Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
Trane Technologies plc, historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio shows an overall upward trend from early 2019, starting around 18.78 and peaking at 40.64 in late 2020. Following this peak, the ratio gradually declined to approximately 22.48 by the first quarter of 2023. This pattern indicates a period of rising market valuation relative to earnings, reaching a high in 2020, followed by a normalization phase with valuations settling at moderately elevated levels compared to the 2019 baseline.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio mirrors a similar trajectory to the P/E ratio, beginning near 13.1 in early 2019 and increasing steadily to reach a high of 24.68 by the first quarter of 2021. After this peak, the ratio experienced a decline to around 16.3 in early 2023. This reflects increasing investor expectations for operating profit growth until 2021, followed by a re-rating in latter periods that suggests more cautious market sentiment.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio exhibits a consistent upward trend from 1.6 in early 2019 to a peak of 3.52 in mid-2021. Subsequently, it decreased somewhat but remained elevated relative to earlier years, settling near 2.49 by the first quarter of 2023. This trend indicates improving sales valuation multiples over the period, with investor willingness to pay a higher price per sales unit increasing notably until mid-2021, followed by a moderate moderation.
- Price to Book Value (P/BV) Ratio
- From around 3.58 in 2018, the P/BV ratio rose steadily to a peak of 7.37 in mid-2021, indicating sustained strong market valuation relative to book value. Thereafter, the ratio decreased modestly but remained elevated at 6.72 by early 2023, indicating that the market continues to value the company's equity at a premium compared with its book value despite some retraction from peak levels.
- Overall Observations
- Across all valuation ratios, there is a clear pattern of rising multiples from 2019 through 2021, suggesting increasing investor confidence or market optimism during this period. The peaks generally occurred in 2020 or mid-2021. Following these peaks, all ratios trended downward, indicating a period of valuation multiple contraction or market adjustment through to early 2023. Despite this contraction, the multiples remain elevated relative to early 2019 levels, signaling continued positive market sentiment or growth expectations relative to historical benchmarks.
Price to Earnings (P/E)
Trane Technologies plc, historical P/E calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 228,051,842 | 229,074,725 | 230,307,296 | 231,717,363 | 233,860,393 | 233,538,091 | 237,540,178 | 237,608,703 | 239,147,507 | 238,428,700 | 240,124,921 | 239,354,158 | 239,207,928 | 238,401,033 | 239,596,850 | 241,576,691 | 241,158,226 | 242,168,631 | 245,656,287 | 245,309,566 | 247,965,196 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Net earnings (loss) attributable to Trane Technologies plc (in thousands) | 307,100) | 439,100) | 547,900) | 509,300) | 260,200) | 317,800) | 405,700) | 464,700) | 235,200) | 244,700) | 400,600) | 238,800) | (29,200) | 296,100) | 458,800) | 456,100) | 199,900) | 254,000) | 515,100) | 448,100) | 120,400) | |||||||
| Earnings per share (EPS)2 | 7.91 | 7.67 | 7.10 | 6.44 | 6.19 | 6.09 | 5.68 | 5.66 | 4.68 | 3.59 | 3.77 | 4.03 | 4.94 | 5.92 | 5.71 | 5.90 | 5.88 | 5.52 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 177.74 | 183.14 | 160.81 | 150.91 | 141.21 | 156.97 | 178.33 | 200.28 | 178.72 | 145.71 | 127.84 | 110.47 | 82.16 | 144.97 | 127.87 | 118.00 | 122.05 | 103.75 | 92.57 | 96.12 | 85.16 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/E ratio4 | 22.48 | 23.88 | 22.65 | 23.42 | 22.80 | 25.75 | 31.37 | 35.38 | 38.18 | 40.64 | 33.87 | 27.41 | 16.63 | 24.50 | 22.38 | 20.00 | 20.77 | 18.78 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 15.65 | 19.15 | 15.15 | 14.29 | 18.28 | 16.82 | 21.38 | 25.50 | 37.92 | 36.80 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 26.89 | 27.93 | 26.32 | 25.21 | 26.37 | 27.77 | 33.08 | 34.43 | 40.32 | 37.46 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | 12.78 | — | — | — | — | — | — | — | — | 19.67 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 25.30 | 26.97 | 24.58 | 25.26 | 25.10 | 23.14 | 27.35 | 31.83 | 33.71 | 29.63 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 22.32 | 20.48 | 19.28 | 22.00 | 19.45 | 16.70 | 15.11 | 14.27 | 15.48 | 13.44 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 26.67 | 27.59 | 29.12 | 29.83 | 35.16 | 36.79 | 40.28 | 60.91 | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
EPS
= (Net earnings (loss) attributable to Trane Technologies plcQ1 2023
+ Net earnings (loss) attributable to Trane Technologies plcQ4 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ3 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ2 2022)
÷ No. shares of common stock outstanding
= (307,100,000 + 439,100,000 + 547,900,000 + 509,300,000)
