Trane Technologies
FAIR PRICE VALUATION
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$499.43
FAIR PRICE
$297.98
MARGIN
$201.45
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FPI RATING
High-quality fundamentals and low debt levels, but expensive valuation relative to fundamentals.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$238.38
Fair price × 0.80
DISTANCE
52.3%
Price to entry level
At the current price of $499.43, TT trades 52.3% above the conservative entry level of $238.38. This entry level represents a 20% margin of safety below the calculated fair price of $297.98 — a buffer that accounts for estimation uncertainty in the valuation model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
VALUATION HISTORY
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P/E RATIO HISTORY
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METHODOLOGY
How we calculate TT's fair price
Trane Technologies's fair price of $297.98 is derived from a blended model that combines DCF analysis (50%), relative valuation against Industrials peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $499.43, TT trades 40.3% above its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting TT's risk profile.
RELATIVE · 30%
Comparing TT's valuation multiples against Industrials peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for TT, weighted by recency and analyst accuracy.
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Want to test your own assumptions? Use our free calculators to estimate TT's fair value with your own inputs.
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What is the fair price of TT?+
Based on our blended model combining DCF analysis (50%), relative valuation against Industrials peers (30%), and analyst consensus (20%), the fair price for Trane Technologies is $297.98. At the current market price of $499.43, TT trades 40.3% above its calculated fair value.
Is TT overvalued or undervalued?+
Trane Technologies is currently overvalued based on our valuation model. The stock trades at $499.43, which is 40.3% above the fair price of $297.98. The P/E ratio of 36.9x is a key metric in the valuation.
What is the margin of safety for TT?+
With a 20% margin of safety applied to the fair price of $297.98, the conservative entry level for TT is $238.38. At the current market price of $499.43, the stock trades 52.3% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is TT's fair price updated?+
We update fair price calculations for TT daily after market close. The current fair price of $297.98 incorporates the latest market data and sector multiples.
What factors affect TT's fair price calculation?+
TT's fair price of $297.98 is derived from DCF analysis (50% weight), relative valuation against Industrials peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 36.9x, ROE of 36.2%, and dividend yield of 1.03%.
Is TT a good buy right now?+
At $499.43, TT trades 40.3% above our fair value estimate of $297.98. The stock is currently overvalued. ROE stands at 36.2% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.
Does TT pay dividends?+
TT has a dividend yield of 1.03%.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.