Ingersoll Rand Inc.

IndustrialsIndustrial - MachineryNYSE

$75.75

Market Cap: $29.64B

Ingersoll Rand Inc. (IR) Valuation Summary

Updated May 9, 2026 06:01

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$43.67 – $148.01	$68.30	-9.8%
Growth Exit 10Y	$55.39 – $180.23	$85.11	+12.4%
EBITDA Exit 5Y	$69.78 – $125.45	$95.39	+25.9%
EBITDA Exit 10Y	$75.79 – $148.29	$107.00	+41.2%
▸ Trading Multiples
P/E	$40.24 – $50.71	$67.07	-11.5%
EV/EBITDA	$72.80 – $91.45	$78.42	+3.5%
EV/Revenue	$65.93 – $96.23	$87.02	+14.9%
▸ PEG
PEG Fair Value	$87.80 – $87.80	$87.80	+15.9%
▸ Earnings Power Value
Earnings Power Value	$29.64 – $46.96	$36.71	-51.5%
▸ Dividend Discount
Dividend Discount	$1.49 – $3.19	$2.15	-97.2%

Valuation History

DCF Analysis

Fair Value

$68.30

Market Price

$75.75

Upside / Downside

-9.8%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Ingersoll Rand Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.8% to 10.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 68, DPO 77, DIO 96). At a 8.2% WACC with mid-year discounting, the terminal value (77% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $68.30 per share, suggesting IR is fairly valued by 9.8% at the current price of $75.75.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	1,820	1,900	1,980	2,134	2,356	2,415
(−) Net Interest	190	199	207	223	246	253
(+) D&A	110	123	131	139	139	143
EBITDA	2,120	2,221	2,319	2,496	2,742	2,810

(−) Tax	328	342	357	384	424	435
(−) CapEx	130	136	142	153	169	173
(−) ΔWC	30	75	77	146	210	215
Free Cash Flow (FCFF)	1,632	1,668	1,744	1,813	1,939	1,987

Terminal Value						35,087
WACC / Discount Rate	8.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	1,569	1,483	1,433	1,378	1,362	23,700

Enterprise Value	30,924
Projection Period	7,224	23.4%
Terminal Value	23,700	76.6%

(−) Current Net Debt	3,536

Equity Value	27,388
(/) Outstanding Shares	401

Fair Price	$68.30

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.2%	$89	$98	$110	$126	$148
7.2%	$72	$78	$85	$94	$105
8.2%	$59	$64	$68	$74	$81
9.2%	$51	$53	$57	$61	$65
10.2%	$44	$46	$48	$51	$54

Current price: $75.75. Green = undervalued, Red = overvalued.

Fair Value

$85.11

Market Price

$75.75

Upside / Downside

+12.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Ingersoll Rand Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.8% to 4.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 68, DPO 77, DIO 96). At a 8.2% WACC with mid-year discounting, the terminal value (62% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $85.11 per share, suggesting IR is fairly valued by 12.4% at the current price of $75.75.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	1,820	1,900	1,980	2,134	2,356	2,572	2,776	2,961	3,123	3,255	3,337
(−) Net Interest	190	199	207	223	246	269	290	310	327	341	349
(+) D&A	110	123	131	139	139	146	157	169	183	197	202
EBITDA	2,120	2,221	2,319	2,496	2,742	2,987	3,223	3,440	3,633	3,793	3,888

(−) Tax	328	342	357	384	424	463	500	533	562	586	601
(−) CapEx	130	136	142	153	169	184	199	212	224	233	239
(−) ΔWC	30	75	77	146	210	205	193	176	153	125	128
Free Cash Flow (FCFF)	1,632	1,668	1,744	1,813	1,939	2,135	2,331	2,519	2,694	2,849	2,920

Terminal Value											51,559
WACC / Discount Rate	8.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	1,569	1,483	1,433	1,378	1,362	1,387	1,400	1,398	1,383	1,352	23,524

Enterprise Value	37,667
Projection Period	14,143	37.5%
Terminal Value	23,524	62.5%

(−) Current Net Debt	3,536

Equity Value	34,131
(/) Outstanding Shares	401

Fair Price	$85.11

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.2%	$116	$126	$139	$156	$180
7.2%	$92	$99	$106	$116	$128
8.2%	$76	$80	$85	$91	$98
9.2%	$64	$67	$70	$74	$78
10.2%	$55	$57	$60	$62	$65

Current price: $75.75. Green = undervalued, Red = overvalued.

