GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Trane Technologies PLC (NYSE:TT) » Definitions » PEG Ratio

TT (Trane Technologies) PEG Ratio : 2.38 (As of Oct. 31, 2024)


View and export this data going back to 1948. Start your Free Trial

What is Trane Technologies PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Trane Technologies's PE Ratio without NRI is 34.34. Trane Technologies's 5-Year EBITDA growth rate is 14.40%. Therefore, Trane Technologies's PEG Ratio for today is 2.38.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Trane Technologies's PEG Ratio or its related term are showing as below:

TT' s PEG Ratio Range Over the Past 10 Years
Min: 0.39   Med: 1.74   Max: 45.43
Current: 2.53


During the past 13 years, Trane Technologies's highest PEG Ratio was 45.43. The lowest was 0.39. And the median was 1.74.


TT's PEG Ratio is ranked worse than
71.27% of 644 companies
in the Construction industry
Industry Median: 1.34 vs TT: 2.53

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Trane Technologies PEG Ratio Historical Data

The historical data trend for Trane Technologies's PEG Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Trane Technologies PEG Ratio Chart

Trane Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.86 - 26.74 2.79 1.68

Trane Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.72 1.68 1.81 1.75 -

Competitive Comparison of Trane Technologies's PEG Ratio

For the Building Products & Equipment subindustry, Trane Technologies's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Trane Technologies's PEG Ratio Distribution in the Construction Industry

For the Construction industry and Industrials sector, Trane Technologies's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Trane Technologies's PEG Ratio falls into.



Trane Technologies PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Trane Technologies's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=34.337662337662/14.40
=2.38

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Trane Technologies  (NYSE:TT) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Trane Technologies PEG Ratio Related Terms

Thank you for viewing the detailed overview of Trane Technologies's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Trane Technologies Business Description

Address
170/175 Lakeview Drive, Airside Business Park, Swords County, Dublin, IRL
Trane Technologies manufactures and services commercial and residential HVAC systems and transportation refrigeration solutions under its prominent Trane, American Standard, and Thermo King brands. The $18 billion company generates approximately 70% of sales from equipment and 30% from parts and services. While the firm is domiciled in Ireland, North America accounts for over 70% of its revenue.
Executives
Raymond D Pittard officer: Executive Vice President 800-E BEATY STREET, DAVIDSON NC 28036
David S Regnery director, officer: Chair and CEO C/O INTERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Evan M Turtz officer: Senior Vice President C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Paul A Camuti officer: Senior Vice President 800-E BEATY STREET, DAVIDSON NC 28036
Christopher J Kuehn officer: Vice President & Controller 800-E BEATY STREET, DAVIDSON NC 28036
Mairead Magner officer: Senior Vice President 800-E BEATY STREET, DAVIDSON NC 28036
Keith A Sultana officer: Senior Vice President C/O INGERSOLL RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Mark Majocha officer: VP & Chief Accounting Officer C/O TRANE TECHNOLOGIES COMPANY LLC, 800-E BEATY STREET, DAVIDSON NC 28036
De Jesus Assis Ana Paula director C/O TRANE TECHNOLOGIES COMPANY LLC, 800-E BEATY STREET, DAVIDSON NC 28036
Linda P Hudson director
John A Hayes director C/O BALL CORP, 10 LONGS PEAK DR, BROOMFIELD CO 80021-2510
Melissa N. Schaeffer director 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Mark R George director 650 W PEACHTREE ST NW, ATLANTA GA 30308
Marcia J Avedon officer: Senior Vice President C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Michael W Lamach director, officer: President and CEO C/O INGERSOLL-RAND CO, 800-E BEATY STREET, DAVIDSON NC 28036