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Trane TechnologiesTT -1.02%93 Earnings Yield (Joel Greenblatt) % is 3.53% as of Jun. 2026, which is 32% below its 10-year median of 5.20. GuruFocus rates TT with a GF Score™ of 93/100 and a GF Value™ of $437.58 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,803 Construction companies, Trane Technologies ranks worse than 63.89% on this metric.
Trane Technologies's Enterprise Value for the quarter that ended in Jun. 2026 was $111,894 Mil.
Trane Technologies's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $3,952 Mil. Trane Technologies's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 3.53%.
The historical rank and industry rank for Trane Technologies's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
TT'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.39 Med: 5.2 Max: 15.43
Current: 3.64
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Trane Technologies was 15.43%. The lowest was 3.39%. And the median was 5.20%.
TT's Earnings Yield (Joel Greenblatt) % is ranked worse than 63.89% of 1803
companies
in the Construction industry
Industry Median: 6.39
vs TT: 3.64
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Trane Technologies's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 20.71%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Trane Technologies Earnings Yield (Joel Greenblatt) % Related Terms
Trane Technologies Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Trane Technologies's Earnings Yield (Joel Greenblatt) % 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.
For the Building Products & Equipment subindustry, Trane Technologies's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Trane Technologies's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Trane Technologiess Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Trane Technologies's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,952 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 3.53% mean?
Trane Technologies (TT) has a Earnings Yield (Joel Greenblatt) % of 3.53% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Trane Technologies and its competitors. This is 32% below median its historical median of 5.20. Over the past decade, Trane Technologies' Earnings Yield (Joel Greenblatt) % has ranged from 3.39 to 15.43. According to the industry distribution chart, Trane Technologies ranks #1152 out of 1803 companies in the Construction industry, placing it in the top 63.9%.
Is Trane Technologies' Earnings Yield (Joel Greenblatt) % too high?
Trane Technologies' current Earnings Yield (Joel Greenblatt) % of 3.53% is 32% below median its 10-year median of 5.20. Over the past 10 years, this metric has ranged from a low of 3.39 to a high of 15.43. The Construction industry median Earnings Yield (Joel Greenblatt) % is 6.39. Trane Technologies' value of 3.53% is 44.8% below this industry median. Based on the distribution chart, Trane Technologies ranks #1152 out of 1803 companies in the Construction industry, which is below the industry midpoint. Overall, Trane Technologies has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Trane Technologies' Earnings Yield (Joel Greenblatt) % compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #1152 out of 1803 companies for Earnings Yield (Joel Greenblatt) %. This places Trane Technologies in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 6.39. Trane Technologies' value of 3.53% is 44.8% below this benchmark. Historically, Trane Technologies' own Earnings Yield (Joel Greenblatt) % has ranged from 3.39 to 15.43 over the past decade. While the company's 10-year median is 5.20 vs. the industry median of 6.39, 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 Earnings Yield (Joel Greenblatt) % for a Construction company?
The median Earnings Yield (Joel Greenblatt) % among Construction companies is 6.39, based on 1,803 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current Earnings Yield (Joel Greenblatt) % of 3.53% is 44.8% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Trane Technologies and its competitors. For the Construction industry, the median Earnings Yield (Joel Greenblatt) % is 6.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current Earnings Yield (Joel Greenblatt) % is 3.53%, which is 32% below median its own 10-year median of 5.20. 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 (TT) is currently considered Fairly Valued. The stock's GF Value™ is $437.58, compared to a current price of $478.66 — trading 9.4% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 3.53%, which is 32% below median its 10-year median of 5.20 and 44.8% below the Construction industry median of 6.39. Trane Technologies' overall GF Score™ is 93/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Trane Technologies (TT), the current Earnings Yield (Joel Greenblatt) % is 3.53% 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 (TT) Overvalued in 2026?
Based on GuruFocus' analysis, Trane Technologies stock appears to be overvalued.
The current stock price of $478.66 is trading 9.4% above its estimated GF Value™ of $437.58.
GuruFocus considers Trane Technologies to be Fairly Valued.
Key valuation signals for TT:
Earnings Yield (Joel Greenblatt) %: 3.53% (32% below median its 10-year median of 5.20)
GF Value™: $437.58 vs. price of $478.66 (9.4% above fair value)
Industry Position: 44.8% below the Construction median (#1152 of 1803)
No single metric tells the full story. See the TT 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.
93GF Score
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