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DCF Valuation
Base-case fair value
$467.39
Intrinsic $623.19 · 25% MOS
Current price: $448.47
Base-case summary
Our base-case DCF for Trane Technologies plc (TT) projects 10 years of free cash flow growth at 18.1% for years 1–5 and 9.1% for years 6–10, anchored to 18.1% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $3.1B in trailing free cash flow, this produces an intrinsic value of $623.19 per share. A 25% safety margin gives a fair value of $467.39, suggesting the stock is currently 4% undervalued against the $448.47 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$3.1B
Cash & equivalents
$1.8B
Total debt
$4.6B
Shares outstanding
223M