Price to Sales (P/S)
since 2005
Calculation
Trane Technologies plc, P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net revenues1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2023 | 2.62 | = | 183.14 | ÷ | 69.81 | 69.81 | = | 15,991,700 | ÷ | 229,074,725 | |
| Feb 7, 2022 | 2.59 | = | 156.97 | ÷ | 60.53 | 60.53 | = | 14,136,400 | ÷ | 233,538,091 | |
| Feb 9, 2021 | 2.79 | = | 145.71 | ÷ | 52.24 | 52.24 | = | 12,454,700 | ÷ | 238,428,700 | |
| Feb 18, 2020 | 2.08 | = | 144.97 | ÷ | 69.63 | 69.63 | = | 16,598,900 | ÷ | 238,401,033 | |
| Feb 12, 2019 | 1.60 | = | 103.75 | ÷ | 64.70 | 64.70 | = | 15,668,200 | ÷ | 242,168,631 | |
| Feb 12, 2018 | 1.60 | = | 90.91 | ÷ | 56.82 | 56.82 | = | 14,197,600 | ÷ | 249,889,299 | |
| Feb 13, 2017 | 1.57 | = | 81.98 | ÷ | 52.06 | 52.06 | = | 13,508,900 | ÷ | 259,508,972 | |
| Feb 12, 2016 | 0.99 | = | 51.32 | ÷ | 51.78 | 51.78 | = | 13,300,700 | ÷ | 256,847,948 | |
| Feb 13, 2015 | 1.38 | = | 67.69 | ÷ | 48.96 | 48.96 | = | 12,891,400 | ÷ | 263,321,574 | |
| Feb 14, 2014 | 1.32 | = | 58.43 | ÷ | 44.42 | 44.42 | = | 12,350,500 | ÷ | 278,035,707 | |
| Feb 14, 2013 | 1.12 | = | 53.03 | ÷ | 47.36 | 47.36 | = | 14,034,900 | ÷ | 296,317,386 | |
| Feb 21, 2012 | 0.82 | = | 40.99 | ÷ | 49.71 | 49.71 | = | 14,782,000 | ÷ | 297,375,890 | |
| Feb 22, 2011 | 1.08 | = | 46.11 | ÷ | 42.72 | 42.72 | = | 14,079,100 | ÷ | 329,577,804 | |
| Feb 26, 2010 | 0.78 | = | 31.91 | ÷ | 41.10 | 41.10 | = | 13,195,300 | ÷ | 321,072,029 | |
| Mar 2, 2009 | 0.31 | = | 12.99 | ÷ | 41.48 | 41.48 | = | 13,227,400 | ÷ | 318,864,140 | |
| Feb 29, 2008 | 1.30 | = | 41.86 | ÷ | 32.14 | 32.14 | = | 8,763,100 | ÷ | 272,645,080 | |
| Mar 1, 2007 | 1.16 | = | 43.08 | ÷ | 37.07 | 37.07 | = | 11,409,300 | ÷ | 307,801,047 | |
| Mar 1, 2006 | 1.30 | = | 41.96 | ÷ | 32.21 | 32.21 | = | 10,546,900 | ÷ | 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 analysis of the Price to Sales (P/S) ratio from 2006 to 2023 reveals a long-term trajectory of valuation expansion, punctuated by a period of extreme volatility during the 2008-2009 financial crisis.
- Historical Volatility and Crisis Impact (2006–2011)
- Between 2006 and 2008, the P/S ratio remained relatively stable, fluctuating between 1.16 and 1.30. A severe contraction occurred in 2009, where the ratio dropped to a historical low of 0.31. This decline was driven by a precipitous drop in share price to $12.99, which occurred even as sales per share increased to $41.48. A steady recovery followed, with the ratio returning to 1.08 by 2011.
- Gradual Recovery and Stabilization (2012–2019)
- The period from 2012 to 2019 was characterized by a gradual upward trend in the valuation multiple. After a brief dip to 0.82 in 2012, the P/S ratio rose consistently, peaking and stabilizing at 1.60 between 2018 and 2019. This trend coincided with a steady increase in share price, moving from $40.99 in 2012 to $103.75 in 2019, while sales per share grew from $49.71 to $64.70.
- Significant Valuation Re-rating (2020–2023)
- A notable shift in market valuation is observed starting in 2020, as the P/S ratio escalated to 2.08 and reached a peak of 2.79 in 2021. Despite a minor correction to 2.59 in 2022, the ratio remained elevated at 2.62 by 2023. This indicates a fundamental re-rating by the market, where the share price grew at a rate significantly outpacing the growth in sales per share, suggesting higher investor confidence or improved revenue quality.
