Ingersoll Rand Investors, You Need to Know This

By Tamara Parker • Thursday, June 08 15:18 • Permanent Link

Today we're going to take a closer look at large-cap Industrials company Ingersoll Rand, whose shares are currently trading at $62.72. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

Ingersoll Rand Inc. provides various mission-critical air, fluid, energy, specialty vehicle, and medical technologies in the United States, Europe, the Middle East, India, Africa, and the Asia Pacific. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 20.49 and an average price to book (P/B) ratio of 3.78. In contrast, Ingersoll Rand has a trailing 12 month P/E ratio of 39.0 and a P/B ratio of 2.73.

Ingersoll Rand's PEG ratio is 2.18, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.