Trane Technologies plc

NYSE:TT Stock Report

Market Cap: US$92.9b

Trane Technologies Valuation

Is TT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TT ($411.16) is trading above our estimate of fair value ($198.85)

Significantly Below Fair Value: TT is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TT?

Key metric: As TT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TT. This is calculated by dividing TT's market cap by their current earnings.
What is TT's PE Ratio?
PE Ratio37.2x
EarningsUS$2.50b
Market CapUS$92.94b

Price to Earnings Ratio vs Peers

How does TT's PE Ratio compare to its peers?

The above table shows the PE ratio for TT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.6x
CARR Carrier Global
43.5x18.2%US$66.7b
JCI Johnson Controls International
39.4x16.1%US$55.8b
LII Lennox International
29.6x7.9%US$22.2b
CSL Carlisle Companies
21.9x6.5%US$19.7b
TT Trane Technologies
37x8.7%US$92.9b

Price-To-Earnings vs Peers: TT is expensive based on its Price-To-Earnings Ratio (37x) compared to the peer average (33.6x).

Price to Earnings Ratio vs Industry

How does TT's PE Ratio compare vs other companies in the US Building Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
AUVI.Q Applied UV
n/an/aUS$4.00
No more companies available in this PE range
TT 37.2xIndustry Avg. 21.5xNo. of Companies9PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TT is expensive based on its Price-To-Earnings Ratio (37x) compared to the US Building industry average (21.5x).

Price to Earnings Ratio vs Fair Ratio

What is TT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.2x
Fair PE Ratio27.9x

Price-To-Earnings vs Fair Ratio: TT is expensive based on its Price-To-Earnings Ratio (37x) compared to the estimated Fair Price-To-Earnings Ratio (27.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$411.16
US$402.30
-2.2%
12.3%US$500.00US$223.00n/a21
Nov ’25US$376.15
US$393.96
+4.7%
11.7%US$457.00US$223.00n/a20
Oct ’25US$386.63
US$358.83
-7.2%
11.7%US$425.00US$212.00n/a21
Sep ’25US$361.66
US$350.03
-3.2%
11.0%US$394.00US$212.00n/a20
Aug ’25US$333.33
US$344.19
+3.3%
11.4%US$394.00US$212.00n/a20
Jul ’25US$321.36
US$329.80
+2.6%
11.8%US$380.00US$203.00n/a21
Jun ’25US$327.46
US$324.49
-0.9%
11.2%US$375.00US$203.00n/a20
May ’25US$314.98
US$306.50
-2.7%
15.3%US$366.00US$190.31n/a21
Apr ’25US$296.73
US$272.98
-8.0%
13.3%US$330.00US$182.00n/a21
Mar ’25US$285.98
US$271.46
-5.1%
13.0%US$330.00US$182.00n/a21
Feb ’25US$270.74
US$247.25
-8.7%
12.6%US$289.00US$163.00n/a21
Jan ’25US$243.90
US$232.49
-4.7%
10.6%US$269.00US$163.00n/a21
Dec ’24US$227.53
US$225.82
-0.8%
10.2%US$256.00US$163.00n/a21
Nov ’24US$213.50
US$219.12
+2.6%
10.9%US$256.00US$163.00US$376.1520
Oct ’24US$202.91
US$211.70
+4.3%
12.2%US$256.00US$152.00US$386.6320
Sep ’24US$205.23
US$208.21
+1.5%
11.7%US$247.00US$152.00US$361.6619
Aug ’24US$199.03
US$195.33
-1.9%
12.0%US$247.00US$142.00US$333.3318
Jul ’24US$191.26
US$191.78
+0.3%
12.2%US$245.00US$142.00US$321.3618
Jun ’24US$165.91
US$190.89
+15.1%
12.0%US$245.00US$142.00US$327.4619
May ’24US$187.70
US$189.00
+0.7%
13.9%US$245.00US$140.00US$314.9818
Apr ’24US$183.98
US$190.61
+3.6%
12.9%US$235.00US$140.00US$296.7318
Mar ’24US$185.66
US$188.33
+1.4%
12.5%US$235.00US$140.00US$285.9818
Feb ’24US$178.80
US$174.83
-2.2%
13.0%US$212.00US$126.00US$270.7418
Jan ’24US$168.09
US$169.94
+1.1%
13.1%US$212.00US$126.00US$243.9018
Dec ’23US$178.18
US$169.17
-5.1%
12.3%US$212.00US$126.00US$227.5318
Nov ’23US$159.79
US$160.79
+0.6%
13.7%US$212.00US$116.00US$213.5019

Analyst Forecast: Target price is lower than the current share price.

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