Intrinsic value of Praxair - PX

Previous Close

$164.50

  Intrinsic Value

$68.82

stock screener

  Rating & Target

str. sell

-58%

Previous close

$164.50

 
Intrinsic value

$68.82

 
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 0001), $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
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.59
  6.43
  6.29
  6.16
  6.05
  5.94
  5.85
  5.76
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.36
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.17
  5.16
  5.14
Revenue, $m
  12,352
  13,303
  14,291
  15,319
  16,386
  17,496
  18,649
  19,849
  21,098
  22,398
  23,753
  25,164
  26,635
  28,170
  29,772
  31,444
  33,191
  35,017
  36,926
  38,921
  41,010
  43,195
  45,482
  47,877
  50,385
  53,013
  55,767
  58,652
  61,677
  64,848
Variable operating expenses, $m
  9,184
  9,862
  10,567
  11,299
  12,060
  12,851
  13,674
  14,529
  15,419
  16,346
  16,933
  17,939
  18,988
  20,082
  21,224
  22,417
  23,662
  24,964
  26,324
  27,747
  29,236
  30,793
  32,424
  34,131
  35,920
  37,793
  39,756
  41,813
  43,969
  46,230
Fixed operating expenses, $m
  476
  487
  497
  508
  520
  531
  543
  555
  567
  579
  592
  605
  618
  632
  646
  660
  675
  689
  705
  720
  736
  752
  769
  786
  803
  821
  839
  857
  876
  895
Total operating expenses, $m
  9,660
  10,349
  11,064
  11,807
  12,580
  13,382
  14,217
  15,084
  15,986
  16,925
  17,525
  18,544
  19,606
  20,714
  21,870
  23,077
  24,337
  25,653
  27,029
  28,467
  29,972
  31,545
  33,193
  34,917
  36,723
  38,614
  40,595
  42,670
  44,845
  47,125
Operating income, $m
  2,691
  2,954
  3,227
  3,511
  3,806
  4,113
  4,433
  4,766
  5,112
  5,473
  6,227
  6,620
  7,029
  7,456
  7,902
  8,368
  8,855
  9,364
  9,897
  10,454
  11,038
  11,649
  12,289
  12,960
  13,663
  14,400
  15,172
  15,982
  16,832
  17,723
EBITDA, $m
  4,194
  4,543
  4,906
  5,284
  5,676
  6,084
  6,509
  6,950
  7,410
  7,889
  8,389
  8,909
  9,452
  10,019
  10,611
  11,229
  11,875
  12,550
  13,257
  13,996
  14,770
  15,580
  16,428
  17,316
  18,248
  19,223
  20,246
  21,319
  22,444
  23,624
Interest expense (income), $m
  189
  486
  548
  613
  680
  750
  823
  899
  977
  1,059
  1,144
  1,232
  1,324
  1,421
  1,521
  1,625
  1,734
  1,848
  1,967
  2,091
  2,221
  2,357
  2,499
  2,648
  2,804
  2,967
  3,138
  3,316
  3,504
  3,700
  3,906
Earnings before tax, $m
  2,205
  2,406
  2,614
  2,831
  3,056
  3,290
  3,535
  3,789
  4,053
  4,329
  4,995
  5,295
  5,608
  5,935
  6,277
  6,633
  7,007
  7,397
  7,805
  8,233
  8,681
  9,150
  9,641
  10,156
  10,696
  11,262
  11,856
  12,478
  13,131
  13,817
Tax expense, $m
  595
  650
  706
  764
  825
  888
  954
  1,023
  1,094
  1,169
  1,349
  1,430
  1,514
  1,602
  1,695
  1,791
  1,892
  1,997
  2,107
  2,223
  2,344
  2,470
  2,603
  2,742
  2,888
  3,041
  3,201
  3,369
  3,545
  3,730
Net income, $m
  1,610
  1,756
  1,908
  2,066
  2,231
  2,402
  2,580
  2,766
  2,959
  3,160
  3,646
  3,865
  4,094
  4,333
  4,582
  4,842
  5,115
  5,400
  5,698
  6,010
  6,337
  6,679
  7,038
  7,414
  7,808
  8,221
  8,655
  9,109
  9,586
  10,086

