Air Products and Chemicals, Inc. (APD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-156.4%

-$179.32

vs $318.08 price

Levered DCF

-$232.64

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

2.89

Grey zone

Rating

D+

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-154.08×	17.3×	27.49×	23.02×	27.96×	34.68×	27.77×	24.81×
P/B	4.04×	3.89×	4.4×	3.93×	4.19×	5.45×	4.42×	3.42×
P/S	5.05×	5.47×	5×	4.07×	5.5×	7.44×	5.48×	4.16×
EV / EBITDA	57.8×	12.06×	16.39×	13.57×	15.24×	18.54×	14.23×	12.25×
Gross margin	31.4%	32.5%	29.9%	26.5%	30.4%	33.9%	33.0%	30.7%
Operating margin	-7.3%	36.9%	19.8%	18.4%	22.1%	25.3%	24.0%	22.0%
Net margin	-3.3%	31.6%	18.3%	17.8%	20.3%	21.3%	19.7%	16.8%
Current ratio	1.38×	1.52×	1.33×	1.81×	2.99×	3.59×	2.54×	2.17×
Debt / equity	1.23×	0.88×	0.77×	0.63×	0.61×	0.69×	0.3×	0.35×
Interest coverage	-4.1×	20.41×	14.05×	18.27×	16.09×	20.47×	15.65×	15.06×
Dividend yield	2.6%	2.4%	2.4%	2.7%	2.2%	1.7%	2.0%	2.4%
Payout ratio	-401.5%	40.9%	65.1%	61.3%	59.9%	58.5%	56.5%	59.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-2.6%	22.5%	16.1%	17.2%	15.5%	15.6%	15.9%	13.8%
Return on invested capital	-1.8%	9.9%	6.9%	7.9%	7.6%	7.7%	9.8%	8.4%
Return on assets	-1.0%	9.7%	7.2%	8.3%	7.8%	7.5%	9.3%	7.8%
Free cash flow yield	-6.2%	-4.8%	-2.3%	0.6%	1.5%	1.1%	2.0%	2.6%
Earnings yield	-0.6%	5.8%	3.7%	4.4%	3.7%	2.9%	3.6%	4.0%
Enterprise value	$77.3B	$78.3B	$72.4B	$57.3B	$60.5B	$68.9B	$50B	$38.2B
Net debt / EBITDA	12.37×	1.85×	2.13×	1.33×	0.94×	0.82×	0.31×	0.33×
Cash conversion cycle (days)	47	35	39	35	44	50	49	45