Is Ingersoll Rand Inc. (IR) Fairly Valued?
Ingersoll Rand Inc. valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of July 8, 2026.
By TGMCharts Research · Data as of · Updated
Ingersoll Rand Inc. trading at 51.83x trailing earnings requires a detailed fundamental assessment. With an analyst DCF (FMP) reference of $51.46, assessing whether long-term expansion supports this market pricing is critical.
Evaluating the stock involves examining historical performance and profitability structures. Long-term trends show a five-year revenue CAGR of 10.25% alongside a five-year EPS CAGR of 11.01%, while the business operates with a net margin of 7.54%. These metrics help clarify whether the current pricing structure is supported by business fundamentals.
- Ingersoll Rand Inc. closed at $77.05 on July 8, 2026.
- Trailing P/E is 51.83x and price-to-sales is 3.86x.
- Analyst DCF (FMP) is $51.46 with margin of safety at -32.92%.
- Five-year revenue CAGR is 10.25% and five-year EPS CAGR is 11.01%.
- Earnings yield is 1.93% and net margin is 7.54%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Evaluating the Market Premium and Fundamental Support
When analyzing the market pricing of Ingersoll Rand Inc., the central analytical task is to determine if the underlying business performance justifies its premium valuation. As of July 8, 2026, the equity closed at $77.05, translating to a trailing price-to-earnings multiple of 51.83x. This premium multiple sits alongside an independent analyst-DCF (FMP) reference value that implies a negative margin of safety of -32.92%, highlighting the high expectations embedded in the current market price.
A comprehensive assessment of this valuation cannot rely on a single ratio. Instead, we must evaluate the relationship between the company's trading multiples, long-term growth trends, and operational profitability. This research note weighs these variables to assess whether the current market valuation is structurally supported by fundamental performance or if it is heavily reliant on optimistic expansion assumptions.
Trailing Multiples and the Cost of Equity Ownership
To understand what the market is paying for the company's cash generation, we look at sales and earnings yields in tandem. The stock currently trades at a price-to-sales ratio of 3.86x, which corresponds to a trailing earnings yield of 1.93%. This thin yield underscores the premium that investors are paying for each dollar of profitability, making it essential to analyze historical trend lines rather than looking at the trailing price-to-earnings ratio in isolation.
IR P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 51.83x as of July 8, 2026.
A P/E ratio of 51.83x has to be judged against the company's five-year EPS CAGR of 11.01%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
IR price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 3.86x.
Price-to-sales at 3.86x is most useful beside net margin of 7.54%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Comparing Market Pricing to Independent DCF Reference Points
The independent analyst-DCF (FMP) model establishes a reference value of $51.46, indicating that the market price is above the analyst DCF (FMP) reference. This negative margin of safety of -32.92% suggests that the current market price exceeds conventional discounted cash flow estimates. This third-party benchmark serves as a useful point of comparison, though investors should also consult the dedicated valuation tools on the platform to explore alternative cash flow scenarios.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
IR earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 1.93%.
The earnings yield of 1.93% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Assessing Long Term Top and Bottom Line Momentum
For a valuation multiple of this magnitude to remain stable, the underlying business must demonstrate robust, long-term expansion. Over the past five years, the company has delivered a revenue CAGR of 10.25% and a five-year EPS CAGR of 11.01%. However, near-term trends reveal a divergence: while trailing twelve-month revenue growth remains positive, trailing twelve-month EPS, net income, and free cash flow have all declined. This near-term contraction in cash generation raises questions about whether current growth can support the elevated trading multiple.
IR revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 10.25%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 10.25% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
IR EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: 11.01%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of 11.01% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Profitability Quality and Sales Multiple Alignment
The defensibility of a high sales multiple depends heavily on the quality and durability of operational margins. The company currently generates a net margin of 7.54% against its price-to-sales ratio of 3.86x. If these margins represent a cyclical peak, any reversion to historical averages would put downward pressure on earnings, making the current valuation multiples significantly more difficult to sustain.
IR net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin (TTM): 7.54%. The bars below are annual fiscal years.
Net margin of 7.54% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
The Tension Between Historical Growth and Near Term Pressure
The positive case for the current valuation rests on the company's long-term compounding record, characterized by a five-year revenue CAGR of 10.25% and a net margin of 7.54%. Conversely, the negative case highlights that the market is paying a premium multiple of 51.83x at a time when trailing twelve-month net income, EPS, and free cash flow are falling, creating a disconnect between the stock's price and its immediate financial trajectory.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 10.25% and five-year EPS CAGR of 11.01% support the business case.
- Net margin of 7.54% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 51.83x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at -32.92% should change the valuation read if it deteriorates after refresh.
Key Metrics to Monitor for a Valuation Shift
Several factors could alter this valuation perspective. A significant shift in the stock price relative to the analyst-DCF (FMP) reference of $51.46 would directly impact the margin of safety. Additionally, any further deterioration in trailing twelve-month earnings or a breakdown in the five-year EPS CAGR of 11.01% would signal that the business is struggling to support its premium multiple, requiring a more cautious analytical stance.
Synthesizing the Fundamental Valuation Outlook
In conclusion, evaluating the valuation of Ingersoll Rand Inc. requires balancing its strong five-year historical growth against recent declines in trailing twelve-month profitability and cash flow. To sustain its current market multiple, the business must stabilize its near-term earnings performance and maintain its net margin of 7.54%. This analysis relies entirely on reported financial data and does not constitute personalized investment advice or a transactional recommendation.
FAQ
Is IR fairly valued?
Ingersoll Rand Inc. trades at 51.83x trailing earnings with an analyst-DCF (FMP) margin of safety of -32.92%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 10.25% and five-year EPS CAGR of 11.01%.
What valuation metric matters most for IR?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this IR valuation view refresh?
We refresh this note after each daily market close, so the price, fair value, and every figure stay current. Numbers here are as of July 8, 2026.
What would change our mind
- A material move away from the analyst-DCF (FMP) reference of $51.46.
- A break in five-year EPS support, currently 11.01%.
- Margin quality drifting away from the latest net margin of 7.54%.
The bottom line
Ingersoll Rand Inc. valuation research note from TGMCharts Research, grounded in precomputed fundamentals, chart exhibits, and a frozen claim ledger.
Read next: IR fundamentalsContinue with Ingersoll Rand Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-04-29 · period 2026-03-31 · SEC EDGAR source
- “Segment Adjusted EBITDA Margin decreased 210 basis points to 26.7% from 28.8% in 2025.”
- “Segment Adjusted EBITDA Margin increased 120 basis points to 30.3% from 29.1% in 2025.”
- “In addition to our consolidated GAAP financial measures, we review various non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income and Free Cash Flow.”
- “We believe Adjusted EBITDA and Adjusted Net Income are helpful supplemental measures to assist us and investors in evaluating our operating results as they exclude certain items whose fluctuation from period to period do not necessarily correspond to changes in the operations of our business.”
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Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.