Trane Technologies plc (TT) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Construction
EV/EBITDA
↓
25.96
↑+29% vs avg
5yr avg: 20.10
30Y Low5.2·High22.7
P/FCF
↓
38.06
↑+21% vs avg
5yr avg: 31.34
30Y Low6.0·High164.2
P/B Ratio
↑
12.57
↑+44% vs avg
5yr avg: 8.73
30Y Low0.6·High11.3
ROE
↑
36.3%
↓+18% vs avg
5yr avg: 30.6%
30Y Low-36%·High59%
Debt/EBITDA
↓
1.09
↓-30% vs avg
5yr avg: 1.56
30Y Low1.1·High4.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TT Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Trane Technologies plc trades at 37.2x earnings, 26% above its 5-year average of 29.5x, sitting at the 96th percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 46%. On a free-cash-flow basis, the stock trades at 38.1x P/FCF, 21% above the 5-year average of 31.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $107.0B | $87.0B | $84.4B | $56.3B | $39.5B | $49.0B | $35.3B | $25.2B | $17.7B | $17.9B | $15.2B |
| Enterprise Value | $109.8B | $89.9B | $88.2B | $60.0B | $43.1B | $51.6B | $37.3B | $29.5B | $20.9B | $20.4B | $17.6B |
| P/E Ratio → | 37.24 | 29.98 | 32.86 | 27.81 | 22.47 | 34.42 | 41.24 | 17.87 | 13.23 | 13.70 | 10.30 |
| P/S Ratio | 5.02 | 4.08 | 4.25 | 3.18 | 2.47 | 3.46 | 2.83 | 1.93 | 1.43 | 1.26 | 1.13 |
| P/B Ratio | 12.57 | 10.12 | 11.27 | 8.02 | 6.45 | 7.78 | 5.47 | 3.43 | 2.49 | 2.46 | 2.24 |
| P/FCF | 38.06 | 30.95 | 30.40 | 26.94 | 32.57 | 35.85 | 27.38 | 15.13 | 16.98 | 13.71 | 11.56 |
| P/OCF | 33.49 | 27.24 | 26.82 | 23.55 | 26.25 | 30.82 | 24.59 | 13.13 | 12.57 | 11.72 | 10.15 |
P/E links to full P/E history page with 30-year chart
TT EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Trane Technologies plc's enterprise value stands at 26.0x EBITDA, 29% above its 5-year average of 20.1x. The Industrials sector median is 13.9x, placing the stock at a 87% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.22 | 4.44 | 3.39 | 2.70 | 3.65 | 2.99 | 2.25 | 1.69 | 1.43 | 1.30 |
| EV / EBITDA | 25.96 | 21.24 | 22.72 | 18.52 | 15.74 | 22.28 | 20.40 | 15.05 | 11.15 | 10.11 | 9.01 |
| EV / EBIT | 27.69 | 23.01 | 25.33 | 21.40 | 17.99 | 25.50 | 24.25 | 17.95 | 11.11 | 12.47 | 8.96 |
| EV / FCF | — | 31.97 | 31.77 | 28.70 | 35.56 | 37.82 | 28.92 | 17.70 | 20.04 | 15.64 | 13.35 |
TT Profitability
Margins and return-on-capital ratios measuring operating efficiency
Trane Technologies plc earns an operating margin of 18.6%, above the Industrials sector average of 4.3%. Operating margins have expanded from 16.4% to 18.6% over the past 3 years, signaling improving operational efficiency. Return on equity of 36.3% is exceptionally high — well above the sector median of 8.2%. ROIC of 26.2% represents excellent returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.2% | 36.2% | 35.7% | 33.1% | 31.0% | 31.6% | 30.5% | 30.8% | 30.5% | 30.9% | 31.1% |
| Operating Margin | 18.6% | 18.6% | 17.6% | 16.4% | 15.1% | 14.3% | 12.3% | 12.8% | 12.2% | 11.7% | 11.9% |
| Net Profit Margin | 13.7% | 13.7% | 12.9% | 11.4% | 11.0% | 10.1% | 6.9% | 10.8% | 10.8% | 9.2% | 10.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 36.3% | 36.3% | 35.4% | 30.8% | 28.3% | 22.4% | 12.4% | 19.5% | 18.6% | 18.5% | 23.2% |
| ROA | 14.0% | 14.0% | 13.0% | 10.8% | 9.7% | 7.9% | 4.4% | 7.3% | 7.4% | 7.3% | 8.6% |
| ROIC | 26.2% | 26.2% | 23.9% | 21.2% | 19.4% | 17.4% | 11.5% | 11.4% | 11.3% | 13.2% | 12.9% |
| ROCE | 27.2% | 27.2% | 25.5% | 22.5% | 18.8% | 14.9% | 10.4% | 11.4% | 11.2% | 12.3% | 11.9% |
TT Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Trane Technologies plc carries a Debt/EBITDA ratio of 1.1x, which is manageable (66% below the sector average of 3.2x). Net debt stands at $2.9B ($4.6B total debt minus $1.8B cash). Interest coverage of 17.2x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.54 | 0.54 | 0.72 | 0.68 | 0.79 | 0.77 | 0.82 | 0.76 | 0.58 | 0.56 | 0.60 |
| Debt / EBITDA | 1.09 | 1.09 | 1.39 | 1.48 | 1.77 | 2.09 | 2.89 | 2.85 | 2.18 | 2.02 | 2.09 |
| Net Debt / Equity | — | 0.33 | 0.51 | 0.53 | 0.59 | 0.43 | 0.31 | 0.58 | 0.45 | 0.35 | 0.35 |
| Net Debt / EBITDA | 0.67 | 0.67 | 0.98 | 1.14 | 1.32 | 1.16 | 1.08 | 2.18 | 1.70 | 1.25 | 1.21 |
