Ingersoll Rand Inc. (IR) Stock Valuation — DCF Analysis
Industrial - Machinery · NYSE
Current Price
$74.00
Intrinsic Value
$77.92
+5.0% margin of safety
COMPETITIVE MOAT
↑Acquisition Strategy
Ingersoll Rand's strategic acquisitions, like Fox s.r.l., expand its specialized capabilities in metering and dosing. This inorganic growth strengthens its product portfolio and market reach in niche industrial solutions.
↑Technology Partnerships
The partnership with Garrett Motion to advance oil-free compressor technology signifies a commitment to innovation. This collaboration aims to create next-generation solutions, potentially setting new industry standards.
↑Brand Reputation
Ingersoll Rand benefits from a long-standing reputation for reliability and quality in industrial machinery. This established trust with customers can lead to repeat business and a preference for its products.
INVESTMENT RISKS
↓Valuation Concerns
Despite revenue and profit growth, the company's valuation remains elevated. This suggests potential downside risk if growth expectations are not met or if market sentiment shifts.
↓Integration Challenges
Integrating acquired companies like Fox s.r.l. can present operational and cultural challenges. Failure to effectively integrate could hinder the realization of expected synergies and benefits.
↓Competitive Landscape
The industrial machinery sector is highly competitive. New entrants or aggressive innovation from existing players could erode market share and pricing power.
Base case
IR base case valuation
A base case discounted cash flow model for IR estimates an intrinsic value of about $77.92 per share, against a current price of $74. The model assumes 6.9% annual free cash flow growth, a 10.0% discount rate, and a 25x exit multiple.
Intrinsic Value
$77.92
Margin of safety
+5.0%
Expected annual return
+1.0%
Base case assumptions: 6.9% annual growth, 10.0% discount rate, 25x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the IR valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Ingersoll Rand Inc. respond.
Open DCF Calculator for IRCompany Overview
Ingersoll Rand Inc., established in 1859 and headquartered in Davidson, North Carolina, delivers essential air, fluid, energy, medical, and specialized vehicle technologies to customers across the United States, Europe, the Middle East, Africa, and the Asia Pacific regions. The company operates through two primary divisions: Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services division is responsible for the design, production, sales, and maintenance of various air and gas compression, vacuum, and blower solutions, alongside fluid handling and loading systems, power tools, and lifting apparatus. This segment also encompasses all related spare parts, consumables, air purification systems, controls, additional accessories, and support services. Meanwhile, the Precision and Science Technologies segment focuses on designing, manufacturing, and marketing a range of highly specialized positive displacement pumps, advanced fluid management systems, and their associated accessories and aftermarket parts. These solutions are critical for precise liquid and gas operations such as dosing, transfer, dispensing, compression, sampling, pressure regulation, and flow control in demanding or niche environments. Its diverse product portfolio serves a wide array of sectors, including healthcare, scientific research, industrial production, water treatment, chemical processing, advanced irrigation, energy, food and drink, agriculture, and applications involving vacuum and automated fluid handling within manufacturing and industrial settings. Ingersoll Rand distributes its offerings via both its own sales force and a network of independent partners, under numerous well-known brands such as Ingersoll Rand, Gardner Denver, Club Car, CompAir, Nash, Milton Roy, and many others. The company adopted its current name, Ingersoll Rand Inc., in March 2020, having previously been known as Gardner Denver Holdings, Inc.
Financial Metrics — IR Stock Valuation Data
Revenue/Share (TTM)
$19.85
FCF/Share (TTM)
$2.96
ROIC (TTM)
6.5%
ROE (TTM)
5.8%
P/FCF
24.9x
EV/EBITDA
16.7x
FCF Yield
4.01%
Debt/Equity
0.00x
Based on trailing twelve-month data, IR shows a free cash flow per share of $2.96 and a ROIC of 6.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 24.9x and FCF yield of 4.01% are important context metrics when evaluating IR's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of IR?
Ingersoll Rand Inc. currently generates $2.96 in free cash flow per share. At the current price of $74.00, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is IR undervalued?
IR trades at a P/FCF ratio of 24.9x with a free cash flow yield of 4.01%. This P/FCF is in a moderate range. However, whether IR is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value IR stock using DCF?
To perform a DCF valuation on Ingersoll Rand Inc.: (1) Start with the trailing free cash flow per share ($2.96) as the base, (2) project future FCF growth over 5-10 years based on Industrial - Machinery industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting IR's risk profile — with a debt-to-equity of 0.00x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to IR?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Ingersoll Rand Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Industrial - Machinery trends, then discounting those amounts to today's dollars. IR's ROIC of 6.5% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect IR stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For IR, with a debt-to-equity ratio of 0.00x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 16.7x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See IR PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Industrials valuationsDCF and P/E value IR with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.