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Comparison to Competitors
Trane Technologies plc, P/S, 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 | 2.62 | 1.90 | 2.27 | 3.31 | 1.20 | 3.78 | 1.78 | 2.14 |
| Feb 7, 2022 | 2.59 | 1.87 | 2.26 | 3.03 | 1.50 | 3.73 | 1.57 | 2.21 |
| Feb 9, 2021 | 2.79 | 1.96 | 2.83 | 2.96 | 1.41 | 4.34 | 1.40 | 1.95 |
| Feb 18, 2020 | 2.08 | 2.34 | 1.48 | 1.87 | 1.18 | 3.51 | 2.07 | 1.75 |
| Feb 12, 2019 | 1.60 | 2.26 | 1.47 | 1.58 | 0.82 | 2.59 | 1.58 | 1.56 |
| Feb 12, 2018 | 1.60 | 2.17 | 2.24 | 1.74 | 1.11 | 2.74 | 1.91 | 1.67 |
| Feb 13, 2017 | 1.57 | 1.06 | 1.62 | 1.65 | 2.39 | 2.36 | 1.59 | 1.55 |
| Feb 12, 2016 | 0.99 | 0.80 | 0.86 | 1.25 | 2.59 | 2.06 | 1.43 | 1.26 |
| Feb 13, 2015 | 1.38 | 1.15 | 0.99 | 1.49 | 2.45 | 2.03 | 1.34 | 1.67 |
| Feb 14, 2014 | 1.32 | 1.12 | 1.17 | 1.63 | 2.54 | 1.90 | 1.15 | 1.60 |
| Feb 14, 2013 | 1.12 | 0.70 | 0.99 | 1.79 | 2.39 | 1.46 | 0.60 | 1.43 |
| Feb 21, 2012 | 0.82 | 0.82 | 1.30 | 1.08 | 2.15 | 1.28 | 0.62 | 1.31 |
| Feb 22, 2011 | 1.08 | 0.83 | 1.63 | 1.33 | 2.20 | 1.36 | 0.61 | 1.44 |
| Feb 26, 2010 | 0.78 | 0.64 | 1.23 | 0.95 | 1.66 | 0.94 | 0.64 | 1.19 |
| Mar 2, 2009 | 0.31 | 0.51 | 0.33 | 0.39 | 1.02 | 0.66 | 0.64 | 0.77 |
| Feb 29, 2008 | 1.30 | 0.98 | 1.06 | 0.91 | 3.45 | 1.21 | 1.03 | 1.30 |
| Mar 1, 2007 | 1.16 | 1.17 | 1.12 | 0.96 | 3.54 | 1.22 | 1.08 | 1.44 |
| Mar 1, 2006 | 1.30 | 1.06 | 1.44 | 0.93 | 3.72 | 1.24 | 0.86 | 1.36 |
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/S, long-term trends, comparison to sector (capital goods)
| Trane Technologies plc | Capital Goods | |
|---|---|---|
| Feb 10, 2023 | 2.62 | 2.09 |
| Feb 7, 2022 | 2.59 | 2.09 |
| Feb 9, 2021 | 2.79 | 2.11 |
| Feb 18, 2020 | 2.08 | 1.92 |
| Feb 12, 2019 | 1.60 | 1.62 |
| Feb 12, 2018 | 1.60 | 1.82 |
| Feb 13, 2017 | 1.57 | 1.76 |
| Feb 12, 2016 | 0.99 | 1.55 |
| Feb 13, 2015 | 1.38 | 1.66 |
| Feb 14, 2014 | 1.32 | 1.66 |
| Feb 14, 2013 | 1.12 | 1.37 |
| Feb 21, 2012 | 0.82 | 1.33 |
| Feb 22, 2011 | 1.08 | 1.45 |
| Feb 26, 2010 | 0.78 | 1.12 |
| Mar 2, 2009 | 0.31 | 0.71 |
| Feb 29, 2008 | 1.30 | 1.76 |
| Mar 1, 2007 | 1.16 | 1.91 |
| Mar 1, 2006 | 1.30 | 1.95 |
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/S, long-term trends, comparison to industry (industrials)
| Trane Technologies plc | Industrials | |
|---|---|---|
| Feb 10, 2023 | 2.62 | 1.80 |
| Feb 7, 2022 | 2.59 | 2.07 |
| Feb 9, 2021 | 2.79 | 2.14 |
| Feb 18, 2020 | 2.08 | 1.77 |
| Feb 12, 2019 | 1.60 | 1.58 |
| Feb 12, 2018 | 1.60 | 1.71 |
| Feb 13, 2017 | 1.57 | 1.68 |
| Feb 12, 2016 | 0.99 | 1.48 |
| Feb 13, 2015 | 1.38 | 1.65 |
| Feb 14, 2014 | 1.32 | 1.57 |
| Feb 14, 2013 | 1.12 | 1.31 |
| Feb 21, 2012 | 0.82 | 1.27 |
| Feb 22, 2011 | 1.08 | 1.39 |
| Feb 26, 2010 | 0.78 | 1.09 |
| Mar 2, 2009 | 0.31 | 0.71 |
| Feb 29, 2008 | 1.30 | 1.62 |
| Mar 1, 2007 | 1.16 | 1.73 |
| Mar 1, 2006 | 1.30 | 1.80 |
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).