Ingersoll Rand Inc. (IR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-42.8%

$47.87

vs $83.65 price

Levered DCF

$58.38

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.52

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	54.26×	43.49×	40.28×	34.83×	45.49×	-538.53×	47.03×	15.26×
P/B	3.13×	3.58×	3.2×	2.3×	2.85×	1.91×	3.99×	2.46×
P/S	4.12×	5.04×	4.55×	3.58×	4.98×	4.39×	3.7×	1.53×
EV / EBITDA	22.41×	21.84×	19.72×	17.49×	26.43×	41.06×	24.88×	8.85×
Gross margin	38.5%	43.8%	41.9%	39.3%	38.6%	35.4%	38.6%	37.6%
Operating margin	18.5%	18.0%	16.9%	13.8%	11.0%	1.5%	9.6%	16.5%
Net margin	7.6%	11.6%	11.3%	10.2%	10.9%	-0.8%	7.9%	10.0%
Current ratio	2.06×	2.29×	2.22×	2.37×	2.8×	2.58×	2.69×	2.23×
Debt / equity	0.48×	0.49×	0.28×	0.3×	0.39×	0.43×	0.87×	1×
Interest coverage	5.58×	6.1×	7.43×	7.92×	6.45×	0.54×	2.2×	4.45×
Dividend yield	0.1%	0.1%	0.1%	0.2%	0.0%	1.2%	5.8%	9.6%
Payout ratio	5.5%	3.9%	4.2%	5.4%	1.5%	-609.3%	271.2%	146.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	5.8%	8.2%	8.0%	6.6%	6.2%	-0.4%	8.5%	16.1%
Return on invested capital	6.3%	6.1%	6.5%	5.0%	4.1%	0.4%	3.6%	8.8%
Return on assets	3.2%	4.7%	5.0%	4.1%	3.7%	-0.2%	3.4%	6.0%
Free cash flow yield	3.9%	3.4%	4.1%	3.6%	2.1%	5.0%	4.0%	9.5%
Earnings yield	1.8%	2.3%	2.5%	2.9%	2.2%	-0.2%	2.1%	6.5%
Enterprise value	$35.1B	$39.9B	$32.5B	$22.4B	$27B	$19.6B	$8.6B	$5.6B
Net debt / EBITDA	2.3×	1.88×	0.71×	0.92×	1.34×	4.59×	3.25×	2.3×
Cash conversion cycle (days)	86	86	84	94	88	105	136	111