Ingersoll Rand Inc. (IR) Intrinsic Value & DCF Valuation
Industrial - Machinery · NYSE
Current Price
$84.62
Intrinsic Value
$93.91
+9.9% margin of safety
What Is Ingersoll Rand Inc.'s Intrinsic Value?
As of 2026-07-29, the base-case DCF model estimates the intrinsic value of Ingersoll Rand Inc. (IR) at $93.91 per share, compared with a market price of $84.62, a margin of safety of +9.9%. The base case assumes 8.3% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $78.55 to $111.39. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Ingersoll Rand Inc. (IR) Undervalued?
At $84.62, IR trades about 9.9% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Brand and Reputation
Ingersoll Rand's long-standing brand recognition and reputation for quality and reliability in industrial machinery create customer loyalty. This trust translates into a preference for their products over newer or less established competitors.
↑Service and Aftermarket Network
An extensive global network of service centers and trained technicians provides crucial after-sales support. This deepens customer relationships and creates switching costs, as replacing this integrated support is difficult.
↑Product Diversification and Scale
A broad portfolio of industrial equipment across various sectors offers resilience. The scale of their operations allows for manufacturing efficiencies and R&D investment that smaller rivals cannot match.
INVESTMENT RISKS
↓Economic Downturns and Capital Expenditure Cycles
Demand for industrial machinery is highly sensitive to global economic conditions and business investment cycles. A prolonged downturn could significantly impact sales and profitability.
↓Supply Chain Volatility and Input Costs
Disruptions in global supply chains and fluctuations in raw material prices can affect production costs and lead times. Managing these external factors is critical for maintaining margins.
↓Integration of Acquisitions
The company has a history of acquisitions. Successfully integrating these businesses and realizing synergies is crucial for long-term value creation and avoiding operational complexities.
Base case
IR base case valuation
Intrinsic Value
$93.91
Margin of safety
+9.9%
Expected annual return
+2.1%
Base case assumptions: 8.3% annual growth, 10.0% discount rate, 29x exit multiple, 5 year projection. Data as of 2026-07-29.
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
28.5x
EV/EBITDA
22.1x
FCF Yield
3.51%
Debt/Equity
0.48x
On a trailing twelve-month basis, IR generates free cash flow per share of $2.96 alongside a ROIC of 6.5%, both central inputs for a DCF valuation. Its P/FCF ratio of 28.5x and FCF yield of 3.51% then frame how IR is priced against peers on a cash flow basis.
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 $84.62, 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 28.5x with a free cash flow yield of 3.51%. 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 0.48x, 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% means the company's return on invested capital sits below the level that typically clears 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 0.48x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 22.1x, 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.