÷ 228,051,842 = 7.91
3 Closing price as at the filing date of Trane Technologies plc Quarterly or Annual Report.
4 Q1 2023 Calculation
P/E ratio = Share price ÷ EPS
= 177.74 ÷ 7.91 = 22.48
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited considerable fluctuations over the observed periods. Initially, it rose steadily from $85.16 in March 2018 to a peak of $144.97 by December 2019. This was followed by a sharp decline to $82.16 in March 2020, coinciding with the onset of the global market disruptions. Subsequently, the price rebounded strongly, reaching an all-time high of $200.28 in June 2021. However, from that peak, the share price experienced a gradual downward correction, declining to $156.97 by December 2021 and fluctuating modestly thereafter, ending at $177.74 in March 2023.
- Earnings Per Share (EPS) Developments
- EPS data is available starting from March 2019, beginning at $5.52 and showing a slight upward trend through 2019, peaking at $5.92 in March 2020. Thereafter, EPS fell to a low of $3.59 by December 2020, reflecting a period of reduced profitability. From 2021 onward, EPS steadily improved, rising from $4.68 in March 2021 to $7.91 in March 2023, indicating a recovery and growth in earnings capacity over recent quarters.
- Price-to-Earnings (P/E) Ratio Overview
- The P/E ratio generally increased from 18.78 in March 2019 to a high of 40.64 in December 2020, suggesting growing investor expectations or possibly a lagging share price relative to earnings at that time. Following this peak, the P/E ratio decreased steadily to 22.48 by March 2023, indicating a normalization as earnings rose and share price gains moderated. The ratio’s volatility in this period reflects changing market sentiment and valuation adjustments in relation to earnings performance.
- Overall Financial Insights
- The data indicates that after an initial growth phase up to late 2019, the company faced significant volatility with impacts likely related to broader economic conditions in early 2020. The recovery phase is marked by a strong increase in both earnings and share price, albeit with some correction in market valuation multiples. The consistent rise in EPS from 2021 onward highlights improving operational performance, while the contraction in P/E ratio suggests valuations have stabilized or become more aligned with earnings fundamentals over the most recent quarters.
