Carrier Global Corporation (CARR) Stock Valuation — PE Analysis
Industrial - Machinery · NYSE
Current Price
$69.91
PE Ratio (TTM)
44.6x
Intrinsic Value
$83.45
+16.2% margin of safety
COMPETITIVE MOAT
↑Brand Recognition & Trust
Carrier's long-standing reputation for reliability and quality in HVAC and refrigeration builds customer loyalty. This established brand equity makes it difficult for new entrants to gain market share.
↑Service & Distribution Network
An extensive global network of trained technicians and distributors provides crucial after-sales support. This infrastructure is a significant barrier to entry and enhances customer retention.
↑Product Innovation & Efficiency
Continuous investment in R&D for energy-efficient and smart climate solutions creates differentiated products. This technological edge appeals to environmentally conscious and cost-sensitive customers.
INVESTMENT RISKS
↓Regulatory & Environmental Shifts
Stricter environmental regulations on refrigerants and energy efficiency could necessitate costly product redesigns. Failure to adapt quickly may impact market competitiveness.
↓Commodity Price Volatility
Fluctuations in raw material costs, such as metals and refrigerants, can impact manufacturing margins. Unpredictable price swings pose a challenge to consistent profitability.
↓Intense Industry Competition
The HVAC and refrigeration market features numerous global and regional competitors. Price wars and aggressive market strategies can erode market share and profitability.
Base case
CARR base case PE valuation
A base case PE valuation for CARR estimates a fair value of about $83.45 per share, against a current price of $69.91. The model assumes 11.4% annual earnings growth, a 45x target PE multiple, and a 10% discount rate.
Intrinsic Value
$83.45
Margin of safety
+16.2%
Expected annual return
+3.6%
Base case assumptions: 11.4% annual earnings growth, 45x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CARR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Carrier Global Corporation respond.
Open PE Calculator for CARRCompany Overview
Carrier Global Corporation is a worldwide provider of advanced technological solutions covering heating, ventilation, and air conditioning (HVAC), refrigeration, fire safety, security, and intelligent building automation. Its operations are structured across three primary business segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment is dedicated to supplying products, controls, services, and complete solutions tailored to the heating, cooling, and ventilation requirements of both residential and commercial clients. Offerings in this area include air conditioning units, heating systems, various control mechanisms, aftermarket components, as well as post-installation repair, maintenance services, and building automation capabilities. The Refrigeration segment focuses on providing transport refrigeration and monitoring products and services. This includes digital solutions for diverse applications such as trucks, trailers, shipping containers, intermodal transport, food retail, and warehouse cooling. Additionally, it offers commercial refrigeration solutions like display cabinets, freezers, integrated systems, and their corresponding controls. The Fire & Security segment delivers a comprehensive suite of technologies for residential, commercial, and industrial environments. This encompasses detection systems for fire, flame, gas, smoke, and carbon monoxide; portable fire extinguishers; advanced fire suppression systems; intruder alarms; access control systems; video management systems; and electronic controls. Its service portfolio further extends to auditing, design, installation, system integration, ongoing maintenance, repair, and monitoring services. The company markets its extensive product range under numerous brands, including Autronica, Det-Tronics, Edwards, Fireye, GST, Kidde, LenelS2, Marioff, Onity, Supra, Carrier, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, Riello, Carrier Commercial Refrigeration, Carrier Transicold, and Sensitech. Established in 2019, Carrier Global Corporation maintains its corporate headquarters in Palm Beach Gardens, Florida.
Financial Metrics — CARR PE Stock Valuation Data
PE Ratio (TTM)
44.6x
PEG Ratio
n/m
Earnings Yield
2.24%
ROE (TTM)
9.3%
Revenue/Share (TTM)
$26.19
Dividend Yield
1.33%
Debt/Equity
0.93x
Frequently Asked Questions
What is the PE ratio of CARR?
The trailing twelve-month PE ratio of CARR reflects how much investors pay per dollar of Carrier Global Corporation's earnings. This metric is most useful when compared to Industrial - Machinery peers and the company's own historical range.
Is CARR overvalued based on PE ratio?
CARR's PE of 44.6x combined with a PEG ratio of -0.59 provides a growth-adjusted perspective. CARR has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Industrial - Machinery, a DCF analysis may be more appropriate.
How do I value CARR stock using PE ratio?
To value Carrier Global Corporation using PE: (1) Compare the current PE (44.6x) against the Industrial - Machinery median to assess relative pricing, (2) check the PEG ratio (-0.59) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CARR?
CARR's PEG ratio is -0.59, calculated by dividing the PE ratio (44.6x) by the expected earnings growth rate. Because CARR has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CARR stock valuation?
PE ratio gives a quick relative read — how CARR is priced versus Industrial - Machinery peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CARR DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value CARR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.