Based on the provided data, here's a comprehensive analysis of TT's valuation:
Valuation Metrics
TT's valuation metrics show increasing trends across multiple measures in 2024:
- P/E ratio increased from 31.72 to 35.63 (Q1-Q3)
- EV/EBITDA rose from 20.98 to 24.23
- P/S ratio climbed from 3.79 to 4.59
- P/B ratio increased from 9.88 to 11.53
Recent Price Movement
Analyst Consensus
Recent analyst actions indicate mixed sentiment:
- JPMorgan maintained Hold with $387 target
- Citigroup maintains Strong Buy with $476 target
- Wells Fargo maintains Sell with $380 target
- RBC Capital raised target to $395, maintaining Hold
Overvaluation Indicators
The stock appears overvalued based on:
- Elevated P/E ratio at 35.63x, significantly above historical levels
- EV/EBITDA at 24.23x suggests premium valuation
- P/B ratio at 11.53x indicates expensive book value pricing
- Declining dividend yield from 1.06% to 0.86% reflects price appreciation outpacing dividend growth
Market Position
The company's upcoming Q4 earnings report on January 30 is expected to show continued growth:
- Projected EPS of $2.53, up 16.6% YoY
- Strong track record of beating estimates
- Consistent margin expansion in Americas region
Based on these factors, TT appears overvalued at current levels, with valuation metrics stretched above historical averages and peer comparisons. While the company shows strong operational execution, the premium valuation suggests limited upside potential.
