A Fresh Look at Ingersoll Rand (IR) Valuation as Investors Weigh Recent Performance Trends

Ingersoll Rand (IR) shares have been active recently, catching attention for their movement over the past month. Investors are weighing recent performance data to gauge where the stock might be headed next.

See our latest analysis for Ingersoll Rand.

Over the past year, Ingersoll Rand’s share price has seen modest movement. Its long-term total shareholder returns remain steady, reflecting solid growth and tempered risk sentiment as the outlook continues to evolve. Recent news may be limited, but investors are still watching for shifts in momentum and value signals.

If you’re interested in discovering companies with a track record of strong growth and insider confidence, broaden your search and explore fast growing stocks with high insider ownership.

With shares trading just below analyst targets and solid growth underneath, the key question becomes whether Ingersoll Rand is undervalued at current levels, or if the market has already priced in its future prospects.

Most Popular Narrative: 6.5% Undervalued

With the current share price at $84.18 and the narrative's fair value at $90, the stage is set for potentially meaningful upside. This valuation reflects expectations around new markets and ongoing transformation, not just current trading levels.

Focus on energy-efficient innovation and digital solutions is boosting pricing power, customer retention, and recurring revenue. This supports enduring growth in a changing regulatory landscape.
Geographic and product diversification, driven by targeted M&A and expanded aftermarket services, strengthens resilience against market volatility and reduces regional dependency.

Read the complete narrative.

Want to find the formula fueling this double-digit target? The answer lies in bold growth moves, rising margins, and a profit outlook that rewrites the script. Discover what ambitious financial projections are at the core of this compelling narrative.

Result: Fair Value of $90 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory pressures and challenges integrating recent acquisitions could weigh on margins and potentially limit near-term upside for Ingersoll Rand.

Find out about the key risks to this Ingersoll Rand narrative.

Another View: Looking at Market Ratios

Despite the optimism built into fair value estimates, Ingersoll Rand is currently trading at a price-to-earnings ratio of 64x. This is much higher than both its industry average of 24.1x and its peer group at 25.5x. It is also well above its fair ratio of 37.1x. Such a gap suggests the stock carries significant valuation risk if market sentiment shifts, even if long-term drivers appear strong. Will these elevated multiples hold up as fundamentals play out?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Ingersoll Rand Narrative

Prefer to go hands-on with the data or see things from a different angle? Craft your own narrative and analysis in just a few minutes by clicking Do it your way.

A great starting point for your Ingersoll Rand research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Smart investors know that the best opportunities often hide in plain sight. Don’t miss out on tomorrow’s winners by expanding your search with these expert-picked themes:

• Uncover the potential for high returns by targeting these 3563 penny stocks with strong financials that combine strong fundamentals with promising growth stories overlooked by many.
• Boost your income by selecting stable companies offering generous yields. Start with these 19 dividend stocks with yields > 3% to put your portfolio on the front foot.
• Position yourself at the forefront of innovation when you track these 31 healthcare AI stocks fueling breakthroughs in medicine and patient care using advanced artificial intelligence.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com