Industrials · Building Products · US stock · price as of 16 Oct 2026
Key indicators
Price
$458.89
52-week range
$345.62 – $504.68
Market cap
$102.1B
P/E (trailing)
34.8×
EV / EBITDA
24.4×
Free-cash-flow yield
3.5%
Dividend yield
0.9%
Revenue (last 12 months)
$22.2B
Revenue growth (3y a year)
10.1%
Operating margin
17.9%
Return on invested capital
23.8%
Net debt / EBITDA
1.1×
Fair value
Blended fair value$385.91 range $367 – $409
Versus priceFair−16% to fair value
Peer multiples
$369.85
Fundamentals-adjusted multiple
$402.66
10-year DCF (market-scaled)
$385.23
Earnings power value (floor, not blended)
$121.53
Model uncertainty
Medium
X-Ray Score
58/ 100 · High confidence · ahead of 74% of sector peers
Valuation32
Growth78
Profitability62
Financial health66
Dividends59
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
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%.
StocksXray gives Trane Technologies plc an X-Ray Score of 58 out of 100 (high confidence), ahead of 74% of the S&P 500 stocks in its sector. Its strongest lens is growth (78) and its weakest is valuation (32).
Our fair value blend is $385.91 (range $367.05 to $409.14). At $458.89 the stock trades 19% above that blend, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Trane Technologies plc (TT)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$190.32
$161.12
$237.48
$363.28
$386.47
$458.89
Market cap
$46.1B
$37.8B
$54.8B
$83.0B
$86.9B
$102.1B
P/E
32.4×
21.5×
27.1×
32.3×
29.8×
34.8×
EV / revenue
3.5×
2.6×
3.3×
4.3×
4.2×
4.8×
EV / EBITDA
21.0×
15.1×
18.0×
22.2×
20.7×
24.4×
Price / free cash flow
33.8×
31.2×
26.2×
29.9×
30.9×
28.8×
Free-cash-flow yield
3.0%
3.2%
3.8%
3.3%
3.2%
3.5%
Price / book
7.4×
6.2×
7.8×
11.1×
10.1×
11.8×
Dividend yield
1.24%
1.66%
1.26%
0.92%
0.97%
0.89%
Fundamentals checklist ● 7 Good · ● 5 Average · ● 3 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−3.9%Average
Free-cash-flow yield3.5%Bad
Risk models
Altman Z score3.3×Average
Piotroski F-Score9 of 9Good
Growth
EPS growth (3y)20.2%Good
Free-cash-flow growth (3y)32.4%Good
Revenue growth (3y)10.1%Good
Growth consistency100%Good
Balance sheet
Current ratio1.1×Bad
Net debt / EBITDA1.1×Good
Interest cover18.1×Average
Valuation
Fair value vs price0.8×Average
EBIT / EV yield3.7%Bad
Profitability
Return on invested capital23.8%Good
Operating margin17.9%Average
XStocksXray
Trane Technologies plc (TT)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
14,136
15,992
17,678
19,838
21,322
22,210
Gross profit
–
–
–
–
–
–
Operating income
2,023
2,419
2,894
3,500
3,967
3,985
Net income
1,423
1,757
2,024
2,568
2,919
2,949
Diluted EPS ($)
5.87
7.48
8.77
11.24
12.98
13.18
Free cash flow
1,365
1,212
2,089
2,775
2,812
3,547
Gross margin
–
–
–
–
–
–
Operating margin
14.3%
15.1%
16.4%
17.6%
18.6%
17.9%
Net margin
10.1%
11.0%
11.4%
12.9%
13.7%
13.3%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
18,060
18,082
19,392
20,147
21,421
23,926
Cash
2,159
1,221
1,095
1,590
1,763
–
Total debt
4,842
4,836
4,780
4,770
4,615
4,617
Equity
6,256
6,089
6,995
7,457
8,579
8,623
Dividend per share ($)
2.36
2.68
3.00
3.36
3.76
4.09
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.