What is Trane Technologies plc (TT) DCF Fair Value and Intrinsic Value in 2026?

Trane Technologies plc (TT) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Trane Technologies plc's historical Return on Invested Capital (ROIC) and Moat Rating?

Trane Technologies plc operates in the Industrials sector (Building Products & Equipment) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Trane Technologies plc's financial health rating and Piotroski F-Score?

Trane Technologies plc's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Trane Technologies plc (TT) for quarterly SEC filing thesis breaks?

LocalAlpha audits Trane Technologies plc's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksTT

TT

Trane Technologies plcIndustrials / Building Products & EquipmentINTACT

Trane Technologies plc designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, and custom and transport refrigeration. It offers air conditioners, exchangers, and handlers; airside and terminal devices; air sourced heat pumps; chillers; coils and condensers; auxiliary power, cold storage, and condensing units; controls contracting and commissioning, decarbonization programs, and gensets; dehumidifiers; energy and water efficiency programs; energy recovery ventilators and power solutions; energy storage; furnaces; home automation; humidifiers; HVAC performance-monitoring products; and indoor air quality assessments and related products for HVAC and transport solutions. The company also provides asset management, building management, bus air purification, bus and rail HVAC, container refrigeration, control, ductless, geothermal, data center and multi-pipe HVAC, package heating and cooling, rail refrigeration, residential air filtration, self and vehicle powered truck refrigeration, temporary heating and cooling, truck refrigeration, unitary, variable refrigerant flow, and trailer refrigeration systems. In addition, it offers industrial process refrigeration, installation contracting, lighting retrofit, medical grade refrigeration, refrigerant reclamation, renewable energy and storage, residential hybrid heating, telematics, thermostats/controls and associated digital, ventilation, and stationary cold storage solutions; packaged rooftop units; rate chambers; residential air filters; thermal energy storage; transport heater products; temperature freezers; energy infrastructure programs and management, repair and maintenance, smart and AI-enabled, and rental services; water source heat pumps; and aftermarket and OEM parts and supplies. The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in March 2020. The company was founded in 1885 and is headquartered in Swords, Ireland.

Share Price

$443.02

52W: $348.06 - $505.87

DCF Fair Value

$308.67

-43.5% Premium

Thesis Hub

P/E (TTM)

33x

ROIC

14.5%

Operating Margin

19.3%

FCF Yield

3.2%

Debt / Equity

0.53x

Piotroski Score

8/9

Altman Z-Score

3.24

Market Cap

$97.5B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($308.67)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$308.67

MOS Buy Target (-25%)

$231.50

Valuation Overlays: DCF Fair Value ($308.67) 25% MOS Buy Target ($231.50) Revised Graham ($282.73) Graham Number ($108.67)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$443.02

DCF Fair Value

$309.15

-43.3% Premium

Starting Free Cash Flow ($M)$3,122M

$100M$3,122M (Reported)$50,000M

Stage 1 Growth (Years 1-5)9.7%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$3,300M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$30.1B

PV of Terminal Value

$41.2B

Implied Enterprise Value

$71.3B

Implied Equity Value

$68.0B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$3,425	$3,757	$4,121	$4,521	$4,960	$5,183	$5,416	$5,660	$5,915	$6,181
Present Value (PV)	$3,142	$3,162	$3,183	$3,203	$3,224	$3,090	$2,963	$2,841	$2,723	$2,611

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-307.7% Premium

$108.67

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $13.41BVPS: $39.14

Revised Graham Formula-56.7% Premium

$282.73

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings3% Yield

$13.48 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $3.0BYield: 3%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

11.5% CAGR (Next 10 Yrs)

At the current price of $443.02, the market is assuming the business will compound Free Cash Flow at 11.5% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil TT with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Trane Technologies plc. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 19.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Trane Technologies plc (TT) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Trane Technologies plc.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Trane Technologies plc has an estimated DCF intrinsic fair value of $308.67 per share compared to its current market price of $443.02. This represents an estimated 43.5% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $108.67.