Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Analysis of Debt
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Historical Valuation Ratios (Summary)
Trane Technologies plc, historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The analysis of the quarterly financial ratios over the given period reveals several notable trends and shifts in valuation metrics.
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited a generally increasing trend from early 2019 through late 2020, rising from around 20.77 to a peak exceeding 40 in the fourth quarter of 2020. This indicates a growing market expectation of future earnings or a higher valuation relative to earnings during this period. Following this peak, the P/E ratio showed a declining pattern throughout 2021, falling to about 25.75 by the end of that year. During 2022 and into early 2023, the ratio stabilized somewhat, fluctuating in the low to mid-20s, suggesting more tempered growth expectations or normalized earnings valuations.
- Price to Operating Profit (P/OP) Ratio
- Similar to the P/E trend, the P/OP ratio increased steadily from about 14.77 in early 2019 to a high of approximately 22.67 in late 2020. This reflects elevated valuations relative to operating profit during this period. The ratio peaked slightly higher in early to mid-2021, reaching nearly 25, before gradually retreating throughout the remainder of 2021 and 2022. By early 2023, the ratio had declined to around 16.3, demonstrating a return toward more conservative valuations against operating profit, possibly due to either increased operating profits or less optimistic market perceptions.
- Price to Sales (P/S) Ratio
- The P/S ratio showed a moderate rise over the period, starting at about 1.86 in early 2019 and climbing steadily to a peak above 3.5 during mid-2021. This indicates that the market progressively assigned greater value to each unit of sales, likely reflecting expected revenue growth or improved sales quality. Post mid-2021, the ratio declined somewhat and then held relatively steady around 2.3 to 2.6 through 2022 and into early 2023, which may suggest either sales growth catching up with price appreciation or adjustments in market valuation levels.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio revealed a consistent rising pattern, starting at a little over 4.2 in early 2019 and escalating to a peak close to 7.37 by mid-2021. This increasing trend signifies that the market valued the company’s equity at progressively higher multiples of its book value, possibly anticipating stronger asset utilization or growth prospects. Despite some minor fluctuations, the ratio remained elevated around 6 to 7 through 2022 and early 2023, indicating sustained confidence in the underlying equity value relative to book value.
Overall, the valuation multiples generally increased substantially from 2019 through 2020 and into 2021, signaling a period of strong market optimism and growth expectations. Following the peaks in late 2020 to mid-2021, the multiples experienced various degrees of correction or stabilization, reflecting potentially more cautious investor sentiment, normalization of earnings and profit growth, or adjustments in market conditions. The P/BV ratio’s persistent elevation suggests enduring confidence in the company’s asset base and long-term value.
Price to Earnings (P/E)
Trane Technologies plc, historical P/E calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net earnings (loss) attributable to Trane Technologies plc (in thousands) | |||||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
EPS
= (Net earnings (loss) attributable to Trane Technologies plcQ1 2023
+ Net earnings (loss) attributable to Trane Technologies plcQ4 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ3 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ2 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Trane Technologies plc Quarterly or Annual Report.
4 Q1 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The analyzed financial data reflects significant movements in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the period from March 2019 to March 2023.
- Share Price
- The share price experienced considerable fluctuations. Initially, it showed an upward trend from approximately $122.05 in March 2019 to a peak near $145 by the end of 2019. However, a sharp decline occurred in early 2020, hitting a trough around $82.16 in March 2020, likely influenced by external market factors.
- Following this decline, the share price demonstrated a recovery and upward trajectory throughout 2020 and 2021, reaching a high point near $200.28 in June 2021. Thereafter, a moderate downtrend is observed toward the end of 2021 and into 2022, with a subsequent rebound in late 2022 peaking around $183.14 in December 2022, before slightly decreasing to $177.74 by March 2023.
- Earnings per Share (EPS)
- EPS exhibited relative stability in 2019, hovering around the mid-to-high $5 range. A notable decrease occurred in early 2020, aligning with the share price drop, descending to a low approximately $3.59 by December 2020.
- From 2021 onwards, EPS showed a steady and continuous increase, indicating improving profitability, reaching a level close to $7.91 by the end of the observed period in March 2023. This suggests a positive trend in earnings despite some volatility in market pricing.
- Price-to-Earnings Ratio (P/E)
- The P/E ratio exhibited more volatility relative to share price and EPS. It initially ranged from around 20.77 to 24.5 during 2019, signifying moderate investor valuation levels.
- Following the EPS and share price changes in 2020, the P/E ratio spiked sharply, peaking above 40 in late 2020. This peak reflects a period where price valuation was high relative to earnings, possibly indicating market uncertainties or changing investor sentiment.
- Subsequently, the P/E ratio steadily declined toward mid-2021, stabilizing in the low-to-mid 20s by early 2022 and maintaining this range through to March 2023. This stabilization suggests a rebalancing of market expectations in line with earnings performance.
Price to Operating Profit (P/OP)
Trane Technologies plc, historical P/OP calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Operating income (in thousands) | |||||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
Operating profit per share
= (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Trane Technologies plc Quarterly or Annual Report.
4 Q1 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited notable fluctuations over the observed periods. Initially, there was a moderate increase from $122.05 to $144.97 between March 2019 and December 2019. A sharp decline followed in the first quarter of 2020, falling to $82.16, likely influenced by external market conditions. Subsequently, share prices demonstrated a recovery trajectory, ascending steadily to reach a peak of $200.28 in June 2021. Following this peak, prices declined moderately, before stabilizing around the range of $141 to $183 in the latest quarters, with a value of $177.74 observed in March 2023.
