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- Statement of Comprehensive Income
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
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).
- Net earnings attributable to Trane Technologies plc
- The net earnings show some variability over the period. Starting at approximately 1,337,600 thousand US dollars in 2018, there was a moderate increase to about 1,410,900 thousand US dollars in 2019. This was followed by a significant decline in 2020, dropping to 854,900 thousand US dollars. Subsequently, the earnings rebounded strongly in 2021, climbing back to 1,423,400 thousand US dollars, and further increased in 2022 to reach the highest value in the series at 1,756,500 thousand US dollars. This indicates a recovery and growth trend after the dip experienced in 2020.
- Earnings before tax (EBT)
- The earnings before tax mirrored the net earnings trend with some fluctuations. Beginning at 1,660,300 thousand US dollars in 2018, it rose to 1,741,600 thousand US dollars in 2019. A notable drop to 1,288,200 thousand US dollars occurred in 2020. Thereafter, EBT increased substantially in 2021 to 1,790,700 thousand US dollars and continued to rise to 2,172,100 thousand US dollars in 2022, marking the highest point in the data series. The progression suggests operational recovery and enhanced profitability before tax in the most recent years.
- Earnings before interest and tax (EBIT)
- The EBIT figures exhibit a pattern of initial growth, a decline, and then strong growth. The value increased from 1,881,000 thousand US dollars in 2018 to 1,984,600 thousand US dollars in 2019 before decreasing to 1,536,900 thousand US dollars in 2020. Following this, there was a marked recovery to 2,024,400 thousand US dollars in 2021, which was further elevated to 2,395,600 thousand US dollars in 2022. These movements highlight the operational earnings improvements after the setback in 2020, with consistent growth in the last two years.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- The EBITDA data follows a similar trajectory as other earnings metrics. From 2,242,500 thousand US dollars in 2018, it edged up to 2,382,000 thousand US dollars in 2019. A decline was observed in 2020, with EBITDA falling to 1,831,200 thousand US dollars. Recovery trends continued into 2021 with a rise to 2,323,800 thousand US dollars and an additional growth to 2,719,200 thousand US dollars in 2022. This indicates improved cash flow generation capabilities in recent years after the decline during 2020.
- Summary of trends
- Overall, each major earnings metric experienced a notable downturn in 2020, which may correspond with exceptional circumstances impacting performance during that year. Afterward, all measures demonstrated substantial recovery and continued growth through 2021 and 2022, reaching the highest levels recorded within the timeframe. This pattern suggests resilience and effective management in restoring profitability post-2020, with positive momentum sustained into 2022.
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in thousands) | |
Enterprise value (EV) | |
Earnings before interest, tax, depreciation and amortization (EBITDA) | |
Valuation Ratio | |
EV/EBITDA | |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Boeing Co. | |
Caterpillar Inc. | |
Eaton Corp. plc | |
GE Aerospace | |
Honeywell International Inc. | |
Lockheed Martin Corp. | |
RTX Corp. | |
EV/EBITDA, Sector | |
Capital Goods | |
EV/EBITDA, Industry | |
Industrials |
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.
Enterprise Value to EBITDA Ratio, Historical
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 | ||||||
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
Valuation Ratio | ||||||
EV/EBITDA3 | ||||||
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
EV/EBITDA, Sector | ||||||
Capital Goods | ||||||
EV/EBITDA, Industry | ||||||
Industrials |
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).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited an overall increasing trend from 2018 to 2022. Starting at approximately $28.35 billion in 2018, it rose significantly to about $38.88 billion in 2019. Although there was a decline in 2020 to approximately $36.74 billion, the value increased again thereafter, reaching around $39.36 billion in 2021 and further climbing to about $45.59 billion in 2022. This reflects a strong growth trajectory with a minor dip during the 2020 period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA values showed some volatility over the five-year period. The figure started at $2.24 billion in 2018 and increased slightly to roughly $2.38 billion in 2019. In 2020, a significant decline was observed, with EBITDA dropping to around $1.83 billion. The subsequent years saw a recovery, with EBITDA rising to approximately $2.32 billion in 2021 and continuing the upward trend to about $2.72 billion in 2022. This indicates resilience and a rebound in operational profitability after the downturn experienced in 2020.
- EV/EBITDA Ratio
- The EV/EBITDA ratio demonstrated variability consistent with the changes in enterprise value and EBITDA. The ratio increased from 12.64 in 2018 to a peak of 20.07 in 2020, reflecting the simultaneous dip in EBITDA and relatively high enterprise value during that year. Following this peak, the ratio declined to 16.94 in 2021 and remained relatively stable at 16.76 in 2022. The elevated ratio during 2020 suggests a period where market valuation was high relative to earnings, possibly indicating market concerns or operational challenges during that time, whereas the subsequent stabilization points to improved balance between value and earnings.