Price to Operating Profit (P/OP)
Trane Technologies plc, historical P/OP calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 228,051,842 | 229,074,725 | 230,307,296 | 231,717,363 | 233,860,393 | 233,538,091 | 237,540,178 | 237,608,703 | 239,147,507 | 238,428,700 | 240,124,921 | 239,354,158 | 239,207,928 | 238,401,033 | 239,596,850 | 241,576,691 | 241,158,226 | 242,168,631 | 245,656,287 | 245,309,566 | 247,965,196 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Operating income (in thousands) | 456,800) | 580,600) | 739,500) | 710,600) | 388,200) | 435,700) | 583,400) | 651,000) | 353,200) | 388,000) | 566,900) | 423,500) | 154,400) | 425,400) | 623,200) | 650,500) | 318,500) | 446,700) | 587,000) | 640,300) | 243,400) | |||||||
| Operating profit per share2 | 10.91 | 10.56 | 9.87 | 9.14 | 8.80 | 8.66 | 8.32 | 8.25 | 7.24 | 6.43 | 6.54 | 6.80 | 7.75 | 8.46 | 8.51 | 8.29 | 8.26 | 7.92 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 177.74 | 183.14 | 160.81 | 150.91 | 141.21 | 156.97 | 178.33 | 200.28 | 178.72 | 145.71 | 127.84 | 110.47 | 82.16 | 144.97 | 127.87 | 118.00 | 122.05 | 103.75 | 92.57 | 96.12 | 85.16 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/OP ratio4 | 16.30 | 17.34 | 16.29 | 16.51 | 16.04 | 18.12 | 21.44 | 24.29 | 24.68 | 22.67 | 19.55 | 16.26 | 10.60 | 17.13 | 15.03 | 14.23 | 14.77 | 13.10 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 12.67 | 16.25 | 14.25 | 13.65 | 17.16 | 15.87 | 16.57 | 18.76 | 26.25 | 24.23 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 21.74 | 22.78 | 21.52 | 18.06 | 18.52 | 19.33 | 22.62 | 27.06 | 30.03 | 25.83 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | 20.39 | 19.88 | 15.70 | 13.51 | 17.08 | 17.46 | 20.90 | 23.40 | 35.58 | 25.64 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 19.31 | 20.84 | 21.54 | 21.51 | 22.09 | 20.68 | 23.54 | 25.98 | 28.28 | 24.86 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 15.02 | 14.06 | 13.30 | 11.97 | 13.61 | 11.56 | 10.22 | 11.57 | 12.37 | 10.63 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 24.68 | 26.48 | 24.82 | 26.15 | 29.36 | 28.68 | 35.30 | 46.33 | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
Operating profit per share
= (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ No. shares of common stock outstanding
= (456,800,000 + 580,600,000 + 739,500,000 + 710,600,000)
÷ 228,051,842 = 10.91
3 Closing price as at the filing date of Trane Technologies plc Quarterly or Annual Report.
4 Q1 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 177.74 ÷ 10.91 = 16.30
5 Click competitor name to see calculations.
- Share Price Trend
- The share price showed an overall upward trend from March 2018 to December 2019, rising from $85.16 to a peak of $144.97. This upward momentum was interrupted in 2020, reflecting volatility presumably due to external market factors, with a low of $82.16 in March 2020. Subsequently, the share price recovered consistently through 2021, reaching a high of $200.28 in June 2021, before experiencing a decline towards the end of 2021 and early 2022. From mid-2022 onwards, the price gradually rose again, achieving approximately $177.74 by March 2023.
- Operating Profit Per Share (Operating Profit/Share)
- Operating profit per share data begins in March 2019, showing a generally steady increase over time. It started at $7.92 and displayed minor fluctuations within a narrow range during 2019 and 2020, with a slight dip in late 2020 to $6.43. From 2021 onwards, there was a sustained improvement, climbing from $7.24 in March 2021 to $10.91 by March 2023. This indicates a strengthening operational performance at the per-share level over the analyzed period.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio exhibited considerable fluctuations over the period. Initially, from March 2019 to December 2019, values ranged from 13.1 to 17.13, indicating moderate market valuation relative to operating profits. However, in 2020, the ratio displayed significant volatility, reaching a peak of 22.67 in December 2020, suggesting possible market overvaluation or concerns about profit sustainability during that period. Following this peak, the ratio remained elevated in 2021 at approximately mid-20s but gradually declined through 2022 to a level near 16.3 by March 2023. The decline in the ratio alongside an increase in operating profit per share may indicate improving operational fundamentals gaining recognition in the market.
- Insight Summary
- The company's share price and operating profit per share generally trended upward over the multi-year horizon, despite short-term volatility, particularly around 2020. The peak P/OP ratio in late 2020 may reflect heightened market uncertainty or expectations that were subsequently tempered. The recent period shows a scenario of stronger operating performance combined with a lower valuation multiple, possibly signaling increased investor confidence in the company’s earnings quality and growth stability.
