Trane Technologies plc (TT)

Auto Controls For Regulating Residential & Comml Environments

Latest Price

$451.98

TTM P/E

34.24

Normalized P/E

44.21

Div Yield

0.90%

Book Value

39.01

P/B Ratio

11.59

Valuation metrics

EPS: $12.98

Book value / share: $34.45

Formula: √(22.5 × EPS × BVPS)

Graham Number

$100.31

78% downside

Norm. op. income: $2.4B (median of 7yr)

Tax rate: 19%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$64.10

86% downside

Base FCF: $2.1B (median of recent 5yr)

Growth: 4%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$115.02

75% downside

EPS: $12.98

Target P/E: 44×

Formula: EPS × P/E

P/E Fair Value

$571.12

+26% upside