IR Valuation

Ingersoll Rand Inc

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81.530

+2.53(3.203%)1D

Overview
Forecast
Valuation
Earnings

IR Relative Valuation

IR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, IR is overvalued; if below, it's undervalued.

Historical Valuation

Ingersoll Rand Inc (IR) is now in the Undervalued zone, suggesting that its current forward PE ratio of 22.01 is considered Undervalued compared with the five-year average of 23.78. The fair price of Ingersoll Rand Inc (IR) is between 94.07 to 111.41 according to relative valuation methord. Compared to the current price of 79.00 USD , Ingersoll Rand Inc is Undervalued By 16.02%.

Relative Value

Fair Zone

94.07-111.41

Current Price：79.00

16.02%

Undervalued

22.71

Trailing

Forward

16.14

EV/EBITDA

Ingersoll Rand Inc. (IR) has a current EV/EBITDA of 16.14. The 5-year average EV/EBITDA is 16.86. The thresholds are as follows: Strongly Undervalued below 12.75, Undervalued between 12.75 and 14.81, Fairly Valued between 18.92 and 14.81, Overvalued between 18.92 and 20.97, and Strongly Overvalued above 20.97. The current Forward EV/EBITDA of 16.14 falls within the Historic Trend Line -Fairly Valued range.

21.89

EV/EBIT

Ingersoll Rand Inc. (IR) has a current EV/EBIT of 21.89. The 5-year average EV/EBIT is 23.79. The thresholds are as follows: Strongly Undervalued below 16.87, Undervalued between 16.87 and 20.33, Fairly Valued between 27.24 and 20.33, Overvalued between 27.24 and 30.70, and Strongly Overvalued above 30.70. The current Forward EV/EBIT of 21.89 falls within the Historic Trend Line -Fairly Valued range.

4.01

Ingersoll Rand Inc. (IR) has a current PS of 4.01. The 5-year average PS is 3.99. The thresholds are as follows: Strongly Undervalued below 2.67, Undervalued between 2.67 and 3.33, Fairly Valued between 4.65 and 3.33, Overvalued between 4.65 and 5.32, and Strongly Overvalued above 5.32. The current Forward PS of 4.01 falls within the Historic Trend Line -Fairly Valued range.

20.86

P/OCF

Ingersoll Rand Inc. (IR) has a current P/OCF of 20.86. The 5-year average P/OCF is 21.04. The thresholds are as follows: Strongly Undervalued below 14.90, Undervalued between 14.90 and 17.97, Fairly Valued between 24.11 and 17.97, Overvalued between 24.11 and 27.18, and Strongly Overvalued above 27.18. The current Forward P/OCF of 20.86 falls within the Historic Trend Line -Fairly Valued range.

22.67

P/FCF

Ingersoll Rand Inc. (IR) has a current P/FCF of 22.67. The 5-year average P/FCF is 23.35. The thresholds are as follows: Strongly Undervalued below 16.15, Undervalued between 16.15 and 19.75, Fairly Valued between 26.95 and 19.75, Overvalued between 26.95 and 30.56, and Strongly Overvalued above 30.56. The current Forward P/FCF of 22.67 falls within the Historic Trend Line -Fairly Valued range.

Ingersoll Rand Inc (IR) has a current Price-to-Book (P/B) ratio of 3.11. Compared to its 3-year average P/B ratio of 3.14 , the current P/B ratio is approximately -0.98% higher. Relative to its 5-year average P/B ratio of 2.78, the current P/B ratio is about 11.87% higher. Ingersoll Rand Inc (IR) has a Forward Free Cash Flow (FCF) yield of approximately 4.20%. Compared to its 3-year average FCF yield of 3.57%, the current FCF yield is approximately 17.77% lower. Relative to its 5-year average FCF yield of 3.50% , the current FCF yield is about 20.24% lower.

3.21

P/B

Median3y

3.14

Median5y

2.78

4.13

FCF Yield

Median3y

3.57

Median5y

3.50

Performance Decomposition

Market capitalization of IR decreased by 19.52% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 26.93 to 63.09.

The secondary factor is the Revenue Growth, contributed 4.58%to the performance.

Overall, the performance of IR in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.58%

1.81B → 1.89B

Revenue Growth

-158.37%

10.33 → -6.03

Margin Expansion

134.27%

26.93 → 63.09

P/E Change

-19.52%