Based on the provided data, I'll analyze whether IR (Ingersoll Rand) is currently overvalued.
Valuation Analysis:
The stock's current valuation metrics show elevated levels with P/E at 47.84, EV/EBITDA at 22.68, and P/S at 5.59 for Q3 2024, indicating premium valuations compared to historical averages.
Technical Analysis:
The stock is currently trading at $91.47, showing a modest gain of +0.57% in regular market trading.
Analyst Consensus:
Recent analyst actions suggest mixed views. While some analysts maintain bullish ratings, there have been several price target reductions:
- Citi lowered target from $119 to $115
- Barclays reduced from $120 to $115
- Wells Fargo cut from $115 to $105
Market Performance:
IR has underperformed the broader market over the past year, rising only 10.8% compared to the S&P 500's 21.6% gain.
Conclusion in 5 Sentences:
Based on elevated valuation metrics significantly above historical averages, IR appears overvalued at current levels. The company's P/E ratio of 47.84 is particularly concerning given the industry context and recent market performance. Recent analyst price target reductions from major firms suggest growing caution about the stock's valuation. The stock's underperformance relative to the broader market despite premium valuations raises additional red flags. The combination of rich multiples, analyst caution, and relative underperformance strongly suggests IR is overvalued at current price levels.