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Trane TechnologiesMIL:1TTH 69 Debt-to-EBITDA is 0.87 as of Jun. 2026, which is 54% below its 10-year median of 1.91. GuruFocus rates MIL:1TTH with a GF Score™ of 69/100 and a GF Value™ of €393.24 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,404 Construction companies, Trane Technologies ranks better than 67.66% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Trane Technologies's Debt-to-EBITDA or its related term are showing as below:
MIL:1TTH'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.08 Med: 1.91 Max: 2.89
Current: 1.08
During the past 13 years, the highest Debt-to-EBITDA Ratio of Trane Technologies was 2.89. The lowest was 1.08. And the median was 1.91.
MIL:1TTH's Debt-to-EBITDA is ranked better than 67.66% of 1404
companies
in the Construction industry
Industry Median: 2.15
vs MIL:1TTH: 1.08
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Trane Technologies Debt-to-EBITDA Related Terms
Trane Technologies Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Trane Technologies's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MIL:1TTH vs JCI, CARR, LII: Debt-to-EBITDA Comparison
For the Building Products & Equipment subindustry, Trane Technologies's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trane Technologies Debt-to-EBITDA vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Trane Technologies's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Trane Technologies (MIL:1TTH) has a Debt-to-EBITDA of 0.87 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Trane Technologies. This is 54% below median its historical median of 1.91. Over the past decade, Trane Technologies' Debt-to-EBITDA has ranged from 1.08 to 2.89. According to the industry distribution chart, Trane Technologies ranks #454 out of 1404 companies in the Construction industry, placing it in the top 32.3%.
Is Trane Technologies' Debt-to-EBITDA too high?
Trane Technologies' current Debt-to-EBITDA of 0.87 is 54% below median its 10-year median of 1.91. Over the past 10 years, this metric has ranged from a low of 1.08 to a high of 2.89. The Construction industry median Debt-to-EBITDA is 2.15. Trane Technologies' value of 0.87 is 59.5% below this industry median. Based on the distribution chart, Trane Technologies ranks #454 out of 1404 companies in the Construction industry, which is above the industry midpoint. Overall, Trane Technologies has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Trane Technologies' Debt-to-EBITDA compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #454 out of 1404 companies for Debt-to-EBITDA. This puts Trane Technologies in the upper half of its industry. The industry median Debt-to-EBITDA is 2.15. Trane Technologies' value of 0.87 is 59.5% below this benchmark. Historically, Trane Technologies' own Debt-to-EBITDA has ranged from 1.08 to 2.89 over the past decade. While the company's 10-year median is 1.91 vs. the industry median of 2.15, Trane Technologies has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Construction company?
The median Debt-to-EBITDA among Construction companies is 2.15, based on 1,404 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current Debt-to-EBITDA of 0.87 is 59.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Trane Technologies. For the Construction industry, the median Debt-to-EBITDA is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current Debt-to-EBITDA is 0.87, which is 54% below median its own 10-year median of 1.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trane Technologies stock overvalued right now?
Based on GuruFocus' analysis, Trane Technologies (MIL:1TTH) is currently considered Fairly Valued. The stock's GF Value™ is €393.24, compared to a current price of €417.80 — trading 6.2% above its estimated fair value. The current Debt-to-EBITDA is 0.87, which is 54% below median its 10-year median of 1.91 and 59.5% below the Construction industry median of 2.15. Trane Technologies' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Trane Technologies (MIL:1TTH), the current Debt-to-EBITDA is 0.87 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Trane Technologies (MIL:1TTH) Overvalued in 2026?
Based on GuruFocus' analysis, Trane Technologies stock appears to be overvalued.
The current stock price of €417.80 is trading 6.2% above its estimated GF Value™ of €393.24.
GuruFocus considers Trane Technologies to be Fairly Valued.
Key valuation signals for MIL:1TTH:
Debt-to-EBITDA: 0.87 (54% below median its 10-year median of 1.91)
GF Value™: €393.24 vs. price of €417.80 (6.2% above fair value)
Industry Position: 59.5% below the Construction median (#454 of 1404)
No single metric tells the full story. See the MIL:1TTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trane Technologies manufactures and services commercial and residential HVAC systems and transportation refrigeration solutions under its prominent Trane, American Standard, and Thermo King brands. The company generates approximately 70% of sales from equipment and 30% from parts and services. While the firm is domiciled in Ireland, North America accounts for approximately 80% of its revenue, with 13% from EMEA and 7% Asia-Pacific. The company was formed in 2020 when its former parent, Ingersoll Rand, merged with Gardner Denver in a tax-advantaged reverse Morris trust transaction.
69GF Score
Get the complete analysis for MIL:1TTH
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