Latest Ratios: P/E Ratio 36.7x · EV/EBITDA 25.6x · ROE 36.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $105.3B | $87.0B | $84.4B | $56.3B | $39.5B | $49.0B | $35.3B | $25.2B | $17.7B | $17.9B | $15.2B |
| Enterprise Value | $108.1B | $89.9B | $88.2B | $60.0B | $43.1B | $51.6B | $37.3B | $29.5B | $20.9B | $20.4B | $17.6B |
| P/E Ratio → | 36.65 | 29.98 | 32.86 | 27.81 | 22.47 | 34.42 | 41.24 | 17.87 | 13.23 | 13.70 | 10.30 |
| P/S Ratio | 4.94 | 4.08 | 4.25 | 3.18 | 2.47 | 3.46 | 2.83 | 1.93 | 1.43 | 1.26 | 1.13 |
| P/B Ratio | 12.37 | 10.12 | 11.27 | 8.02 | 6.45 | 7.78 | 5.47 | 3.43 | 2.49 | 2.46 | 2.24 |
| P/FCF | 37.45 | 30.95 | 30.40 | 26.94 | 32.57 | 35.85 | 27.38 | 15.13 | 16.98 | 13.71 | 11.56 |
| P/OCF | 32.96 | 27.24 | 26.82 | 23.55 | 26.25 | 30.82 | 24.59 | 13.13 | 12.57 | 11.72 | 10.15 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.22 | 4.44 | 3.39 | 2.70 | 3.65 | 2.99 | 2.25 | 1.69 | 1.43 | 1.30 |
| EV / EBITDA | 25.56 | 21.24 | 22.72 | 18.52 | 15.74 | 22.28 | 20.40 | 15.05 | 11.15 | 10.11 | 9.01 |
| EV / EBIT | 27.26 | 23.01 | 25.33 | 21.40 | 17.99 | 25.50 | 24.25 | 17.95 | 11.11 | 12.47 | 8.96 |
| EV / FCF | — | 31.97 | 31.77 | 28.70 | 35.56 | 37.82 | 28.92 | 17.70 | 20.04 | 15.64 | 13.35 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.2% | 36.2% | 35.7% | 33.1% | 31.0% | 31.6% | 30.5% | 30.8% | 30.5% | 30.9% | 31.1% |
| Operating Margin | 18.6% | 18.6% | 17.6% | 16.4% | 15.1% | 14.3% | 12.3% | 12.8% | 12.2% | 11.7% | 11.9% |
| Net Profit Margin | 13.7% | 13.7% | 12.9% | 11.4% | 11.0% | 10.1% | 6.9% | 10.8% | 10.8% | 9.2% | 10.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 36.3% | 36.3% | 35.4% | 30.8% | 28.3% | 22.4% | 12.4% | 19.5% | 18.6% | 18.5% | 23.2% |
| ROA | 14.0% | 14.0% | 13.0% | 10.8% | 9.7% | 7.9% | 4.4% | 7.3% | 7.4% | 7.3% | 8.6% |
| ROIC | 26.2% | 26.2% | 23.9% | 21.2% | 19.4% | 17.4% | 11.5% | 11.4% | 11.3% | 13.2% | 12.9% |
| ROCE | 27.2% | 27.2% | 25.5% | 22.5% | 18.8% | 14.9% | 10.4% | 11.4% | 11.2% | 12.3% | 11.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.54 | 0.54 | 0.72 | 0.68 | 0.79 | 0.77 | 0.82 | 0.76 | 0.58 | 0.56 | 0.60 |
| Debt / EBITDA | 1.09 | 1.09 | 1.39 | 1.48 | 1.77 | 2.09 | 2.89 | 2.85 | 2.18 | 2.02 | 2.09 |
| Net Debt / Equity | — | 0.33 | 0.51 | 0.53 | 0.59 | 0.43 | 0.31 | 0.58 | 0.45 | 0.35 | 0.35 |
| Net Debt / EBITDA | 0.67 | 0.67 | 0.98 | 1.14 | 1.32 | 1.16 | 1.08 | 2.18 | 1.70 | 1.25 | 1.21 |
| Debt / FCF | — | 1.01 | 1.37 | 1.76 | 2.98 | 1.97 | 1.54 | 2.56 | 3.06 | 1.93 | 1.79 |
| Interest Coverage | 17.17 | 17.17 | 14.60 | 11.95 | 10.72 | 8.67 | 6.18 | 6.76 | 8.51 | 7.57 | 8.86 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.25 | 1.25 | 1.21 | 1.13 | 1.12 | 1.36 | 1.59 | 1.28 | 1.33 | 1.27 | 1.55 |
| Quick Ratio | 0.92 | 0.92 | 0.88 | 0.78 | 0.77 | 1.04 | 1.32 | 0.93 | 0.94 | 0.95 | 1.17 |
| Cash Ratio | 0.28 | 0.28 | 0.26 | 0.18 | 0.21 | 0.45 | 0.76 | 0.27 | 0.21 | 0.32 | 0.48 |
| Asset Turnover | — | 1.00 | 0.98 | 0.91 | 0.88 | 0.78 | 0.69 | 0.64 | 0.69 | 0.78 | 0.78 |
| Inventory Turnover | 6.47 | 6.47 | 6.47 | 5.49 | 5.53 | 6.31 | 7.27 | 5.31 | 5.12 | 6.31 | 6.73 |
| Days Sales Outstanding | — | 55.38 | 56.86 | 70.52 | 63.45 | 62.73 | 64.54 | 60.98 | 79.22 | 63.69 | 60.06 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.0% | 0.9% | 1.2% | 1.6% | 1.1% | 1.4% | 2.0% | 2.7% | 2.4% | 2.3% |
| Payout Ratio | 28.7% | 28.7% | 29.5% | 33.8% | 35.3% | 39.4% | 59.3% | 36.2% | 35.8% | 33.0% | 23.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.7% | 3.3% | 3.0% | 3.6% | 4.4% | 2.9% | 2.4% | 5.6% | 7.6% | 7.3% | 9.7% |
| FCF Yield | 2.7% | 3.2% | 3.3% | 3.7% | 3.1% | 2.8% | 3.7% | 6.6% | 5.9% | 7.3% | 8.6% |
| Buyback Yield | 1.4% | 1.7% | 1.5% | 1.2% | 3.0% | 2.2% | 0.7% | 3.0% | 5.1% | 5.7% | 1.6% |
| Total Shareholder Yield | 2.2% | 2.7% | 2.4% | 2.4% | 4.6% | 3.4% | 2.1% | 5.0% | 7.8% | 8.1% | 3.9% |
| Shares Outstanding | — | $224M | $228M | $231M | $235M | $242M | $243M | $244M | $250M | $258M | $262M |
Cyclical commercial construction exposure
According to current market data, Trane Technologies trades at a TTM P/E of 36.82, a valuation that appears to command a significant premium over traditional industrial peers, suggesting investors are pricing in the company's transition toward a high-margin, recurring service-based model rather than a purely cyclical equipment manufacturer.
The forward P/E of 32.04 implies that the market expects sustained earnings growth, likely driven by the regulatory-forced replacement cycle of HVAC systems. While this multiple is elevated relative to historical norms, it may be justified if the company successfully captures higher margins through its proprietary digital service ecosystem.
Based on reported financial figures, Trane Technologies' ROIC has fluctuated between 4.4% and 7.6% over the last ten quarters, indicating that while the company is compounding capital, returns remain sensitive to the timing of large-scale project completions and the integration of recent strategic acquisitions.
The variance in ROIC suggests that the company's ability to generate excess returns is heavily dependent on the efficiency of its 'Trane Technologies Business System' in managing fixed costs. Investors should monitor whether future capital deployment into digital software capabilities can sustainably lift these returns above the current mid-single-digit range.
As reported in quarterly filings, the company's cash conversion cycle has shown notable volatility, ranging from 55 to 77 days, which reflects the inherent challenges of managing inventory and receivables across complex, multi-year commercial HVAC installations and global logistics cycles for the Thermo King segment.
The fluctuation in DSO and DIO suggests that Trane's working capital efficiency is highly susceptible to seasonal demand and the timing of large project milestones. This variability warrants close attention, as any sustained extension in the cash conversion cycle could pressure free cash flow generation during periods of slower commercial construction activity.
According to recent balance sheet data, Trane Technologies maintains a debt-to-equity ratio of 0.54, a figure that remains exceptionally conservative for an industrial manufacturer and provides a substantial buffer against potential macroeconomic volatility or the need for further strategic capital allocation.
The company's interest coverage ratio, which has remained consistently above 10x in recent periods, suggests that debt service obligations are well-covered by operating income. This strong balance sheet position appears to offer management significant flexibility to pursue acquisitions or return capital to shareholders without compromising long-term financial stability.
The P/E ratio is frequently misapplied to Trane Technologies because it obscures the company's transition from a cyclical equipment seller to a recurring service provider, failing to account for the high-margin, non-discretionary nature of its long-term building automation and maintenance contracts.
Investors should instead focus on the quality of earnings and the growth of the service backlog, as these metrics better capture the company's structural resilience to economic downturns. Relying solely on P/E multiples may lead to an undervaluation of the company's annuity-like revenue streams, which are increasingly decoupled from the broader commercial construction cycle.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TT stock.
Trane Technologies plc's current P/E ratio is 36.7x. The historical average is 17.8x. This places it at the 96th percentile of its historical range.
Trane Technologies plc's current EV/EBITDA is 25.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.1x.
Trane Technologies plc's return on equity (ROE) is 36.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.5%.
Based on historical data, Trane Technologies plc is trading at a P/E of 36.7x. This is at the 96th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Trane Technologies plc's current dividend yield is 0.79% with a payout ratio of 28.7%.
Trane Technologies plc has 36.2% gross margin and 18.6% operating margin. Operating margin between 10-20% is typical for established companies.
Trane Technologies plc's Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.