TT Relative Valuation
TT'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, TT is overvalued; if below, it's undervalued.
Historical Valuation
Trane Technologies PLC (TT) is now in the Fair zone, suggesting that its current forward PE ratio of 28.17 is considered Fairly compared with the five-year average of 25.62. The fair price of Trane Technologies PLC (TT) is between 388.38 to 492.35 according to relative valuation methord.
Relative Value
Fair Zone
388.38-492.35
Current Price：405.35
Fair
28.17
PE
1Y
3Y
5Y
Trailing
Forward
20.20
EV/EBITDA
Trane Technologies PLC. (TT) has a current EV/EBITDA of 20.20. The 5-year average EV/EBITDA is 17.72. The thresholds are as follows: Strongly Undervalued below 11.60, Undervalued between 11.60 and 14.66, Fairly Valued between 20.78 and 14.66, Overvalued between 20.78 and 23.83, and Strongly Overvalued above 23.83. The current Forward EV/EBITDA of 20.20 falls within the Historic Trend Line -Fairly Valued range.
22.00
EV/EBIT
Trane Technologies PLC. (TT) has a current EV/EBIT of 22.00. The 5-year average EV/EBIT is 19.75. The thresholds are as follows: Strongly Undervalued below 13.31, Undervalued between 13.31 and 16.53, Fairly Valued between 22.97 and 16.53, Overvalued between 22.97 and 26.19, and Strongly Overvalued above 26.19. The current Forward EV/EBIT of 22.00 falls within the Historic Trend Line -Fairly Valued range.
4.05
PS
Trane Technologies PLC. (TT) has a current PS of 4.05. The 5-year average PS is 3.07. The thresholds are as follows: Strongly Undervalued below 1.55, Undervalued between 1.55 and 2.31, Fairly Valued between 3.84 and 2.31, Overvalued between 3.84 and 4.60, and Strongly Overvalued above 4.60. The current Forward PS of 4.05 falls within the Overvalued range.
25.48
P/OCF
Trane Technologies PLC. (TT) has a current P/OCF of 25.48. The 5-year average P/OCF is 22.83. The thresholds are as follows: Strongly Undervalued below 10.48, Undervalued between 10.48 and 16.66, Fairly Valued between 29.01 and 16.66, Overvalued between 29.01 and 35.19, and Strongly Overvalued above 35.19. The current Forward P/OCF of 25.48 falls within the Historic Trend Line -Fairly Valued range.
29.98
P/FCF
Trane Technologies PLC. (TT) has a current P/FCF of 29.98. The 5-year average P/FCF is 25.74. The thresholds are as follows: Strongly Undervalued below 11.88, Undervalued between 11.88 and 18.81, Fairly Valued between 32.67 and 18.81, Overvalued between 32.67 and 39.60, and Strongly Overvalued above 39.60. The current Forward P/FCF of 29.98 falls within the Historic Trend Line -Fairly Valued range.
Trane Technologies PLC (TT) has a current Price-to-Book (P/B) ratio of 10.81. Compared to its 3-year average P/B ratio of 9.60 , the current P/B ratio is approximately 12.55% higher. Relative to its 5-year average P/B ratio of 8.26, the current P/B ratio is about 30.81% higher. Trane Technologies PLC (TT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.22%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.32% , the current FCF yield is about -100.00% lower.
10.81
P/B
Median3y
9.60
Median5y
8.26
2.79
FCF Yield
Median3y
3.22
Median5y
3.32
Competitors Valuation Multiple
The average P/S ratio for TT's competitors is , providing a benchmark for relative valuation. Trane Technologies PLC Corp (TT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.54%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TT increased by 9.75% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 5.44B to 5.74B.
The secondary factor is the Margin Expansion, contributed 3.60%to the performance.
Overall, the performance of TT in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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