As of June 5, 2025, L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA's estimated intrinsic value ranges from $86.29 to $153.49 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $102.69 | -44.3% |
| Discounted Cash Flow (5Y) | $103.58 | -43.8% |
| Dividend Discount Model (Multi-Stage) | $86.29 | -53.2% |
| Dividend Discount Model (Stable) | $96.94 | -47.4% |
| Earnings Power Value | $153.49 | -16.7% |
Is L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA (AI.PA) undervalued or overvalued?
With the current market price at $184.30, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.79 | 0.86 |
| Cost of equity | 7.6% | 9.8% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 23.8% | 24.6% |
| Debt/Equity ratio | 0.12 | 0.12 |
| After-tax WACC | 7.1% | 9.2% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $104 | $70,395M | 77.0% |
| 10-Year Growth | $103 | $69,878M | 59.3% |
| 5-Year EBITDA | $125 | $82,985M | 80.5% |
| 10-Year EBITDA | $120 | $79,915M | 64.4% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $7,956M |
| Discount Rate (WACC) | 9.2% - 7.1% |
| Enterprise Value | $86,833M - $111,691M |
| Net Debt | $10,478M |
| Equity Value | $76,355M - $101,212M |
| Outstanding Shares | 578M |
| Fair Value | $132 - $175 |
| Selected Fair Value | $153.49 |
| Metric | Value |
|---|---|
| Market Capitalization | $106606M |
| Enterprise Value | $117085M |
| Trailing P/E | 32.25 |
| Forward P/E | 29.50 |
| Trailing EV/EBITDA | 11.00 |
| Current Dividend Yield | 162.84% |
| Dividend Growth Rate (5Y) | 7.06% |
| Debt-to-Equity Ratio | 0.12 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $30.81 |
| Discounted Cash Flow (5Y) | 25% | $25.90 |
| Dividend Discount Model (Multi-Stage) | 20% | $17.26 |
| Dividend Discount Model (Stable) | 15% | $14.54 |
| Earnings Power Value | 10% | $15.35 |
| Weighted Average | 100% | $103.85 |
Based on our comprehensive valuation analysis, L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA's weighted average intrinsic value is $103.85, which is approximately 43.7% below the current market price of $184.30.
Key investment considerations:
Given these factors, we believe L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.