Trane TechnologiesMIL:1TTH 69 PEG Ratio is 1.85 as of Jul. 03, 2026, which is 6% above its 10-year median of 1.75. GuruFocus rates MIL:1TTH with a GF Score™ of 69/100 and a GF Value™ of €375.35 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 685 Construction companies, Trane Technologies ranks worse than 64.23% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Trane Technologies's PEG Ratio or its related term are showing as below:
MIL:1TTH'
s PEG Ratio Range Over the Past 10 Years
Min: 0.39 Med: 1.75 Max: 41.87
Current: 1.77
During the past 13 years, Trane Technologies's highest PEG Ratio was 41.87. The lowest was 0.39. And the median was 1.75.
MIL:1TTH's PEG Ratio is ranked worse than 64.23% of 685
companies
in the Construction industry
Industry Median: 1.11
vs MIL:1TTH: 1.77
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Trane Technologies (MIL:1TTH) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Trane Technologies PEG Ratio Related Terms
Trane Technologies PEG Ratio Historical Data
* Premium members only.
The historical data trend for Trane Technologies's PEG Ratio 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 PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Trane Technologies's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Trane Technologies (MIL:1TTH) has a PEG Ratio of 1.85 as of Jul. 03, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Trane Technologies and its competitors. This is near median its historical median of 1.75. Over the past decade, Trane Technologies' PEG Ratio has ranged from 0.39 to 41.87. According to the industry distribution chart, Trane Technologies ranks #440 out of 685 companies in the Construction industry, placing it in the top 64.2%.
Is Trane Technologies' PEG Ratio too high?
Trane Technologies' current PEG Ratio of 1.85 is near median its 10-year median of 1.75. Over the past 10 years, this metric has ranged from a low of 0.39 to a high of 41.87. The Construction industry median PEG Ratio is 1.11. Trane Technologies' value of 1.85 is 66.7% above this industry median. Based on the distribution chart, Trane Technologies ranks #440 out of 685 companies in the Construction industry, which is below the industry midpoint. Overall, Trane Technologies has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Trane Technologies' PEG Ratio compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #440 out of 685 companies for PEG Ratio. This places Trane Technologies in the lower half of its industry. The industry median PEG Ratio is 1.11. Trane Technologies' value of 1.85 is 66.7% above this benchmark. Historically, Trane Technologies' own PEG Ratio has ranged from 0.39 to 41.87 over the past decade. While the company's 10-year median is 1.75 vs. the industry median of 1.11, Trane Technologies has consistently been above 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 PEG Ratio for a Construction company?
The median PEG Ratio among Construction companies is 1.11, based on 685 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current PEG Ratio of 1.85 is 66.7% above 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Trane Technologies and its competitors. For the Construction industry, the median PEG Ratio is 1.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current PEG Ratio is 1.85, which is near median its own 10-year median of 1.75. 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 Modestly Overvalued. The stock's GF Value™ is €375.35, compared to a current price of €430.40 — trading 14.7% above its estimated fair value. The current PEG Ratio is 1.85, which is near median its 10-year median of 1.75 and 66.7% above the Construction industry median of 1.11. Trane Technologies' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Trane Technologies (MIL:1TTH), the current PEG Ratio is 1.85 as of Jul. 03, 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 €430.40 is trading 14.7% above its estimated GF Value™ of €375.35.
GuruFocus considers Trane Technologies to be Modestly Overvalued.
Key valuation signals for MIL:1TTH:
PEG Ratio: 1.85 (near median its 10-year median of 1.75)
GF Value™: €375.35 vs. price of €430.40 (14.7% above fair value)
Industry Position: 66.7% above the Construction median (#440 of 685)
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
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