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
  22,057
  23,755
  25,520
  27,355
  29,261
  31,242
  33,302
  35,445
  37,675
  39,997
  42,415
  44,935
  47,563
  50,304
  53,164
  56,151
  59,270
  62,530
  65,939
  69,503
  73,231
  77,133
  81,218
  85,495
  89,974
  94,666
  99,583
  104,736
  110,137
  115,800
Adjusted assets (=assets-cash), $m
  22,057
  23,755
  25,520
  27,355
  29,261
  31,242
  33,302
  35,445
  37,675
  39,997
  42,415
  44,935
  47,563
  50,304
  53,164
  56,151
  59,270
  62,530
  65,939
  69,503
  73,231
  77,133
  81,218
  85,495
  89,974
  94,666
  99,583
  104,736
  110,137
  115,800
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
  14,724
  15,857
  17,035
  18,260
  19,532
  20,855
  22,230
  23,661
  25,149
  26,699
  28,313
  29,995
  31,749
  33,579
  35,488
  37,482
  39,564
  41,740
  44,015
  46,394
  48,883
  51,488
  54,215
  57,069
  60,059
  63,192
  66,474
  69,913
  73,519
  77,299
Working capital, $m
  630
  678
  729
  781
  836
  892
  951
  1,012
  1,076
  1,142
  1,211
  1,283
  1,358
  1,437
  1,518
  1,604
  1,693
  1,786
  1,883
  1,985
  2,091
  2,203
  2,320
  2,442
  2,570
  2,704
  2,844
  2,991
  3,146
  3,307
Total debt, $m
  10,154
  11,353
  12,599
  13,894
  15,240
  16,639
  18,093
  19,606
  21,181
  22,820
  24,527
  26,306
  28,161
  30,096
  32,116
  34,224
  36,427
  38,728
  41,135
  43,651
  46,283
  49,038
  51,922
  54,941
  58,104
  61,417
  64,888
  68,526
  72,339
  76,337
Total liabilities, $m
  15,572
  16,771
  18,017
  19,312
  20,658
  22,057
  23,511
  25,024
  26,599
  28,238
  29,945
  31,724
  33,579
  35,514
  37,534
  39,642
  41,845
  44,146
  46,553
  49,069
  51,701
  54,456
  57,340
  60,359
  63,522
  66,835
  70,306
  73,944
  77,757
  81,755
Total equity, $m
  6,485
  6,984
  7,503
  8,042
  8,603
  9,185
  9,791
  10,421
  11,077
  11,759
  12,470
  13,211
  13,983
  14,789
  15,630
  16,508
  17,425
  18,384
  19,386
  20,434
  21,530
  22,677
  23,878
  25,135
  26,452
  27,832
  29,277
  30,792
  32,380
  34,045
Total liabilities and equity, $m
  22,057
  23,755
  25,520
  27,354
  29,261
  31,242
  33,302
  35,445
  37,676
  39,997
  42,415
  44,935
  47,562
  50,303
  53,164
  56,150
  59,270
  62,530
  65,939
  69,503
  73,231
  77,133
  81,218
  85,494
  89,974
  94,667
  99,583
  104,736
  110,137
  115,800
Debt-to-equity ratio
  1.570
  1.630
  1.680
  1.730
  1.770
  1.810
  1.850
  1.880
  1.910
  1.940
  1.970
  1.990
  2.010
  2.040
  2.050
  2.070
  2.090
  2.110
  2.120
  2.140
  2.150
  2.160
  2.170
  2.190
  2.200
  2.210
  2.220
  2.230
  2.230
  2.240
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
  1,610
  1,756
  1,908
  2,066
  2,231
  2,402
  2,580
  2,766
  2,959
  3,160
  3,646
  3,865
  4,094
  4,333
  4,582
  4,842
  5,115
  5,400
  5,698
  6,010
  6,337
  6,679
  7,038
  7,414
  7,808
  8,221
  8,655
  9,109
  9,586
  10,086
Depreciation, amort., depletion, $m
  1,503
  1,589
  1,679
  1,772
  1,870
  1,971
  2,076
  2,185
  2,298
  2,417
  2,161
  2,290
  2,424
  2,563
  2,709
  2,861
  3,020
  3,186
  3,360
  3,542
  3,732
  3,930
  4,139
  4,356
  4,585
  4,824
  5,074
  5,337
  5,612
  5,901
Funds from operations, $m
  3,113
  3,345
  3,587
  3,839
  4,101
  4,373
  4,656
  4,950
  5,257
  5,577
  5,808
  6,155
  6,518
  6,896
  7,291
  7,704
  8,135
  8,586
  9,058
  9,552
  10,069
  10,610
  11,177
  11,771
  12,393
  13,045
  13,729
  14,446
  15,198
  15,987
Change in working capital, $m
  47
  49
  50
  52
  54
  57
  59
  61
  64
  66
  69
  72
  75
  78
  82
  85
  89
  93
  97
  102
  106
  111
  117
  122
  128
  134
  140
  147
  154
  162
Cash from operations, $m
  3,066
  3,297
  3,537
  3,786
  4,046
  4,316
  4,597
