Is Trane Technologies Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for Trane Technologies Plc has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. Key valuation ratios include a P/E ratio of 38, an EV to EBITDA of 27.03, and a PEG ratio of 1.37. In comparison to peers, Trane Technologies has a lower P/E ratio than GE Aerospace, which is very expensive at 136.79, and is also more favorable than Parker-Hannifin Corp., which has a P/E of 37.22.
Despite some recent underperformance against the S&P 500, where Trane returned 3.92% over the past year compared to the index's 14.08%, its strong ROCE of 32.32% and ROE of 37.21% suggest solid operational efficiency. Overall, the fair valuation indicates that while it may not be a bargain, it is not overvalued relative to its peers in the industrial manufacturing sector.