- Operating Profit per Share (OP) Trends
- Operating profit per share showed a generally positive trend with some variability. From March 2019 to December 2019, the OP per share was relatively stable, averaging around $8.4. A decrease was observed during 2020, with the lowest figure of $6.43 recorded in December 2020, reflecting possible operational impacts during that period. Beginning in 2021, a consistent upward trajectory resumed, culminating in $10.91 in March 2023. This indicates a strengthening in operational profitability over the later periods.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio exhibited substantial volatility across the periods. From early 2019 through late 2019, ratios ranged between approximately 14.2 and 17.1, showing moderate market valuation relative to operating earnings. In the first half of 2020, the ratio fluctuated significantly, reaching a low of 10.6 in March 2020, coinciding with the share price drop and reduced operating profit per share. Thereafter, the ratio elevated sharply, peaking at 24.68 in March 2021, likely reflecting strong share price appreciation outpacing OP growth. The ratio then gradually declined, stabilizing in the mid-teens during 2022 and early 2023, suggesting a more balanced valuation between market price and operating profit levels in recent quarters.
- Overall Insights
- The data reveals that the company experienced a challenging period in early 2020, as evidenced by reductions in share price and operating profit per share. However, the subsequent recovery period saw both metrics improve substantially, with the share price and operating profitability reaching levels surpassing those before the downturn. The fluctuations in the price to operating profit ratio suggest that market sentiment and valuation multiples varied considerably, reflecting changing investor perceptions of earnings quality and future prospects. In the most recent periods, the company’s operational strength appears reinforced, with profitability at its highest levels, while market valuation ratios have moderated to more sustainable levels.
Price to Sales (P/S)
Trane Technologies plc, historical P/S calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net revenues (in thousands) | |||||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
Sales per share
= (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Trane Technologies plc Quarterly or Annual Report.
4 Q1 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The financial analysis reveals several noteworthy trends in key metrics over the examined periods.
- Share Price
- The share price showed a general upward trend from March 2019 through December 2019, rising from approximately $122.05 to a peak near $144.97. This was followed by a sharp decline in March 2020 to about $82.16, likely reflecting broader market disruptions. Subsequently, the price recovered steadily, achieving a high point of $200.28 in June 2021 before undergoing moderate fluctuations. Despite some decreases towards the end of 2021 and into early 2022, the share price rebounded again, reaching around $183.14 by December 2022, with a slight dip to $177.74 as of March 2023.
- Sales Per Share
- Sales per share remained relatively stable during 2019 at levels between $65.76 and $69.63. However, starting in the first quarter of 2020, the metric declined noticeably, reaching a low near $52.24 by the end of 2020. Beginning in 2021, sales per share exhibited a recovery trend, gradually increasing each quarter to $71.48 by March 2023, surpassing prior peak levels observed in 2019.
- Price-to-Sales (P/S) Ratio
- The P/S ratio fluctuated significantly over the period. It remained below 2.10 throughout 2019 but dropped to a low of 1.25 in the first quarter of 2020, aligning with the share price decline. A rapid ascent followed, with the P/S ratio reaching a peak of 3.52 in June 2021, reflecting the disproportionate recovery of share price relative to sales per share. Subsequently, the ratio decreased and stabilized in the range of approximately 2.28 to 2.62 through late 2022 and early 2023, suggesting a more balanced valuation relative to sales in recent periods.
In summary, the data indicate a significant market impact beginning in early 2020, with subsequent recovery phases for both share price and sales per share. The P/S ratio’s volatility underscores shifts in market valuation relative to revenue generation, with valuations peaking mid-2021 before normalizing. Overall, recent quarters suggest modest growth in sales alongside stabilized but somewhat lower valuation multiples compared to peak levels.
Price to Book Value (P/BV)
Trane Technologies plc, historical P/BV calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Total Trane Technologies plc shareholders’ equity (in thousands) | |||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
BVPS = Total Trane Technologies plc shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Trane Technologies plc Quarterly or Annual Report.
4 Q1 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in the company's market valuation and book value over the period.
- Share Price
- The share price demonstrated volatility over the analyzed quarters. Initially, there was a gradual increase from $122.05 to a peak of $144.97 by the end of 2019. This was followed by a significant decline in early 2020, with the price dropping sharply to $82.16 in March 2020, likely reflecting broader market conditions. Subsequently, the share price recovered steadily through the remainder of 2020 into 2021, reaching a high of $200.28 in June 2021. After peaking, the price experienced some correction, fluctuating between $141.21 and $183.14 through 2022 and early 2023, ending at $177.74 in March 2023.
- Book Value per Share (BVPS)
- Book value per share showed relative stability with modest fluctuations. Starting at $28.55 in March 2019, BVPS increased slightly to around $30.48 by the end of 2019. A noticeable decline occurred in early 2020 down to $24.13, coinciding with the share price drop. Post-2020, BVPS slowly recovered and stabilized between approximately $24.70 and $27.26, ending at $26.47 in March 2023. The changes in BVPS were less volatile than those in the share price.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio reflected the combined movements of share price and book value per share. It began at 4.27 in early 2019, rising to 4.76 by the end of that year. The ratio declined markedly in March 2020 to 3.40, mirroring the drop in share price and book value. Subsequently, the P/BV ratio increased steadily, peaking at 7.37 in June 2021, illustrating heightened market valuation relative to book value during that period. Following this peak, the ratio trended downward yet remained elevated, fluctuating between 5.51 and 6.89 through 2022 and early 2023, and settling at 6.72 by March 2023.
Overall, the data suggests that the company experienced a significant market valuation dip in early 2020 with a subsequent recovery and upward trend through mid-2021. The book value per share was more stable but did experience a downturn in early 2020 with a gradual recovery thereafter. The elevated P/BV ratio in the latter periods indicates increased market confidence and a premium valuation over the company's book value relative to earlier years.