  4,889
  5,194
  5,511
  5,739
  6,083
  6,442
  6,818
  7,209
  7,618
  8,046
  8,493
  8,961
  9,450
  9,962
  10,498
  11,060
  11,648
  12,265
  12,911
  13,589
  14,299
  15,044
  15,825
Maintenance CAPEX, $m
  -1,041
  -1,124
  -1,210
  -1,300
  -1,394
  -1,491
  -1,592
  -1,697
  -1,806
  -1,920
  -2,038
  -2,161
  -2,290
  -2,424
  -2,563
  -2,709
  -2,861
  -3,020
  -3,186
  -3,360
  -3,542
  -3,732
  -3,930
  -4,139
  -4,356
  -4,585
  -4,824
  -5,074
  -5,337
  -5,612
New CAPEX, $m
  -1,085
  -1,134
  -1,178
  -1,224
  -1,272
  -1,323
  -1,375
  -1,430
  -1,489
  -1,550
  -1,614
  -1,682
  -1,754
  -1,830
  -1,909
  -1,994
  -2,082
  -2,176
  -2,275
  -2,379
  -2,489
  -2,605
  -2,727
  -2,855
  -2,990
  -3,132
  -3,282
  -3,440
  -3,605
  -3,780
Cash from investing activities, $m
  -2,126
  -2,258
  -2,388
  -2,524
  -2,666
  -2,814
  -2,967
  -3,127
  -3,295
  -3,470
  -3,652
  -3,843
  -4,044
  -4,254
  -4,472
  -4,703
  -4,943
  -5,196
  -5,461
  -5,739
  -6,031
  -6,337
  -6,657
  -6,994
  -7,346
  -7,717
  -8,106
  -8,514
  -8,942
  -9,392
Free cash flow, $m
  940
  1,039
  1,148
  1,262
  1,380
  1,502
  1,630
  1,762
  1,899
  2,041
  2,086
  2,240
  2,399
  2,564
  2,737
  2,916
  3,102
  3,297
  3,499
  3,711
  3,932
  4,162
  4,403
  4,655
  4,918
  5,194
  5,483
  5,785
  6,101
  6,433
Issuance/(repayment) of debt, $m
  1,154
  1,199
  1,246
  1,295
  1,346
  1,399
  1,455
  1,513
  1,574
  1,639
  1,707
  1,779
  1,855
  1,935
  2,019
  2,109
  2,202
  2,302
  2,406
  2,516
  2,632
  2,755
  2,884
  3,019
  3,162
  3,313
  3,471
  3,638
  3,813
  3,998
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  
  1,154
  1,199
  1,246
  1,295
  1,346
  1,399
  1,455
  1,513
  1,574
  1,639
  1,707
  1,779
  1,855
  1,935
  2,019
  2,109
  2,202
  2,302
  2,406
  2,516
  2,632
  2,755
  2,884
  3,019
  3,162
  3,313
  3,471
  3,638
  3,813
  3,998
Total cash flow (excl. dividends), $m
  2,094
  2,238
  2,394
  2,557
  2,726
  2,901
  3,084
  3,275
  3,473
  3,680
  3,794
  4,019
  4,254
  4,499
  4,756
  5,024
  5,305
  5,598
  5,905
  6,227
  6,564
  6,917
  7,287
  7,674
  8,081
  8,507
  8,954
  9,423
  9,915
  10,431
Retained Cash Flow (-), $m
  -467
  -499
  -519
  -539
  -560
  -583
  -606
  -630
  -656
  -683
  -711
  -741
  -772
  -806
  -841
  -878
  -917
  -958
  -1,002
  -1,048
  -1,096
  -1,147
  -1,201
  -1,257
  -1,317
  -1,380
  -1,446
  -1,515
  -1,588
  -1,665
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
  1,627
  1,739
  1,875
  2,017
  2,165
  2,319
  2,479
  2,645
  2,818
  2,998
  3,083
  3,278
  3,481
  3,694
  3,915
  4,146
  4,388
  4,640
  4,904
  5,179
  5,468
  5,770
  6,086
  6,417
  6,764
  7,127
  7,508
  7,908
  8,327
  8,766
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
  1,522
  1,512
  1,505
  1,484
  1,447
  1,397
  1,335
  1,260
  1,176
  1,084
  955
  859
  762
  666
  573
  486
  404
  330
  265
  208
  160
  121
  89
  64
  45
  30
  20
  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 31.2
Price to Sales 4.4
Price to Book 9.3
Price to Tangible Book
Price to Cash Flow 16.9
Price to Free Cash Flow 35.8
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 0001 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% 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 74.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $466 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%.

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 119.2%.

Life of production assets of 13.1 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 5.1%. 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 287.576 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.

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