Ingersoll Rand (IR): Exploring Valuation After Recent Share Price Recovery

Ingersoll Rand (IR) stock drew interest after recent trading data revealed a nearly 1.5% gain for the day. This comes after a period of subdued returns over the past month and quarter.

See our latest analysis for Ingersoll Rand.

After a strong surge over the past three years, with a total shareholder return of nearly 65%, Ingersoll Rand’s momentum has slowed. Recently, the share price has retreated to $77.24. Recent short-term declines may reflect shifting sentiment or a reassessment of growth expectations, even though the long-term track record remains notable.

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With shares trading below analyst targets and solid long-term gains still on record, investors may be questioning whether Ingersoll Rand is now underappreciated by the market or if any upside is already factored into the current price.

Most Popular Narrative: 14.2% Undervalued

With the narrative’s fair value estimate set at $90, Ingersoll Rand’s last close of $77.24 suggests meaningful upside if these projections hold true. The valuation highlights how optimism around future growth, margin expansion, and strategy could be driving a higher target.

The company continues building recurring, high-margin revenue streams through expansion of aftermarket services and value-added lifecycle solutions (aftermarket revenue grew to 37% of total), which increases the stability of net margins and supports long-term earnings resilience even if new equipment demand remains variable.

Read the complete narrative.

Want to know the engine behind this ambitious valuation? It hinges on a bold profit growth trajectory and future margin gains that could rival industry standouts. The narrative stakes everything on key moves. Will earnings momentum and strategic choices really reshape Ingersoll Rand’s long-term worth? Unpack the specifics and see the revealing assumptions driving this target.

Result: Fair Value of $90 (UNDERVALUED)

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

However, aggressive acquisitions and prolonged global uncertainty could pressure margins and dampen growth. These factors may challenge the optimistic outlook surrounding Ingersoll Rand’s future performance.

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

Another View: Multiples Tell a Different Story

While the earlier valuation suggests Ingersoll Rand is undervalued, the market's price-to-earnings ratio for the company stands at 58.7x. This is much higher than both the industry average (23.5x) and the peer group (26x), and even above the fair ratio of 36.6x. Such a premium means investors are accepting more valuation risk compared to sector norms. Could this eventually weigh on future returns, or is the premium justified by growth ahead?

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

Build Your Own Ingersoll Rand Narrative

If you prefer to verify the numbers yourself or want a fresh angle, you can easily build your own narrative in just a few minutes with 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.

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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.

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