Is Trane Technologies plc (TT) undervalued or overvalued?

Our model estimates a fair value of about $386 against a price of $458.89 (Fair, -16% to fair value). It blends a 10-year DCF, sector multiples and earnings-power value and is a model estimate, not advice.

What is the X-Ray Score for TT?

Trane Technologies plc has an X-Ray Score of 58 out of 100, built from valuation, growth, profitability, financial health and dividend lenses ranked against Industrials peers.

Where does the data for TT come from?

Financial statements come from SEC EDGAR filings, prices from exchange price feeds, and industry betas and equity risk premium from Damodaran Online (NYU Stern).

Trane Technologies plc (TT)

Industrials · Building Products · US stock · S&P 500 component

$458.89 ▲ +1.53 (0.33%)

At close 16 Oct 2026 · USD · Volume 1,557,600

Compare with AOS Historical data Research report SEC filings

Fair valueFair

$386 −15.9% to fair value

$193fair band $270–$502$579

Day's range

$453.84 – $468.49

52-week range

$345.62 – $504.68

About Trane Technologies plc

Trane Technologies provides heating, ventilation and air conditioning systems, refrigeration for transport and related controls and services. Its equipment is installed in commercial buildings, homes and transport fleets, and it has a significant service and parts business. The company earns money from sales of equipment, from maintenance contracts and replacement parts, and from energy efficiency projects. Construction activity and building energy demand influence its results.

Sales came to $22.2 billion in the last twelve months, having expanded at 10.1% a year across the last three years. Its operating margin came to 17.9%, and return on invested capital was 24%. Net debt stands at 1.1 times EBITDA. The company pays a dividend, yielding 0.9%. On the site's X-Ray Score it receives 58 out of 100.

Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.

Price chart

Historical data & CSV

52-wk range $345.62 – $504.68Volume 1,557,600Daily, split-adjusted

Vitals

Market cap$102.1B

52-week range$345.62 – $504.68

Volume (last day)1,557,600

P/E (TTM)34.8

EBIT / EV yield3.7%

Free-cash-flow yield3.5%

Dividend yield0.9%

Revenue (TTM)$22.2B

Net income (TTM)$2.9B

Operating margin17.9%

Return on capital23.8%

Debt incl. leases$4.6B

Cash & securities$0

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$386model spread $367 – $409

Fair −15.9% to fair value

Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.

Price $459

Undervalued < $270Fair $270 – $502Overvalued > $502

10-year DCF (market-scaled)

$385

Peer multiples

$370

Earnings power floor (not blended)

$122

Fundamentals-adjusted multiple

$403

Growth the price implies

19.1%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.

What this means

Average business, fairly priced

The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better ✓ 64 The price is not above fair value $386 fair value Debt looks manageable 1.1× EBITDA Revenue has been growing 10.1% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.

Valuation Weak

32/100

Expensive against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield3.7%

Free-cash-flow yield3.5%

Fair value vs price0.8×

Growth Strong

78/100

Growing faster than most of its sector.

See the numbers →

Revenue growth (3y)10.1%

EPS growth (3y)20.2%

Growth consistency100%

Profitability Fair

62/100

Returns on capital are typical for its sector.

See the numbers →

Return on invested capital23.8%

Operating margin17.9%

Financial health Fair

66/100

Balance sheet is in typical shape for its sector.

See the numbers →

Piotroski F-Score9 / 9

Net debt / EBITDA1.1×

Interest cover18.1×

Dividends Fair

59/100

Dividend is typical for its sector.

See the numbers →

Dividend yield0.9%

Dividends vs free cash flow26%

Dividend growth10.5%

Quarterly results: last 6 quarters

+11.2%

Mar '25

+8.3%

Jun '25

+5.5%

Sep '25

+5.5%

Dec '25

+6.0%

Mar '26

+10.6%

Jun '26

Revenue against the same quarter a year earlier. Latest quarter revenue $6.4B, diluted EPS $4.16.

Compare with peers

AOS Smith A O Corp68 LII Lennox International I...62 ALLE Allegion plc62 MAS Masco Corp58

Other Building Products companies by X-Ray Score.

Fundamentals checklist

● 7 Good · ● 5 Average · ● 3 Bad

Cash quality

Earnings backed by cashAverage

Free-cash-flow yieldBad

Risk models

Altman Z''Average

Piotroski F-ScoreGood

Growth

EPS growth (3y)Good

Free-cash-flow growth (3y)Good

Revenue growth (3y)Good

Growth consistencyGood

Balance sheet

Current ratioBad

Net debt / EBITDAGood

Interest coverAverage

Valuation

Fair value vs priceAverage

EBIT / EV yieldBad

Profitability

Return on invested capitalGood

Operating marginAverage

Each check is graded against the company's sector, not a fixed number. Checklist score 58/100.

Financials

	FY21	FY22	FY23	FY24	FY25
Revenue	$14.1B	$16.0B	$17.7B	$19.8B	$21.3B
Operating income	$2.0B	$2.4B	$2.9B	$3.5B	$4.0B
Net income	$1.4B	$1.8B	$2.0B	$2.6B	$2.9B
Operating cash flow	$1.6B	$1.5B	$2.4B	$3.1B	$3.2B
Operating margin	14.3%	15.1%	16.4%	17.6%	18.6%
Free cash flow	$1.4B	$1.2B	$2.1B	$2.8B	$2.8B
Diluted EPS	$5.87	$7.48	$8.77	$11.24	$12.98

Fiscal years, from SEC filings.

Technical summary

Daily

Neutral

7 bullish · 4 neutral · 5 bearish

Weekly

Bullish

8 bullish · 1 neutral · 3 bearish

Monthly

Strongly bullish

7 bullish · 1 neutral · 0 bearish

Moving averages (daily)

SMA 10	470.4	Bearish
EMA 10	465.7	Bearish
SMA 20	459.4	Bearish
EMA 20	461.2	Bearish
SMA 50	454.6	Bullish
EMA 50	457.7	Bullish
SMA 100	462.3	Bearish
EMA 100	457.1	Bullish
SMA 200	450.0	Bullish
EMA 200	448.7	Bullish

Oscillators (daily)

RSI (14)	49.80	Neutral
MACD (12, 26)	5.45	Bullish
Momentum (12)	1.53	Bullish
Stochastic %K (14)	35.50	Neutral
Williams %R (14)	-64.50	Neutral
CCI (20)	9.08	Neutral

Pivot points (classic, last session)

437.7

445.8

452.3

Pivot

460.4

467.0

475.1

481.6

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

Dividends

Paid, last 12 months

4.09 USD

Yield on today's price

0.89%

Frequency

Quarterly

Next ex-dividend date

4 Dec 2026

Ex-dividend date	Amount per share
4 Dec 2026 (upcoming)	1.0500
4 Sep 2026	1.0500
5 Jun 2026	1.0500
6 Mar 2026	1.0500
5 Dec 2025	0.9400
5 Sep 2025	0.9400
6 Jun 2025	0.9400
7 Mar 2025	0.9400
6 Dec 2024	0.8400
6 Sep 2024	0.8400
7 Jun 2024	0.8400
29 Feb 2024	0.8400