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
The financial trajectory from 2018 to 2022 is characterized by a consistent expansion in valuation and capital structure. Enterprise value exhibited a strong upward trend, increasing from US$ 28.35 billion in 2018 to US$ 45.59 billion by the end of 2022, representing a significant growth in the total value of the business operations.
- Enterprise Value (EV) Progression
- A substantial increase in EV is observed between 2018 and 2019, where the value rose from US$ 28.35 billion to US$ 38.88 billion. A brief contraction occurred in 2020, with EV declining to US$ 36.74 billion, before resuming a steady climb through 2021 (US$ 39.36 billion) and peaking in 2022 at US$ 45.59 billion.
- Market Value and Equity Correlation
- The market value of common equity closely mirrors the total book value of equity across the five-year period. Both metrics showed a sharp increase from 2018 to 2019 and maintained a steady growth pattern thereafter. By December 31, 2022, common equity reached US$ 41.95 billion, nearly identical to the total equity figure of US$ 41.97 billion, indicating a market-to-book ratio very close to unity.
- Capitalization and Debt Trends
- Total equity and debt followed a similar growth trajectory to the enterprise value, rising from US$ 29.26 billion in 2018 to US$ 46.81 billion in 2022. The proximity between total equity and debt and the overall enterprise value suggests a stable capital structure where the net debt component remains a relatively consistent proportion of the total valuation.
Overall, the period is marked by a robust increase in the company's total valuation, with the growth in enterprise value being primarily driven by the appreciation of equity value. The temporary dip in enterprise value in 2020 was isolated and did not disrupt the long-term expansion of the firm's market and book valuations.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?