Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Trane Technologies plc, EBITDA calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings attributable to Trane Technologies plc	1,756,500)	1,423,400)	854,900)	1,410,900)	1,337,600)
Add: Net income attributable to noncontrolling interest	18,200)	13,200)	15,100)	17,600)	19,900)
Less: Discontinued operations, net of tax	(21,500)	(20,600)	(121,400)	40,600)	(21,500)
Add: Income tax expense	375,900)	333,500)	296,800)	353,700)	281,300)
Earnings before tax (EBT)	2,172,100)	1,790,700)	1,288,200)	1,741,600)	1,660,300)
Add: Interest expense	223,500)	233,700)	248,700)	243,000)	220,700)
Earnings before interest and tax (EBIT)	2,395,600)	2,024,400)	1,536,900)	1,984,600)	1,881,000)
Add: Depreciation and amortization	323,600)	299,400)	294,300)	397,400)	361,500)
Earnings before interest, tax, depreciation and amortization (EBITDA)	2,719,200)	2,323,800)	1,831,200)	2,382,000)	2,242,500)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Trane Technologies plc EBITDA increased from 2020 to 2021 and from 2021 to 2022.

Trane Technologies plc, current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	44,166,336)
Earnings before interest, tax, depreciation and amortization (EBITDA)	2,719,200)
Valuation Ratio
EV/EBITDA	16.24
Benchmarks
EV/EBITDA, Competitors¹
Boeing Co.	54.71
Caterpillar Inc.	13.64
Eaton Corp. plc	30.41
GE Aerospace	14.35
Honeywell International Inc.	17.62
Lockheed Martin Corp.	13.67
RTX Corp.	20.35
EV/EBITDA, Sector
Capital Goods	23.76
EV/EBITDA, Industry
Industrials	20.73

Based on: 10-K (reporting date: 2022-12-31).

¹ Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Trane Technologies plc, historical EV/EBITDA calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	45,585,145)	39,358,574)	36,743,046)	38,875,598)	28,354,995)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	2,719,200)	2,323,800)	1,831,200)	2,382,000)	2,242,500)
Valuation Ratio
EV/EBITDA³	16.76	16.94	20.07	16.32	12.64
Benchmarks
EV/EBITDA, Competitors⁴
Boeing Co.	—	—	—	284.02	—
Caterpillar Inc.	13.86	12.43	19.87	9.66	—
Eaton Corp. plc	19.18	17.06	22.11	12.86	—
GE Aerospace	14.82	95.57	9.35	13.66	—
Honeywell International Inc.	18.01	15.57	20.21	14.95	—
Lockheed Martin Corp.	14.98	11.97	9.97	14.86	—
RTX Corp.	14.92	15.48	41.71	12.60	—
EV/EBITDA, Sector
Capital Goods	19.01	19.87	25.02	16.22	—
EV/EBITDA, Industry
Industrials	17.07	16.21	26.87	17.56	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ See details »

² See details »

³ 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 45,585,145 ÷ 2,719,200 = 16.76

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	Trane Technologies plc EV/EBITDA ratio decreased from 2020 to 2021 and from 2021 to 2022.

Trane Technologies plc (NYSE:TT)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical