Ingersoll Rand Valuation
| IR Stock | USD 91.28 0.64 0.70% |
At this time, the firm appears to be fairly valued. Ingersoll Rand retains a regular Real Value of $90.32 per share. The prevalent price of the firm is $91.28. Our model calculates the value of Ingersoll Rand from evaluating the firm fundamentals such as Return On Equity of 0.0822, return on asset of 0.0512, and Current Valuation of 38.47 B as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage buying undervalued assets and selling overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting Ingersoll Rand's valuation include:
Price Book 3.7903 | Enterprise Value 38.5 B | Enterprise Value Ebitda 23.2276 | Price Sales 5.3931 | Forward PE 28.3286 |
Fairly Valued
Today
Please note that Ingersoll Rand's price fluctuation is very steady at this time. Calculation of the real value of Ingersoll Rand is based on 3 months time horizon. Increasing Ingersoll Rand's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Ingersoll Rand is useful when determining the fair value of the Ingersoll stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Ingersoll Rand. Since Ingersoll Rand is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ingersoll Stock. However, Ingersoll Rand's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 91.28 | Real 90.32 | Target 75.27 | Hype 91.93 | Naive 89.92 |
The real value of Ingersoll Stock, also known as its intrinsic value, is the underlying worth of Ingersoll Rand Company, which is reflected in its stock price. It is based on Ingersoll Rand's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Ingersoll Rand's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Ingersoll Rand's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Ingersoll Rand helps investors to forecast how Ingersoll stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Ingersoll Rand more accurately as focusing exclusively on Ingersoll Rand's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Ingersoll Rand's intrinsic value based on its ongoing forecasts of Ingersoll Rand's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ingersoll Rand's closest peers. When choosing an evaluation method for Ingersoll Rand, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Ingersoll Rand Investments |
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Ingersoll Valuation Trend
Knowing Ingersoll Rand's actual value is paramount for traders to make sound investment determinations. Ingersoll Rand's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Ingersoll Rand's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Ingersoll Rand's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Ingersoll Market Cap
Ingersoll Rand is rated fifth overall in market capitalization category among related companies. Market capitalization of Industrials industry is currently estimated at about 474.45 Billion. Ingersoll Rand holds roughly 37.08 Billion in market capitalization claiming about 8% of equities under Industrials industry.Ingersoll Rand Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Ingersoll Rand's current stock value. Our valuation model uses many indicators to compare Ingersoll Rand value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ingersoll Rand competition to find correlations between indicators driving Ingersoll Rand's intrinsic value. More Info.Ingersoll Rand is rated third overall in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.10 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Ingersoll Rand is roughly 10.24 . As of 04/16/2024, Price To Book Ratio is likely to drop to 3.04. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ingersoll Rand by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ingersoll Rand's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ingersoll Rand's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Ingersoll Rand's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Ingersoll Rand and how it compares across the competition.
About Ingersoll Rand Valuation
The stock valuation mechanism determines the current worth of Ingersoll Rand on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Ingersoll Rand. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ingersoll Rand based exclusively on its fundamental and basic technical indicators. By analyzing Ingersoll Rand's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Ingersoll Rand's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Ingersoll Rand. We calculate exposure to Ingersoll Rand's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ingersoll Rand's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.5 B | 2 B | |
| Pretax Profit Margin | 0.15 | 0.16 | |
| Operating Profit Margin | 0.17 | 0.18 | |
| Net Profit Margin | 0.11 | 0.12 | |
| Gross Profit Margin | 0.37 | 0.30 |
8 Steps to conduct Ingersoll Rand's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Ingersoll Rand's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Ingersoll Rand's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Ingersoll Rand's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Ingersoll Rand's revenue streams: Identify Ingersoll Rand's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Ingersoll Rand's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Ingersoll Rand's growth potential: Evaluate Ingersoll Rand's management, business model, and growth potential.
- Determine Ingersoll Rand's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Ingersoll Rand's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Ingersoll Rand represents a small ownership stake in the entity. As a stockholder of Ingersoll, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Ingersoll Rand Dividends Analysis For Valuation
As of 04/16/2024, Dividends Paid is likely to grow to about (35.4 M). In addition to that, Dividend Yield is likely to drop to 0.001. At this time, Ingersoll Rand's Retained Earnings are relatively stable compared to the past year. As of 04/16/2024, Earnings Yield is likely to grow to 0.03, while Retained Earnings Total Equity is likely to drop slightly above 8.1 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -37.3 M | -35.4 M | |
| Dividend Yield | 0 | 0.001 | |
| Dividend Payout Ratio | 0.04 | 0.04 | |
| Dividend Paid And Capex Coverage Ratio | (18.87) | (19.81) |
There are various types of dividends Ingersoll Rand can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Ingersoll shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Ingersoll Rand directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Ingersoll pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Ingersoll Rand by the value of the dividends paid out.
Ingersoll Rand Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Ingersoll Rand does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 409 M | |
| Quarterly Earnings Growth Y O Y | 0.046 | |
| Forward Price Earnings | 28.3286 |
Ingersoll Rand Current Valuation Indicators
Valuation refers to the process of determining the present value of Ingersoll Rand and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ingersoll we look at many different elements of the entity such as Ingersoll's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Ingersoll Rand's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Ingersoll Rand's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Ingersoll Rand, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Ingersoll Rand's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Ingersoll Rand's worth.When determining whether Ingersoll Rand is a strong investment it is important to analyze Ingersoll Rand's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Ingersoll Rand's future performance. For an informed investment choice regarding Ingersoll Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Ingersoll Rand. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Ingersoll Stock, please use our How to Invest in Ingersoll Rand guide.You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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When running Ingersoll Rand's price analysis, check to measure Ingersoll Rand's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ingersoll Rand is operating at the current time. Most of Ingersoll Rand's value examination focuses on studying past and present price action to predict the probability of Ingersoll Rand's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ingersoll Rand's price. Additionally, you may evaluate how the addition of Ingersoll Rand to your portfolios can decrease your overall portfolio volatility.
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Is Ingersoll Rand's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ingersoll Rand. If investors know Ingersoll will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ingersoll Rand listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.046 | Dividend Share 0.08 | Earnings Share 1.9 | Revenue Per Share 16.986 | Quarterly Revenue Growth 0.122 |
The market value of Ingersoll Rand is measured differently than its book value, which is the value of Ingersoll that is recorded on the company's balance sheet. Investors also form their own opinion of Ingersoll Rand's value that differs from its market value or its book value, called intrinsic value, which is Ingersoll Rand's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ingersoll Rand's market value can be influenced by many factors that don't directly affect Ingersoll Rand's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ingersoll Rand's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ingersoll Rand is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ingersoll Rand's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.