Price to Sales (P/S)
Trane Technologies plc, historical P/S calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 228,051,842 | 229,074,725 | 230,307,296 | 231,717,363 | 233,860,393 | 233,538,091 | 237,540,178 | 237,608,703 | 239,147,507 | 238,428,700 | 240,124,921 | 239,354,158 | 239,207,928 | 238,401,033 | 239,596,850 | 241,576,691 | 241,158,226 | 242,168,631 | 245,656,287 | 245,309,566 | 247,965,196 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Net revenues (in thousands) | 3,665,800) | 4,073,900) | 4,371,900) | 4,190,400) | 3,355,500) | 3,569,300) | 3,719,800) | 3,829,700) | 3,017,600) | 3,179,100) | 3,495,500) | 3,138,800) | 2,641,300) | 4,150,900) | 4,344,300) | 4,527,800) | 3,575,900) | 3,895,100) | 4,030,900) | 4,357,700) | 3,384,500) | |||||||
| Sales per share2 | 71.48 | 69.81 | 67.25 | 64.02 | 61.89 | 60.53 | 57.87 | 56.91 | 53.65 | 52.24 | 55.91 | 59.64 | 65.48 | 69.63 | 68.21 | 66.35 | 65.76 | 64.70 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 177.74 | 183.14 | 160.81 | 150.91 | 141.21 | 156.97 | 178.33 | 200.28 | 178.72 | 145.71 | 127.84 | 110.47 | 82.16 | 144.97 | 127.87 | 118.00 | 122.05 | 103.75 | 92.57 | 96.12 | 85.16 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/S ratio4 | 2.49 | 2.62 | 2.39 | 2.36 | 2.28 | 2.59 | 3.08 | 3.52 | 3.33 | 2.79 | 2.29 | 1.85 | 1.25 | 2.08 | 1.87 | 1.78 | 1.86 | 1.60 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Boeing Co. | 1.73 | 1.90 | 1.30 | 1.53 | 1.50 | 1.87 | 1.93 | 2.20 | 2.44 | 1.96 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 1.89 | 2.27 | 2.08 | 1.88 | 2.38 | 2.26 | 2.41 | 2.59 | 3.23 | 2.83 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 3.23 | 3.31 | 2.99 | 2.95 | 2.96 | 3.03 | 3.51 | 3.39 | 3.25 | 2.96 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | 1.51 | 1.20 | 1.11 | 1.10 | 1.25 | 1.50 | 1.64 | 1.60 | 1.68 | 1.41 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 3.68 | 3.78 | 3.78 | 3.72 | 3.84 | 3.73 | 4.32 | 4.66 | 4.78 | 4.34 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 1.92 | 1.78 | 1.75 | 1.61 | 1.84 | 1.57 | 1.38 | 1.53 | 1.63 | 1.40 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 2.15 | 2.14 | 1.97 | 2.04 | 2.27 | 2.21 | 2.09 | 2.14 | 2.07 | 1.95 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
Sales per share
= (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
÷ No. shares of common stock outstanding
= (3,665,800,000 + 4,073,900,000 + 4,371,900,000 + 4,190,400,000)
÷ 228,051,842 = 71.48
3 Closing price as at the filing date of Trane Technologies plc Quarterly or Annual Report.
4 Q1 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 177.74 ÷ 71.48 = 2.49
5 Click competitor name to see calculations.
- Share Price Trends
- The share price demonstrated an overall upward trend from March 31, 2018, to December 31, 2019, increasing from approximately $85.16 to a peak of $144.97. This was followed by a significant decline to $82.16 by March 31, 2020, likely reflecting market turbulence at that time. Subsequently, a recovery phase is observable with the share price rising steadily to a new high of $200.28 by June 30, 2021. Afterward, the share price faced a gradual decline through to December 31, 2021, before another downturn to about $141.21 in March 31, 2022. The price rebounded moderately in the following quarters, reaching around $183.14 by December 31, 2022, but then slightly decreased again to $177.74 by March 31, 2023.
