Is Ingersoll Rand, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Ingersoll Rand, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 39, an EV to EBITDA of 19.69, and a Price to Book Value of 3.33, all of which suggest that the stock is trading at a premium compared to its fundamentals.
When compared to peers, Ingersoll Rand's P/E ratio of 39 is notably higher than Trane Technologies Plc at 37.47 and Parker-Hannifin Corp. at 33.82, both of which are categorized as fair. Additionally, the company's return over the past year has lagged behind the S&P 500, with a decline of 11.80% compared to the index's gain of 10.26%. This further reinforces the notion that Ingersoll Rand is overvalued in the current market environment.