Trane Technologies plc designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, and custom and transport refrigeration. It offers air conditioners, exchangers, and handlers; airside and terminal devices; air sourced heat pumps; chillers; coils and condensers; auxiliary power, cold storage, and condensing units; controls contracting and commissioning, decarbonization programs, and gensets; dehumidifiers; energy and water efficiency programs; energy recovery ventilators and power solutions; energy storage; furnaces; home automation; humidifiers; HVAC performance-monitoring products; and indoor air quality assessments and related products for HVAC and transport solutions.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (26 analysts).
| Parameter | BaseValue |
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Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $398.75 Implied EV: $91.69B |
What growth rate is the market pricing in at $483?
The market implies +16.4% Owner Earnings growth, roughly in line with history — reasonably priced.
Standard FCF implies +17.6%, reflecting ongoing growth investment.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price significantly exceeds estimated intrinsic value while market sentiment is euphoric — elevated risk