- Sales Per Share Analysis
- Sales per share data is available starting March 31, 2019, where the value was $64.7. A gradual increase occurred up to December 31, 2019, reaching $68.21. This was followed by a steady decline through 2020, falling to $52.24 by December 31, 2020. From March 31, 2021, sales per share began a recovery trajectory, rising steadily through subsequent quarters to $71.48 by March 31, 2023. This suggests a resilient recovery and growth in sales per share following the COVID-19 related dip during 2020.
- Price-to-Sales (P/S) Ratio Dynamics
- The P/S ratio exhibits notable volatility across the observed periods. Starting at 1.6 on March 31, 2019, it climbed markedly to a peak of 2.08 by December 31, 2019. However, it dropped substantially to 1.25 by March 31, 2020, in line with the share price decline noted previously. A strong rebound followed, with the P/S ratio reaching its highest point of 3.52 on June 30, 2021, indicating an elevated market valuation relative to sales during this period. From then, it declined gradually through 2021 and into early 2022 before stabilizing around the 2.3 to 2.6 range toward the end of 2022 and early 2023. Overall, the P/S ratio reflects investor sentiment fluctuations relative to sales performance, with peaks coinciding with share price surges and troughs aligning with broader market downturns.
- Summary Insights
- The data reveals significant volatility influenced by external factors around early 2020, with marked declines in share price and P/S ratio concurrent with declining sales per share. Post-2020, a recovery phase is evident, with sales per share demonstrating consistent growth and share price showing rebounds, albeit with some fluctuations. The P/S ratio peaks suggest periods of heightened market optimism or higher valuation multiples, while subsequent declines may reflect market corrections or adjustments in investor expectations. Overall, the trends suggest a company moving through a challenging external environment, recovering well with improving sales metrics, and experiencing fluctuating valuation levels as the market recalibrates its expectations.
Price to Book Value (P/BV)
Trane Technologies plc, historical P/BV calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 228,051,842 | 229,074,725 | 230,307,296 | 231,717,363 | 233,860,393 | 233,538,091 | 237,540,178 | 237,608,703 | 239,147,507 | 238,428,700 | 240,124,921 | 239,354,158 | 239,207,928 | 238,401,033 | 239,596,850 | 241,576,691 | 241,158,226 | 242,168,631 | 245,656,287 | 245,309,566 | 247,965,196 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Total Trane Technologies plc shareholders’ equity (in thousands) | 6,036,100) | 6,088,600) | 5,858,300) | 5,723,500) | 5,998,600) | 6,255,900) | 6,475,100) | 6,457,300) | 6,296,700) | 6,407,700) | 6,366,700) | 5,936,900) | 5,772,600) | 7,267,600) | 7,237,600) | 7,130,500) | 6,885,800) | 7,022,700) | 7,308,100) | 6,787,100) | 7,080,700) | |||||||
| Book value per share (BVPS)2 | 26.47 | 26.58 | 25.44 | 24.70 | 25.65 | 26.79 | 27.26 | 27.18 | 26.33 | 26.87 | 26.51 | 24.80 | 24.13 | 30.48 | 30.21 | 29.52 | 28.55 | 29.00 | 29.75 | 27.67 | 28.56 | |||||||
| Share price1, 3 | 177.74 | 183.14 | 160.81 | 150.91 | 141.21 | 156.97 | 178.33 | 200.28 | 178.72 | 145.71 | 127.84 | 110.47 | 82.16 | 144.97 | 127.87 | 118.00 | 122.05 | 103.75 | 92.57 | 96.12 | 85.16 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/BV ratio4 | 6.72 | 6.89 | 6.32 | 6.11 | 5.51 | 5.86 | 6.54 | 7.37 | 6.79 | 5.42 | 4.82 | 4.45 | 3.40 | 4.76 | 4.23 | 4.00 | 4.27 | 3.58 | 3.11 | 3.47 | 2.98 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 6.13 | 8.09 | 7.16 | 6.14 | 6.96 | 6.62 | 6.61 | 6.65 | 7.86 | 7.20 | 5.64 | 5.32 | 4.11 | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 3.96 | 4.04 | 3.75 | 3.56 | 3.52 | 3.63 | 4.28 | 4.21 | 3.84 | 3.54 | 3.06 | 2.73 | 2.34 | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | 3.39 | 2.43 | 2.53 | 2.26 | 2.27 | 2.64 | 3.15 | 3.43 | 3.53 | 2.89 | 1.95 | 1.71 | 1.63 | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 7.81 | 8.02 | 7.46 | 7.31 | 7.17 | 6.91 | 8.39 | 8.83 | 8.67 | 8.07 | 6.40 | 5.78 | 5.46 | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 13.16 | 12.67 | 9.46 | 9.05 | 12.08 | 9.62 | 9.50 | 15.63 | 17.05 | 15.27 | 20.84 | 27.96 | 30.96 | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 2.03 | 1.97 | 1.85 | 1.89 | 2.04 | 1.95 | 1.87 | 1.87 | 1.75 | 1.53 | 1.26 | 1.35 | 1.25 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
BVPS = Total Trane Technologies plc shareholders’ equity ÷ No. shares of common stock outstanding
= 6,036,100,000 ÷ 228,051,842 = 26.47
3 Closing price as at the filing date of Trane Technologies plc Quarterly or Annual Report.
4 Q1 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 177.74 ÷ 26.47 = 6.72
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited an overall upward trajectory from March 2018 through December 2019, rising from $85.16 to a peak of $144.97, representing considerable growth during this period. A pronounced decline occurred in the first quarter of 2020, dropping sharply to $82.16, likely reflecting market disruptions early that year. Subsequently, the share price recovered robustly, reaching a notable high of $200.28 in June 2021. Following this peak, a downward correction phase ensued through the end of 2021 into early 2022, with prices declining to $141.21 by March 2022. The subsequent quarters till the first quarter of 2023 show a moderate recovery, climbing to $177.74, indicating some stabilization and resilience in the equity valuation.
- Book Value Per Share (BVPS) Dynamics
- The book value per share remained relatively stable throughout the observed periods, fluctuating modestly between $24.13 and $30.48. Initial values around $28.56 in early 2018 gradually declined to about $24.13 by March 2020, coinciding with the same period of share price decline. After mid-2020, BVPS demonstrated a slow but steady rebound, peaking around $27.26 in September 2021 before retreating slightly towards $26.47 by March 2023. The overall limited volatility in BVPS suggests moderate changes in the company’s net asset base over time.
- Price-to-Book Value (P/BV) Ratio Analysis
- The price-to-book value ratio exhibited substantial variation across the studied quarters, reflecting shifts in market sentiment relative to the company’s book value. Initially, the P/BV ratio increased from 2.98 in March 2018 to a high of 4.76 by December 2019, indicating increased investor confidence or share price appreciation outpacing net asset growth. The ratio dipped sharply to 3.4 in March 2020 amidst the share price fall. Subsequently, the P/BV ratio surged substantially, reaching a peak of 7.37 in June 2021, implying heightened market optimism or perhaps overvaluation relative to book value. Thereafter, a gradual decline to 5.86 by December 2021 occurred before oscillating upward again to around 6.72 by the first quarter of 2023. These fluctuations underline volatility in market valuation parameters compared to the underlying book value, influenced by external market conditions and investor perception trends.
- Overall Insights
- The data reflects a highly dynamic equity price environment with notable impacts from external events, particularly in early 2020. Despite these share price fluctuations, the fundamental book value per share remained relatively steady, underscoring consistency in asset value. The P/BV ratio’s volatility suggests varying investor sentiment and market valuation multiples throughout the period, indicating periods of optimism as well as caution. The recent partial recovery in share price alongside moderate P/BV ratios suggests improved market confidence but also highlights persistence of some valuation uncertainty.