Fair Value

$95.40

Market Price

$75.75

Upside / Downside

+25.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Ingersoll Rand Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.8% to 10.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 68, DPO 77, DIO 96). At a 8.2% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.2x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $95.39 per share, suggesting IR is undervalued by 25.9% at the current price of $75.75.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

EV/EBITDA Exit Multiple

18.21x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	1,820	1,900	1,980	2,134	2,356	2,415
(−) Net Interest	190	199	207	223	246	253
(+) D&A	110	123	131	139	139	143
EBITDA	2,120	2,221	2,319	2,496	2,742	2,810

(−) Tax	328	342	357	384	424	—
(−) CapEx	130	136	142	153	169	—
(−) ΔWC	30	75	77	146	210	—
Free Cash Flow (FCF)	1,632	1,668	1,744	1,813	1,939	—

Peers' EBITDA Multiple						18.2x
Terminal Value						51,176
WACC / Discount Rate	8.16%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	1,569	1,483	1,433	1,378	1,362	34,568

Enterprise Value	41,792
Projection Period	7,224	17.3%
Terminal Value	34,568	82.7%

(−) Current Net Debt	3,536
Equity Value	38,256
(÷) Outstanding Shares	401M
Fair Price	$95	+25.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.2x	16.2x	18.2x	20.2x	22.2x
6.2%	$84	$94	$105	$115	$125
7.2%	$80	$90	$100	$110	$120
8.2%	$76	$86	$95	$105	$114
9.2%	$73	$82	$91	$100	$109
10.2%	$70	$78	$87	$96	$104

Current price: $75.75. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$107.01

Market Price

$75.75

Upside / Downside

+41.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Ingersoll Rand Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.8% to 4.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 68, DPO 77, DIO 96). At a 8.2% WACC with mid-year discounting, the terminal value (70% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.2x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $107.00 per share, suggesting IR is undervalued by 41.2% at the current price of $75.75.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

EV/EBITDA Exit Multiple

18.21x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	1,820	1,900	1,980	2,134	2,356	2,572	2,776	2,961	3,123	3,255	3,337
(−) Net Interest	190	199	207	223	246	269	290	310	327	341	349
(+) D&A	110	123	131	139	139	146	157	169	183	197	202
EBITDA	2,120	2,221	2,319	2,496	2,742	2,987	3,223	3,440	3,633	3,793	3,888

(−) Tax	328	342	357	384	424	463	500	533	562	586	—
(−) CapEx	130	136	142	153	169	184	199	212	224	233	—
(−) ΔWC	30	75	77	146	210	205	193	176	153	125	—
Free Cash Flow (FCF)	1,632	1,668	1,744	1,813	1,939	2,135	2,331	2,519	2,694	2,849	—

Peers' EBITDA Multiple											18.2x
Terminal Value											70,804
WACC / Discount Rate	8.16%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	1,569	1,483	1,433	1,378	1,362	1,387	1,400	1,398	1,383	1,352	32,305

Enterprise Value	46,447
Projection Period	14,143	30.4%
Terminal Value	32,305	69.6%

(−) Current Net Debt	3,536
Equity Value	42,911
(÷) Outstanding Shares	401M
Fair Price	$107	+41.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.2x	16.2x	18.2x	20.2x	22.2x
6.2%	$106	$116	$127	$138	$148
7.2%	$97	$107	$116	$126	$136
8.2%	$89	$98	$107	$116	$125
9.2%	$82	$90	$98	$106	$115
10.2%	$76	$83	$91	$98	$105

Current price: $75.75. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$67.07

Market Price

$75.75

Upside / Downside

-11.5%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Ingersoll Rand Inc. (IR) has a fair value of $67.07 based on 10 comparable companies in the Industrial - Machinery industry.

P/E Valuation — Industrial - Machinery

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Ingersoll Rand Inc.IR	30,376	52.2x	23.0x
Eaton Corporation plcETN	155,906	38.4x	30.1x
Emerson Electric Co.EMR	79,137	35.0x	23.5x
Illinois Tool Works Inc.ITW	73,422	24.3x	24.4x
AMETEK, Inc.AME	53,267	36.3x	28.6x
Dover CorporationDOV	29,603	27.8x	26.9x
Xylem Inc.XYL	27,487	29.5x	22.8x
ITT Inc.ITT	18,430	33.7x	31.0x
IDEX CorporationIEX	16,055	33.8x	27.5x
Graco Inc.GGG	12,877	25.2x	26.8x
Donaldson Company, Inc.DCI	9,960	28.2x	23.5x
Industry Median		31.6x	26.9x
(*) Profit after tax		581	1,318
Equity Value		18,384	35,405
(/) Outstanding shares		401	401
Fair Price		$46	$88

Selected Fair Value (avg of trailing + forward)

$67.07

-11.5%

Fair Value

$78.42

Market Price

$75.75

Upside / Downside

+3.5%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Ingersoll Rand Inc. (IR) has a fair value of $78.42 based on 10 comparable companies in the Industrial - Machinery industry.

