Ingersoll Rand Inc. (IR) DCF Valuation
TGM's two-stage DCF values Ingersoll Rand Inc. (IR) between $32.29 and $60.31 depending on assumptions, with a base case of $43.93. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (10%) reflects its beta.
What would today's price require?
$81.37 is justified only if free cash flow grows about +21.2% a year (fading to 2.5% long-run) at a 10% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 4.6%/yr | 11.0% | $32.29 |
| Base case | 7.6%/yr | 10.0% | $43.93 |
| Optimistic | 10.6%/yr | 9.0% | $60.31 |
| Analyst DCF (FMP) | independent reference — different model | $51.27 | |
Current Price
$81.37
Market-Implied Growth
+21.2%/yr
vs +4.9% 5Y actual
Model Scenario Range
$32.29 – $60.31
model output — not a price target
IR DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for IR (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.2B · 0.39B shares · net debt $3.5B
Estimated Fair Value
$53.51
-34.2% vs $81.37
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 7.6%/yr FCF growth and 10-year horizon fixed. Green = above today's $81.37; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $69.30 | $73.51 | $78.48 | $84.44 | $91.73 |
| 9.0% | $57.85 | $60.72 | $64.04 | $67.91 | $72.49 |
| 10.0% | $49.14 | $51.19 | $53.51 | $56.16 | $59.21 |
| 11.0% | $42.32 | $43.82 | $45.50 | $47.38 | $49.52 |
| 12.0% | $36.84 | $37.96 | $39.21 | $40.59 | $42.14 |
About Ingersoll Rand Inc.
Ingersoll Rand Inc., established in 1859 and headquartered in Davidson, North Carolina, delivers essential air, fluid, energy, medical, and specialized vehicle technologies to customers across the United States, Europe, the Middle East, Africa, and the Asia Pacific regions. The company operates through two primary divisions: Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services division is responsible for the design, production, sales, and maintenance of various air and gas compression, vacuum, and blower solutions, alongside fluid handling and loading systems, power tools, and lifting apparatus. This segment also encompasses all related spare parts, consumables, air purification systems, controls, additional accessories, and support services. Meanwhile, the Precision and Science Technologies segment focuses on designing, manufacturing, and marketing a range of highly specialized positive displacement pumps, advanced fluid management systems, and their associated accessories and aftermarket parts. These solutions are critical for precise liquid and gas operations such as dosing, transfer, dispensing, compression, sampling, pressure regulation, and flow control in demanding or niche environments. Its diverse product portfolio serves a wide array of sectors, including healthcare, scientific research, industrial production, water treatment, chemical processing, advanced irrigation, energy, food and drink, agriculture, and applications involving vacuum and automated fluid handling within manufacturing and industrial settings. Ingersoll Rand distributes its offerings via both its own sales force and a network of independent partners, under numerous well-known brands such as Ingersoll Rand, Gardner Denver, Club Car, CompAir, Nash, Milton Roy, and many others. The company adopted its current name, Ingersoll Rand Inc., in March 2020, having previously been known as Gardner Denver Holdings, Inc.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Vicente Reynal