PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Trane Technologies's PE Ratio without NRI is 33.01. Trane Technologies's 5-Year EBITDA growth rate is 14.40%. Therefore, Trane Technologies's PEG Ratio for today is 2.29.
* 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:
TT'
s PEG Ratio Range Over the Past 10 Years
Min: 0.5 Med: 1.94 Max: 45.43
Current: 2.29
During the past 13 years, Trane Technologies's highest PEG Ratio was 45.43. The lowest was 0.50. And the median was 1.94.
TT's PEG Ratio is ranked worse than 67.05% of 613
companies
in the Construction industry
Industry Median: 1.37
vs TT: 2.29
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Trane Technologies PEG Ratio Historical Data
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.
Trane Technologies PEG Ratio Competitive Comparison
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 Distribution
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.
Trane Technologies PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
Trane Technologies's PEG Ratio for today is calculated as
* 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 (NYSE:TT) 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
Thank you for viewing the detailed overview of Trane Technologies's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Trane Technologies (Trane Technologies) Business Description
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 $16 billion 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 over 70% of its revenue.
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