Ingersoll Rand Inc. (IR) Stock Valuation — PE Analysis
Industrial - Machinery · NYSE
Current Price
$74.00
PE Ratio (TTM)
49.4x
Intrinsic Value
$70.52
-4.9% 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 PE valuation
A base case PE valuation for IR estimates a fair value of about $70.52 per share, against a current price of $74. The model assumes 6.9% annual earnings growth, a 49x target PE multiple, and a 10% discount rate.
Intrinsic Value
$70.52
Margin of safety
-4.9%
Expected annual return
-1.0%
Base case assumptions: 6.9% annual earnings growth, 49x 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 IR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Ingersoll Rand Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
49.4x
PEG Ratio
n/m
Earnings Yield
2.02%
ROE (TTM)
5.8%
Revenue/Share (TTM)
$19.85
Dividend Yield
0.11%
Debt/Equity
0.00x
Frequently Asked Questions
What is the PE ratio of IR?
The trailing twelve-month PE ratio of IR reflects how much investors pay per dollar of Ingersoll Rand Inc.'s earnings. This metric is most useful when compared to Industrial - Machinery peers and the company's own historical range.
Is IR overvalued based on PE ratio?
IR's PE of 49.4x combined with a PEG ratio of -1.87 provides a growth-adjusted perspective. IR 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 IR stock using PE ratio?
To value Ingersoll Rand Inc. using PE: (1) Compare the current PE (49.4x) against the Industrial - Machinery median to assess relative pricing, (2) check the PEG ratio (-1.87) 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 IR?
IR's PEG ratio is -1.87, calculated by dividing the PE ratio (49.4x) by the expected earnings growth rate. Because IR 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 IR stock valuation?
PE ratio gives a quick relative read — how IR 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 IR 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 IR 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.