Ingersoll Rand Inc. (IR) Stock Valuation — PE Analysis
Industrial - Machinery · NYSE
Current Price
$83.92
PE Ratio (TTM)
55.9x
Intrinsic Value
$78.72
-6.6% margin of safety
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 PE valuation
At a current price of $83.92, the base case PE valuation puts IR fair value near $78.72 per share. That figure assumes 8.9% yearly earnings growth, a target PE multiple of 50x, and a 10% discount rate.
Intrinsic Value
$78.72
Margin of safety
-6.6%
Expected annual return
-1.3%
Base case assumptions: 8.9% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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)
55.9x
PEG Ratio
n/m
Earnings Yield
1.78%
ROE (TTM)
5.8%
Revenue/Share (TTM)
$19.85
Dividend Yield
0.10%
Debt/Equity
0.48x
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 55.9x combined with a PEG ratio of -2.11 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 (55.9x) against the Industrial - Machinery median to assess relative pricing, (2) check the PEG ratio (-2.11) 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 -2.11, calculated by dividing the PE ratio (55.9x) 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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.