Stock Analysis on Net

Trane Technologies plc (NYSE:TT)

This company has been moved to the archive! The financial data has not been updated since May 3, 2023.

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

Trane Technologies plc, current price multiples

Microsoft Excel
Trane Technologies plc Boeing Co. Caterpillar Inc. Eaton Corp. plc GE Aerospace Honeywell International Inc. Lockheed Martin Corp. RTX Corp. Capital Goods Industrials
Selected Financial Data
Current share price (P) $177.74
No. shares of common stock outstanding 228,051,842
Growth rate (g) 12.27%
 
Earnings per share (EPS) $7.70
Next year expected EPS $8.65
Operating profit per share $10.61
Sales per share $70.12
Book value per share (BVPS) $26.70
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 23.08 17.82 44.27 20.97 26.05 18.32 49.64 51.95 45.46
Price to next year expected earnings 20.55 14.55 41.55 20.63 22.46 11.60 48.64 52.52 46.70
Price-earnings-growth (PEG) 1.88 0.79 6.77 12.76 1.63 0.32 24.18
Price to operating profit (P/OP) 16.76 14.21 36.67 35.14 20.81 14.90 44.54 32.55 25.46
Price to sales (P/S) 2.53 1.16 2.88 6.14 2.98 4.02 1.88 2.30 2.70 2.38
Price to book value (P/BV) 6.66 9.45 7.48 7.04 9.30 18.54 2.65 6.86 7.00

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Trane Technologies plc, historical price multiples

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Price to earnings (P/E) 23.88 25.75 40.64 24.50 18.78
Price to operating profit (P/OP) 17.34 18.12 22.67 17.13 13.10
Price to sales (P/S) 2.62 2.59 2.79 2.08 1.60
Price to book value (P/BV) 6.89 5.86 5.42 4.76 3.58

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Trane Technologies plc P/E ratio decreased from 2020 to 2021 and from 2021 to 2022.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Trane Technologies plc P/OP ratio decreased from 2020 to 2021 and from 2021 to 2022.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Trane Technologies plc P/S ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Trane Technologies plc P/BV ratio increased from 2020 to 2021 and from 2021 to 2022.

Price to Earnings (P/E)

Trane Technologies plc, historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 229,074,725 233,538,091 238,428,700 238,401,033 242,168,631
Selected Financial Data (US$)
Net earnings attributable to Trane Technologies plc (in thousands) 1,756,500 1,423,400 854,900 1,410,900 1,337,600
Earnings per share (EPS)2 7.67 6.09 3.59 5.92 5.52
Share price1, 3 183.14 156.97 145.71 144.97 103.75
Valuation Ratio
P/E ratio4 23.88 25.75 40.64 24.50 18.78
Benchmarks
P/E Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 19.15 16.82 36.80 12.36
Eaton Corp. plc 27.93 27.77 37.46 18.06
GE Aerospace 19.67
Honeywell International Inc. 26.97 23.14 29.63 20.97
Lockheed Martin Corp. 20.48 16.70 13.44 19.87
RTX Corp. 27.59 36.79 24.41
P/E Ratio, Sector
Capital Goods 40.21 57.31 123.55 39.03
P/E Ratio, Industry
Industrials 36.38 33.32 161.96 49.05

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 Data adjusted for splits and stock dividends.

2 2022 Calculation
EPS = Net earnings attributable to Trane Technologies plc ÷ No. shares of common stock outstanding
= 1,756,500,000 ÷ 229,074,725 = 7.67

3 Closing price as at the filing date of Trane Technologies plc Annual Report.

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 183.14 ÷ 7.67 = 23.88

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Trane Technologies plc P/E ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Operating Profit (P/OP)

