Discounted Cash Flow

Trane Technologies Plc.

TT · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $13.5b $1.5b $1.3b 10.9% $5.70
2017 $14.2b (5.1%) $1.3b (-11.8%) $1.3b (-1.2%) 9.2% (-16.0%) $5.11 (-10.4%)
2018 $15.7b (10.4%) $1.3b (2.7%) $1.0b (-20.0%) 8.5% (-7.0%) $5.41 (5.9%)
2019 $16.6b (5.9%) $1.4b (5.5%) $1.7b (59.8%) 8.5% (-0.4%) $5.84 (7.9%)
2020 $12.5b (-25.0%) $854.9m (-39.4%) $1.3b (-22.6%) 6.9% (-19.2%) $3.56 (-39.0%)
2021 $14.1b (13.5%) $1.4b (66.5%) $1.4b (5.9%) 10.1% (46.7%) $5.96 (67.4%)
2022 $16.0b (13.1%) $1.8b (23.4%) $1.2b (-11.2%) 11.0% (9.1%) $7.55 (26.7%)
2023 $17.7b (10.5%) $2.0b (15.2%) $2.1b (72.3%) 11.4% (4.2%) $8.85 (17.2%)
2024 $19.8b (12.2%) $2.6b (26.9%) $2.8b (32.8%) 12.9% (13.1%) $11.35 (28.2%)
2025 $21.3b (7.5%) $2.9b (13.7%) $2.8b (1.3%) 13.7% (5.7%) $13.09 (15.3%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model