EV/EBITDA Valuation — Industrial - Machinery

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Ingersoll Rand Inc.IR	30,376	17.6x	17.7x
Eaton Corporation plcETN	155,906	28.0x	24.4x
Emerson Electric Co.EMR	79,137	18.9x	18.8x
Illinois Tool Works Inc.ITW	73,422	17.5x	17.6x
AMETEK, Inc.AME	53,267	29.3x	27.1x
Dover CorporationDOV	29,603	17.0x	17.7x
Xylem Inc.XYL	27,487	15.7x	15.7x
ITT Inc.ITT	18,430	20.9x	21.2x
IDEX CorporationIEX	16,055	19.1x	19.2x
Graco Inc.GGG	12,877	16.4x	17.3x
Donaldson Company, Inc.DCI	9,960	17.1x	17.2x
Industry Median		18.2x	18.3x
(*) EBITDA		1,924	1,911
= Enterprise Value		35,026	34,935
(-) Net Debt		3,536	3,536
Equity Value		31,490	31,399
(/) Outstanding shares		401	401
Fair Price		$79	$78

Selected Fair Value (avg of trailing + forward)

$78.42

+3.5%

Fair Value

$87.02

Market Price

$75.75

Upside / Downside

+14.9%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Ingersoll Rand Inc. (IR) has a fair value of $87.02 based on 10 comparable companies in the Industrial - Machinery industry.

EV/Revenue Valuation — Industrial - Machinery

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Ingersoll Rand Inc.IR	30,376	4.4x	4.5x
Eaton Corporation plcETN	155,906	6.1x	5.3x
Emerson Electric Co.EMR	79,137	5.1x	5.1x
Illinois Tool Works Inc.ITW	73,422	5.1x	5.1x
AMETEK, Inc.AME	53,267	7.4x	6.9x
Dover CorporationDOV	29,603	3.9x	4.1x
Xylem Inc.XYL	27,487	3.1x	3.1x
ITT Inc.ITT	18,430	4.5x	4.5x
IDEX CorporationIEX	16,055	5.0x	5.0x
Graco Inc.GGG	12,877	5.5x	5.8x
Donaldson Company, Inc.DCI	9,960	2.8x	2.9x
Industry Median		5.0x	5.0x
(*) Revenue		7,651	7,602
= Enterprise Value		38,534	38,330
(-) Net Debt		3,536	3,536
Equity Value		34,998	34,794
(/) Outstanding shares		401	401
Fair Price		$87	$87

Selected Fair Value (avg of trailing + forward)

$87.02

+14.9%

PEG Fair Value

Fair Value

$87.80

Market Price

$75.75

Upside / Downside

+15.9%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 0.1% dividend yield, the company has a fair value of $87.80 based on NTM EPS (FY2026) of $3.51. The current PEG ratio is 0.64.

PEG Ratio

0.64Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 21.6 ÷ (33.5% + 0.1%) = 0.64

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG moderately applicable

Growth above 25% is capped — hypergrowth may not be sustainable long-term.

Fair Value Calculation

EPS Growth RateForward	33.5%
Dividend Yield	+0.1%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$3.51
Fair Value	$87.80

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$1.45	—	—
FY2026E	$3.51	+142.2%	11
FY2027E	$3.85	+9.5%	11
FY2028E	$4.19	+9.1%	10
FY2029E	$4.60	+9.7%	5

4Y Forward EPS CAGR: 33.5%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$562.5M	$1.34	—
FY2022	$604.7M	$1.48	+10.4%
FY2023	$778.7M	$1.90	+28.4%
FY2024	$838.6M	$2.06	+8.4%
FY2025	$581.4M	$1.45	-29.6%

4Y Historical EPS CAGR: 2.0%

Earnings Power Value

Fair Value

$36.71

Market Price

$75.75

Upside / Downside

-51.5%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 8.2% and normalized earnings of $1.5B, the company has a fair value of $36.71 per share. The EPV range is $29.64 – $46.96 based on WACC sensitivity (6.7% – 9.7%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	1,490	1,490	1,490
(/) WACC	9.7%	8.2%	6.7%
Enterprise Value	15,422	18,256	22,366
(-) Net debt	3,536	3,536	3,536
Equity Value	11,886	14,720	18,830
(/) Outstanding shares	401	401	401
Fair Price	$29.64	$36.71	$46.96

Dividend Discount Model

Fair Value

$2.15

Market Price

$75.75

Upside / Downside

-97.2%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.9% and projected dividend growth of 15.0%, the fair value is $2.15 per share. The DDM range is $1.49 – $3.19 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$0.08

Dividend Yield

0.11%

Payout Ratio

5.5%

Dividend Coverage

18.28x

FCF Payout Ratio2.6%

DPS CAGR (4Y)42.1%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$0.08	5.5%	-0.0%
2024	$0.08	3.9%	+0.1%
2023	$0.08	4.2%	+0.3%
2022	$0.08	5.4%	+305.7%
2021	$0.02	1.5%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$0.09	15.0%	0.9186	$0.08
2027	$0.10	15.0%	0.8439	$0.09
2028	$0.12	15.0%	0.7752	$0.09
2029	$0.14	15.0%	0.7122	$0.10
2030	$0.16	15.0%	0.6542	$0.10
Terminal Value	$0.16 DPS	2.5%		$1.68

PV of Projected Dividends$0.47

PV of Terminal Value$1.68

Fair Value per Share$2.15

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	13.0%	14.0%	15.0%	15.0%	15.0%
6.9%	$3	$3	$3	$3	$3
7.9%	$2	$2	$3	$3	$3
8.9%	$2	$2	$2	$2	$2
9.9%	$2	$2	$2	$2	$2
10.9%	$1	$2	$2	$2	$2

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.