -503
  -537
  -559
  -581
  -604
  -627
  -652
  -678
  -705
  -733
  -763
  -794
  -827
  -862
  -899
  -938
  -979
  -1,023
  -1,068
  -1,116
  -1,167
  -1,221
  -1,277
  -1,337
  -1,399
  -1,465
  -1,535
  -1,608
  -1,685
  -1,766
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
  57
  62
  67
  73
  78
  84
  90
  96
  102
  109
  116
  123
  131
  139
  147
  156
  165
  174
  184
  194
  204
  216
  227
  239
  252
  265
  279
  294
  309
  325
Cash available for distribution, $m
  1,565
  1,688
  1,833
  1,985
  2,142
  2,305
  2,476
  2,653
  2,836
  3,028
  3,125
  3,332
  3,547
  3,772
  4,006
  4,250
  4,505
  4,771
  5,049
  5,339
  5,642
  5,959
  6,291
  6,638
  7,001
  7,382
  7,781
  8,199
  8,636
  9,095
Discount rate, %
  6.90
  7.25
  7.61
  7.99
  8.39
  8.81
  9.25
  9.71
  10.19
  10.70
  11.24
  11.80
  12.39
  13.01
  13.66
  14.34
  15.06
  15.81
  16.61
  17.44
  18.31
  19.22
  20.18
  21.19
  22.25
  23.37
  24.53
  25.76
  27.05
  28.40
PV of cash for distribution, $m
  1,464
  1,468
  1,471
  1,459
  1,432
  1,389
  1,333
  1,264
  1,184
  1,095
  968
  874
  777
  681
  587
  498
  415
  339
  273
  214
  165
  125
  92
  66
  46
  31
  21
  13
  8
  5
Current shareholders' claim on cash, %
  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 31.4
Price to Sales 4.5
Price to Book 9.4
Price to Tangible Book
Price to Cash Flow 17
Price to Free Cash Flow 36
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 $11437 million for the last fiscal year's total revenue generated by Praxair. The default revenue input number comes from 2017 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 8.6% 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 6.9%, 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 74.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $464 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 5.4% 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 0.5%.

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 135.6%.

Life of production assets of 10 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 -3.1%. 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 - $6018 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 286 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 $47.3 billion.

RELATED COMPANIES Price Int.Val. Rating
APD Air Products&C 154.40 56.46  str.sell
LYB LyondellBasell 108.56 320.75  str.buy

COMPANY NEWS

▶ Top Stock Reports for Wells Fargo, IBM & Abbott   [Jul-19-18 02:01PM  Zacks]
▶ [$$] Linde to Sell Americas Assets to Messer and CVC for $3.3 Billion   [Jul-16-18 11:40AM  The Wall Street Journal]
▶ Company News For Jul 6, 2018   [Jul-06-18 10:05AM  Zacks]
▶ [$$] Landing a deal: Jet mergers are tough   [12:15AM  Financial Times]
▶ Praxair, Intel rise; Embraer, TiVo fall   [Jul-05-18 04:59PM  Associated Press]
▶ [$$] The Linde-Praxair Merger Explained   [11:49AM  The Wall Street Journal]
▶ [$$] Praxair to Sell Majority of European Gas Assets   [03:00AM  The Wall Street Journal]
▶ [$$] Carlyle sued over alleged theft of trade secrets   [Jun-28-18 03:12AM  Financial Times]
▶ When Should You Buy Praxair Inc (NYSE:PX)?   [Jun-21-18 12:48PM  Simply Wall St.]
▶ [$$] Taiyo Nippon, Carlye Likely Buyers for Linde, Praxair Assets   [Jun-20-18 10:55AM  The Wall Street Journal]
▶ Linde-Praxair deal gets Brazil antitrust nod   [Jun-13-18 10:39AM  Reuters]
▶ 6 Dividend Aristocrats to Buy as Trump Irks G7   [Jun-11-18 01:33PM  InvestorPlace]
▶ The 7 Best Long-Term Stocks for Risk-Off Investors   [May-29-18 10:24AM  InvestorPlace]
▶ Praxair Announces TruForm AMbition Grant Recipients   [May-23-18 08:30AM  Business Wire]
▶ Active Traders Remain Bullish on Materials   [May-22-18 10:52AM  Investopedia]
▶ Praxair, Inc. to Host Earnings Call   [09:50AM  ACCESSWIRE]
▶ Praxair: 1Q Earnings Snapshot   [06:13AM  Associated Press]
▶ Praxair Reports First-Quarter 2018 Results   [06:01AM  Business Wire]
▶ Yara and BASF open $600M ammonia plant near Houston   [09:18AM  American City Business Journals]
▶ If You Like Dividends, You Should Love These 3 Stocks   [Apr-06-18 07:02AM  Motley Fool]
▶ What You Must Know About Praxair Incs (NYSE:PX) ROE   [Mar-27-18 06:58PM  Simply Wall St.]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.