Stock Analysis on Net
Stock Analysis on Net

Trane Technologies plc (NYSE:TT)

This company has been moved to the archive! The financial data has not been updated since May 3, 2023.

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Trane Technologies plc, FCFF calculation

US$ in thousands

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net earnings attributable to Trane Technologies plc 1,756,500 1,423,400 854,900 1,410,900 1,337,600
Net earnings attributable to noncontrolling interests 18,200 13,200 15,100 17,600 19,900
Net noncash charges 474,100 400,900 552,500 587,400 436,800
Changes in other assets and liabilities, net of the effects of acquisitions (550,100) (243,100) 343,700 (59,600) (319,800)
Net cash provided by operating activities 1,698,700 1,594,400 1,766,200 1,956,300 1,474,500
Cash paid during the year for interest, net of tax1 180,286 191,209 187,495 176,057 166,699
Capital expenditures (291,800) (223,000) (146,200) (254,100) (365,600)
Proceeds from sale of property, plant and equipment 9,700 15,100 100 3,800 22,100
Free cash flow to the firm (FCFF) 1,596,886 1,577,709 1,807,595 1,882,057 1,297,699

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).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Trane Technologies plc suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Trane Technologies plc FCFF decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Interest Paid, Net of Tax

Trane Technologies plc, interest paid, net of tax calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR1 17.30% 18.60% 23.00% 20.30% 16.90%
Interest Paid, Net of Tax
Cash paid during the year for interest, before tax 218,000 234,900 243,500 220,900 200,600
Less: Cash paid during the year for interest, tax2 37,714 43,691 56,005 44,843 33,901
Cash paid during the year for interest, net of tax 180,286 191,209 187,495 176,057 166,699

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).

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2 2022 Calculation
Cash paid during the year for interest, tax = Cash paid during the year for interest × EITR
= 218,000 × 17.30% = 37,714

Enterprise Value to FCFF Ratio, Current

Trane Technologies plc, current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 44,166,336
Free cash flow to the firm (FCFF) 1,596,886
Valuation Ratio
EV/FCFF 27.66
Benchmarks
EV/FCFF, Competitors1
Boeing Co. 23.27
Caterpillar Inc. 17.22
Eaton Corp. plc 43.71
General Electric Co. 34.84
Honeywell International Inc. 30.27
Lockheed Martin Corp. 18.43
RTX Corp. 26.25
EV/FCFF, Sector
Capital Goods 30.60
EV/FCFF, Industry
Industrials 28.46

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Enterprise Value to FCFF Ratio, Historical

Trane Technologies plc, historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 45,585,145 39,358,574 36,743,046 38,875,598 28,354,995
Free cash flow to the firm (FCFF)2 1,596,886 1,577,709 1,807,595 1,882,057 1,297,699
Valuation Ratio
EV/FCFF3 28.55 24.95 20.33 20.66 21.85
Benchmarks
EV/FCFF, Competitors4
Boeing Co. 37.53 — — — —
Caterpillar Inc. 23.54 20.50 23.83 16.84 —
Eaton Corp. plc 33.44 38.16 21.94 15.50 —
General Electric Co. 17.29 56.53 32.34 15.85 —
Honeywell International Inc. 29.82 25.22 26.49 21.13 —
Lockheed Martin Corp. 19.69 13.92 14.64 21.21 —
RTX Corp. 28.45 27.29 35.26 21.94 —
EV/FCFF, Sector
Capital Goods 25.87 32.16 74.97 24.73 —
EV/FCFF, Industry
Industrials 24.29 28.77 189.30 30.14 —

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).

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2 See details »

3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 45,585,145 ÷ 1,596,886 = 28.55

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Trane Technologies plc EV/FCFF ratio increased from 2020 to 2021 and from 2021 to 2022.