| Debt / FCF | — | 1.01 | 1.37 | 1.76 | 2.98 | 1.97 | 1.54 | 2.56 | 3.06 | 1.93 | 1.79 |
| Interest Coverage | 17.17 | 17.17 | 14.60 | 11.95 | 10.72 | 8.67 | 6.18 | 6.76 | 8.51 | 7.57 | 8.86 |
TT Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.25x means Trane Technologies plc can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.92x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.13x to 1.25x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.25 | 1.25 | 1.21 | 1.13 | 1.12 | 1.36 | 1.59 | 1.28 | 1.33 | 1.27 | 1.55 |
| Quick Ratio | 0.92 | 0.92 | 0.88 | 0.78 | 0.77 | 1.04 | 1.32 | 0.93 | 0.94 | 0.95 | 1.17 |
| Cash Ratio | 0.28 | 0.28 | 0.26 | 0.18 | 0.21 | 0.45 | 0.76 | 0.27 | 0.21 | 0.32 | 0.48 |
| Asset Turnover | — | 1.00 | 0.98 | 0.91 | 0.88 | 0.78 | 0.69 | 0.64 | 0.69 | 0.78 | 0.78 |
| Inventory Turnover | 6.47 | 6.47 | 6.47 | 5.49 | 5.53 | 6.31 | 7.27 | 5.31 | 5.12 | 6.31 | 6.73 |
| Days Sales Outstanding | — | 55.38 | 56.86 | 70.52 | 63.45 | 62.73 | 64.54 | 60.98 | 79.22 | 63.69 | 60.06 |
TT Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Trane Technologies plc returns 2.2% to shareholders annually — split between a 0.8% dividend yield and 1.4% buyback yield. The payout ratio of 28.7% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 2.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.0% | 0.9% | 1.2% | 1.6% | 1.1% | 1.4% | 2.0% | 2.7% | 2.4% | 2.3% |
| Payout Ratio | 28.7% | 28.7% | 29.5% | 33.8% | 35.3% | 39.4% | 59.3% | 36.2% | 35.8% | 33.0% | 23.6% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.7% | 3.3% | 3.0% | 3.6% | 4.4% | 2.9% | 2.4% | 5.6% | 7.6% | 7.3% | 9.7% |
| FCF Yield | 2.6% | 3.2% | 3.3% | 3.7% | 3.1% | 2.8% | 3.7% | 6.6% | 5.9% | 7.3% | 8.6% |
| Buyback Yield | 1.4% | 1.7% | 1.5% | 1.2% | 3.0% | 2.2% | 0.7% | 3.0% | 5.1% | 5.7% | 1.6% |
| Total Shareholder Yield | 2.2% | 2.7% | 2.4% | 2.4% | 4.6% | 3.4% | 2.1% | 5.0% | 7.8% | 8.1% | 3.9% |
| Shares Outstanding | — | $224M | $228M | $231M | $235M | $242M | $243M | $244M | $250M | $258M | $262M |
Peer Comparison
Compare TT with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TTYou | $107B | 37.2 | 26.0 | 38.1 | 36.2% | 18.6% | 36.3% | 26.2% | 1.1 |
 CARR | $60B | 42.2 | 23.0 | 35.4 | 25.9% | 9.9% | 10.5% | 6.7% | 4.1 |
 JCI | $88B | 55.1 | 26.9 | 91.6 | 36.4% | 12.0% | 21.7% | 8.5% | 3.0 |
 LII | $19B | 24.0 | 18.3 | 29.0 | 33.0% | 19.5% | 78.1% | 29.8% | 1.8 |
 AAON | $11B | 106.0 | 50.2 | — | 26.7% | 10.6% | 12.5% | 9.8% | 1.9 |
 WMS | $11B | 27.0 | 14.2 | 19.8 | 36.3% | 22.5% | 23.7% | 16.8% | 2.0 |
 EMR | $84B | 37.3 | 19.1 | 31.6 | 52.8% | 19.6% | 9.6% | 8.2% | 2.7 |
 HON | $145B | 31.1 | 21.0 | 26.9 | 36.9% | 17.5% | 27.3% | 12.6% | 4.3 |
 ROK | $53B | 61.8 | 32.3 | 39.2 | 48.1% | 17.1% | 23.5% | 15.1% | 2.1 |
 AME | $54B | 37.1 | 29.9 | 32.5 | 36.4% | 26.2% | 14.6% | 12.1% | 1.2 |
 RBC | $20B | 70.3 | 50.2 | 59.0 | 44.4% | 22.5% | 9.0% | 7.6% | 2.4 |
| Industrials Median | — | 25.6 | 13.9 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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TT — Frequently Asked Questions
Quick answers to the most common questions about buying TT stock.
What is Trane Technologies plc's P/E ratio?
Trane Technologies plc's current P/E ratio is 37.2x. The historical average is 17.8x. This places it at the 96th percentile of its historical range.
What is Trane Technologies plc's EV/EBITDA?
Trane Technologies plc's current EV/EBITDA is 26.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.1x.
What is Trane Technologies plc's ROE?
Trane Technologies plc's return on equity (ROE) is 36.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.5%.
Is TT stock overvalued?
Based on historical data, Trane Technologies plc is trading at a P/E of 37.2x. This is at the 96th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Trane Technologies plc's dividend yield?
Trane Technologies plc's current dividend yield is 0.77% with a payout ratio of 28.7%.
What are Trane Technologies plc's profit margins?
Trane Technologies plc has 36.2% gross margin and 18.6% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Trane Technologies plc have?
Trane Technologies plc's Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.