Trane Technologies plc logo TT - Trane Technologies plc

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 11
HOLD 14
SELL 1
STRONG
SELL
0
| PRICE TARGET: $522.73 DETAILS
HIGH: $585.00
LOW: $450.00
MEDIAN: $530.00
CONSENSUS: $522.73
UPSIDE: 15.90%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 70% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild
Trading 8.7% above fair value
Current Price $451.02
Bear Case $261.57 42.0% downside ($261.57 - $451.02) / $451.02 = -42.0% 9% stage 1 growth, 11% discount
Fair Value $414.95 8.0% downside ($414.95 - $451.02) / $451.02 = -8.0% 15% stage 1 growth, 11% discount
Bull Case $584.82 29.7% upside ($584.82 - $451.02) / $451.02 = 29.7% 19% stage 1 growth, 11% discount

Adjust Assumptions

14.8%
11.0%
3.0%

Key Value Driver

FCF growth rate (15% base case)

Terminal Value % of EV 43%
Implied Market Multiple 36.5x

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $522.73 from 26 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $414.95 per share.

Warnings

Wall Street's average price target is $522.73 (from 26 analysts). Our estimate is 27% below the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions