Price to Earnings (P/E)
since 2005
Calculation
Trane Technologies plc, P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings (loss) attributable to Trane Technologies plc1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2023 | 23.88 | = | 183.14 | ÷ | 7.67 | 7.67 | = | 1,756,500 | ÷ | 229,074,725 | |
| Feb 7, 2022 | 25.75 | = | 156.97 | ÷ | 6.09 | 6.09 | = | 1,423,400 | ÷ | 233,538,091 | |
| Feb 9, 2021 | 40.64 | = | 145.71 | ÷ | 3.59 | 3.59 | = | 854,900 | ÷ | 238,428,700 | |
| Feb 18, 2020 | 24.50 | = | 144.97 | ÷ | 5.92 | 5.92 | = | 1,410,900 | ÷ | 238,401,033 | |
| Feb 12, 2019 | 18.78 | = | 103.75 | ÷ | 5.52 | 5.52 | = | 1,337,600 | ÷ | 242,168,631 | |
| Feb 12, 2018 | 17.44 | = | 90.91 | ÷ | 5.21 | 5.21 | = | 1,302,600 | ÷ | 249,889,299 | |
| Feb 13, 2017 | 14.41 | = | 81.98 | ÷ | 5.69 | 5.69 | = | 1,476,200 | ÷ | 259,508,972 | |
| Feb 12, 2016 | 19.83 | = | 51.32 | ÷ | 2.59 | 2.59 | = | 664,600 | ÷ | 256,847,948 | |
| Feb 13, 2015 | 19.13 | = | 67.69 | ÷ | 3.54 | 3.54 | = | 931,700 | ÷ | 263,321,574 | |
| Feb 14, 2014 | 26.25 | = | 58.43 | ÷ | 2.23 | 2.23 | = | 618,800 | ÷ | 278,035,707 | |
| Feb 14, 2013 | 15.43 | = | 53.03 | ÷ | 3.44 | 3.44 | = | 1,018,600 | ÷ | 296,317,386 | |
| Feb 21, 2012 | 35.52 | = | 40.99 | ÷ | 1.15 | 1.15 | = | 343,200 | ÷ | 297,375,890 | |
| Feb 22, 2011 | 23.66 | = | 46.11 | ÷ | 1.95 | 1.95 | = | 642,200 | ÷ | 329,577,804 | |
| Feb 26, 2010 | 22.70 | = | 31.91 | ÷ | 1.41 | 1.41 | = | 451,300 | ÷ | 321,072,029 | |
| Mar 2, 2009 | — | = | 12.99 | ÷ | -8.23 | -8.23 | = | -2,624,800 | ÷ | 318,864,140 | |
| Feb 29, 2008 | 2.88 | = | 41.86 | ÷ | 14.55 | 14.55 | = | 3,966,700 | ÷ | 272,645,080 | |
| Mar 1, 2007 | 12.84 | = | 43.08 | ÷ | 3.35 | 3.35 | = | 1,032,500 | ÷ | 307,801,047 | |
| Mar 1, 2006 | 13.03 | = | 41.96 | ÷ | 3.22 | 3.22 | = | 1,054,200 | ÷ | 327,478,397 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Trane Technologies plc Annual Report.
The financial data reflects a long-term appreciation in share price coupled with significant volatility in earnings per share (EPS), which has resulted in fluctuating valuation multiples over the observed period.
- Share Price Trajectory
- A general upward trend is observed in the share price, which rose from 41.96 USD in 2006 to 183.14 USD by 2023. A notable contraction occurred in 2009, where the price reached a period low of 12.99 USD, followed by a sustained recovery and growth phase from 2010 onward.
- Earnings Per Share (EPS) Dynamics
- Earnings exhibit substantial volatility. A peak EPS of 14.55 USD was recorded in 2008, immediately followed by a deficit of -8.23 USD in 2009. Since 2010, EPS has generally trended upward, stabilizing and eventually reaching 7.67 USD in 2023, indicating a recovery and growth in fundamental profitability.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio has transitioned through several distinct phases. Between 2006 and 2007, the multiple remained stable around 13x. A sharp decline to 2.88 occurred in 2008, coinciding with the spike in EPS. Following the earnings loss in 2009, the P/E ratio expanded significantly, peaking at 35.52 in 2012 and reaching a period high of 40.64 in 2021. The most recent data from 2022 and 2023 indicates a normalization of the multiple, settling between 23.88 and 25.75, which suggests a higher valuation premium compared to the mid-2000s.
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Comparison to Competitors
Trane Technologies plc, P/E, long-term trends, comparison to competitors
| Trane Technologies plc | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 10, 2023 | 23.88 | — | 19.15 | 27.93 | — | 26.97 | 20.48 | 27.59 |
| Feb 7, 2022 | 25.75 | — | 16.82 | 27.77 | — | 23.14 | 16.70 | 36.79 |
| Feb 9, 2021 | 40.64 | — | 36.80 | 37.46 | 19.67 | 29.63 | 13.44 | — |
| Feb 18, 2020 | 24.50 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Feb 12, 2019 | 18.78 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Feb 12, 2018 | 17.44 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Feb 13, 2017 | 14.41 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Feb 12, 2016 | 19.83 | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Feb 13, 2015 | 19.13 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Feb 14, 2014 | 26.25 | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Feb 14, 2013 | 15.43 | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Feb 21, 2012 | 35.52 | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Feb 22, 2011 | 23.66 | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
| Feb 26, 2010 | 22.70 | 33.40 | 40.66 | 29.60 | 16.09 | 13.44 | 9.56 | 16.33 |
| Mar 2, 2009 | — | 11.63 | 4.51 | 5.65 | 6.62 | 8.71 | 8.47 | 9.57 |
| Feb 29, 2008 | 2.88 | 15.99 | 12.54 | 11.89 | 15.45 | 17.07 | 14.15 | 16.61 |
| Mar 1, 2007 | 12.84 | 32.40 | 12.28 | 12.47 | 17.11 | 18.37 | 16.95 | 18.16 |
| Mar 1, 2006 | 13.03 | 22.62 | 17.17 | 12.82 | 21.07 | 20.71 | 17.45 | 18.76 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Trane Technologies plc, P/E, long-term trends, comparison to sector (capital goods)
| Trane Technologies plc | Capital Goods | |
|---|---|---|
| Feb 10, 2023 | 23.88 | 40.21 |
| Feb 7, 2022 | 25.75 | 57.31 |
| Feb 9, 2021 | 40.64 | 123.55 |
| Feb 18, 2020 | 24.50 | 39.03 |
| Feb 12, 2019 | 18.78 | 56.00 |
| Feb 12, 2018 | 17.44 | 55.16 |
| Feb 13, 2017 | 14.41 | 23.62 |
| Feb 12, 2016 | 19.83 | 33.10 |
| Feb 13, 2015 | 19.13 | 17.47 |
| Feb 14, 2014 | 26.25 | 18.85 |
| Feb 14, 2013 | 15.43 | 15.74 |
| Feb 21, 2012 | 35.52 | 15.20 |
| Feb 22, 2011 | 23.66 | 18.46 |
| Feb 26, 2010 | 22.70 | 17.22 |
| Mar 2, 2009 | — | 7.48 |
| Feb 29, 2008 | 2.88 | 15.28 |
| Mar 1, 2007 | 12.84 | 17.63 |
| Mar 1, 2006 | 13.03 | 20.11 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Trane Technologies plc, P/E, long-term trends, comparison to industry (industrials)
| Trane Technologies plc | Industrials | |
|---|---|---|
| Feb 10, 2023 | 23.88 | 36.06 |
| Feb 7, 2022 | 25.75 | 35.59 |
| Feb 9, 2021 | 40.64 | — |
| Feb 18, 2020 | 24.50 | 43.95 |
| Feb 12, 2019 | 18.78 | 33.70 |
| Feb 12, 2018 | 17.44 | 29.83 |
| Feb 13, 2017 | 14.41 | 22.92 |
| Feb 12, 2016 | 19.83 | 22.89 |
| Feb 13, 2015 | 19.13 | 18.79 |
| Feb 14, 2014 | 26.25 | 19.13 |
| Feb 14, 2013 | 15.43 | 17.77 |
| Feb 21, 2012 | 35.52 | 15.75 |
| Feb 22, 2011 | 23.66 | 18.72 |
| Feb 26, 2010 | 22.70 | 19.17 |
| Mar 2, 2009 | — | 9.73 |
| Feb 29, 2008 | 2.88 | 16.93 |
| Mar 1, 2007 | 12.84 | 11.65 |
| Mar 1, 2006 | 13.03 | 50.62 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).