Trane Technologies plc, historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 229,074,725 233,538,091 238,428,700 238,401,033 242,168,631
Selected Financial Data (US$)
Operating income (in thousands) 2,418,900 2,023,300 1,532,800 2,017,600 1,917,400
Operating profit per share2 10.56 8.66 6.43 8.46 7.92
Share price1, 3 183.14 156.97 145.71 144.97 103.75
Valuation Ratio
P/OP ratio4 17.34 18.12 22.67 17.13 13.10
Benchmarks
P/OP Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 16.25 15.87 24.23 9.08
Eaton Corp. plc 22.78 19.33 25.83 13.95
GE Aerospace 19.88 17.46 25.64 9.22
Honeywell International Inc. 20.84 20.68 24.86 18.81
Lockheed Martin Corp. 14.06 11.56 10.63 14.49
RTX Corp. 26.48 28.68 15.07
P/OP Ratio, Sector
Capital Goods 25.20 22.96 70.31 17.55
P/OP Ratio, Industry
Industrials 20.37 21.72 48.99 19.39

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 Data adjusted for splits and stock dividends.

2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,418,900,000 ÷ 229,074,725 = 10.56

3 Closing price as at the filing date of Trane Technologies plc Annual Report.

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 183.14 ÷ 10.56 = 17.34

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Trane Technologies plc P/OP ratio decreased from 2020 to 2021 and from 2021 to 2022.

Price to Sales (P/S)

Trane Technologies plc, historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 229,074,725 233,538,091 238,428,700 238,401,033 242,168,631
Selected Financial Data (US$)
Net revenues (in thousands) 15,991,700 14,136,400 12,454,700 16,598,900 15,668,200
Sales per share2 69.81 60.53 52.24 69.63 64.70
Share price1, 3 183.14 156.97 145.71 144.97 103.75
Valuation Ratio
P/S ratio4 2.62 2.59 2.79 2.08 1.60
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 1.90 1.87 1.96 2.34
Caterpillar Inc. 2.27 2.26 2.83 1.48
Eaton Corp. plc 3.31 3.03 2.96 1.87
GE Aerospace 1.20 1.50 1.41 1.18
Honeywell International Inc. 3.78 3.73 4.34 3.51
Lockheed Martin Corp. 1.78 1.57 1.40 2.07
RTX Corp. 2.14 2.21 1.95 1.75
P/S Ratio, Sector
Capital Goods 2.09 2.09 2.11 1.92
P/S Ratio, Industry
Industrials 1.90 2.13 2.17 1.88

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 Data adjusted for splits and stock dividends.

2 2022 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 15,991,700,000 ÷ 229,074,725 = 69.81

3 Closing price as at the filing date of Trane Technologies plc Annual Report.

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 183.14 ÷ 69.81 = 2.62

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Trane Technologies plc P/S ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Price to Book Value (P/BV)

Trane Technologies plc, historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 229,074,725 233,538,091 238,428,700 238,401,033 242,168,631
Selected Financial Data (US$)
Total Trane Technologies plc shareholders’ equity (in thousands) 6,088,600 6,255,900 6,407,700 7,267,600 7,022,700
Book value per share (BVPS)2 26.58 26.79 26.87 30.48 29.00
Share price1, 3 183.14 156.97 145.71 144.97 103.75
Valuation Ratio
P/BV ratio4 6.89 5.86 5.42 4.76 3.58
Benchmarks
P/BV Ratio, Competitors5
Boeing Co.
Caterpillar Inc. 8.09 6.62 7.20 5.16
Eaton Corp. plc 4.04 3.63 3.54 2.48
GE Aerospace 2.43 2.64 2.89 3.66
Honeywell International Inc. 8.02 6.91 8.07 6.97
Lockheed Martin Corp. 12.67 9.62 15.27 39.60
RTX Corp. 1.97 1.95 1.53 3.24
P/BV Ratio, Sector
Capital Goods 5.31 4.77 5.05 6.91
P/BV Ratio, Industry
Industrials 5.60 5.49 5.98 6.61

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 Data adjusted for splits and stock dividends.

2 2022 Calculation
BVPS = Total Trane Technologies plc shareholders’ equity ÷ No. shares of common stock outstanding
= 6,088,600,000 ÷ 229,074,725 = 26.58

3 Closing price as at the filing date of Trane Technologies plc Annual Report.

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 183.14 ÷ 26.58 = 6.89

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Trane Technologies plc P/BV ratio increased from 2020 to 2021 and from 2021 to 2022.