COMPILED BY GEMINI 3.1

Trane Technologies (TT) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$21.30 per share
Current Price $430.88
Margin of Safety -95.1%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
8.0%

" data-astro-cid-jm7p2jvs> Revenue grew 7.5% in FY2025. While FCF grew modestly in FY2025, operating cash flow remains strong. We assume 8% forward FCF growth, balancing recent multi-year strength driven by sustainability upgrades with a cautious view on commercial real estate and macro industrial cycles.

Discount Rate (WACC)
9.0%

" data-astro-cid-jm7p2jvs> Revenue grew 7.5% in FY2025. While FCF grew modestly in FY2025, operating cash flow remains strong. We assume 8% forward FCF growth, balancing recent multi-year strength driven by sustainability upgrades with a cautious view on commercial real estate and macro industrial cycles.

Terminal Growth Rate
9.0%

" data-astro-cid-jm7p2jvs> Revenue grew 7.5% in FY2025. While FCF grew modestly in FY2025, operating cash flow remains strong. We assume 8% forward FCF growth, balancing recent multi-year strength driven by sustainability upgrades with a cautious view on commercial real estate and macro industrial cycles.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 8.0%8.5%9.0%9.5%10.0%
8.0% $21.30 $21.30 $21.30 $21.30 $21.30
8.5% $21.30 $21.30 $21.30 $21.30 $21.30
9.0% $21.30 $21.30 $21.30 $21.30 $21.30
9.5% $21.30 $21.30 $21.30 $21.30 $21.30
10.0% $21.30 $21.30 $21.30 $21.30 $21.30

Undervalued vs current price Overvalued vs current price

Frequently Asked Questions

Why use DCF instead of a P/E or EV/EBITDA multiple?

Westmount Research. "Trane Technologies (TT) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.