Enterprise Value (EV)
Current Enterprise Value (EV)
Trane Technologies plc, current enterprise value calculation
| Current share price (P) | $177.74 |
| No. shares of common stock outstanding | 228,051,842 |
| US$ in thousands | |
| Common equity (market value)1 | 40,533,934) |
| Add: Noncontrolling interest (per books) | 16,600) |
| Total equity | 40,550,534) |
| Add: Short-term borrowings and current maturities of long-term debt (per books) | 1,048,000) |
| Add: Long-term debt,excluding current maturities (per books) | 3,788,300) |
| Total equity and debt | 45,386,834) |
| Less: Cash and cash equivalents | 1,220,500) |
| Enterprise value (EV) | 44,166,334) |
Based on: 10-K (reporting date: 2022-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 177.74 × 228,051,842
Historical Enterprise Value (EV)
Trane Technologies plc, EV calculation
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).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Trane Technologies plc Annual Report.
3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 183.14 × 229,074,725
- Equity Trends
- Both common equity at market value and total equity exhibited a general upward trend over the five-year period. Common equity increased from approximately 25.1 billion USD at the end of 2018 to around 41.95 billion USD by the end of 2022. Total equity followed a very similar pattern, growing from about 25.17 billion USD to roughly 41.97 billion USD during the same timeframe. This consistent growth reflects strengthening shareholder investment and retained earnings over the period analyzed.
- Total Equity and Debt
- The combined measure of total equity and debt also showed growth, rising from approximately 29.26 billion USD at the end of 2018 to about 46.81 billion USD by the end of 2022. This indicates an expansion in the overall financial base of the company, including increases in liabilities along with equity. Notably, there was a more significant jump in this figure between 2018 and 2019 as compared to subsequent years, suggesting an acceleration in debt or equity financing during that interval.
- Enterprise Value (EV)
- Enterprise value displayed an overall increasing trend, albeit with some fluctuations. Starting at around 28.35 billion USD at the end of 2018, EV climbed to nearly 38.88 billion USD in 2019, followed by a decrease to approximately 36.74 billion USD in 2020. It then rose consistently in the following years, reaching about 45.59 billion USD by the end of 2022. The dip in 2020 likely reflects external economic challenges, while the growth before and after indicates strengthening market valuation and operating performance.
- Summary of Financial Position
- Across the period from 2018 to 2022, the company demonstrated a positive trajectory in equity and enterprise value, signifying improved market capitalization and financial structure. The rise in total equity and debt indicates augmented capitalization and possibly increased leverage. These patterns suggest the company has been expanding its financial resources in a structured manner, albeit with some sensitivity to market conditions as observed in the 2020 enterprise value dip.