Is Trane Technologies Plc overvalued or undervalued?

As of 17 October 2025, Trane Technologies Plc's valuation grade has moved from expensive to fair, indicating a shift towards a more favorable assessment. The company appears fairly valued based on its current metrics, with a P/E ratio of 38, a Price to Book Value of 14.17, and an EV to EBITDA of 27.03. In comparison to peers, Trane's P/E is lower than GE Aerospace's 136.79 and higher than Parker-Hannifin's 37.22, suggesting it is positioned competitively within the industry.
Trane Technologies has shown a strong return over the past three years at 182.06%, significantly outperforming the S&P 500's 81.19% during the same period, reinforcing the notion of its fair valuation. Overall, the company's solid ROCE of 32.32% and ROE of 37.21% further support the assessment that it is neither undervalued nor overvalued at this time.