Intrinsic value of Ingersoll-Rand - IR

Previous Close

$86.38

  Intrinsic Value

$163.78

stock screener

  Rating & Target

str. buy

+90%

Previous close

$86.38

 
Intrinsic value

$163.78

 
Up/down potential

+90%

 
Rating

str. buy

We calculate the intrinsic value of IR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 21.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  1.56
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.31
  5.28
  5.25
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
Revenue, $m
  13,509
  14,320
  15,164
  16,045
  16,965
  17,924
  18,926
  19,973
  21,067
  22,211
  23,408
  24,660
  25,970
  27,342
  28,779
  30,284
  31,860
  33,512
  35,244
  37,059
  38,962
  40,957
  43,050
  45,245
  47,547
  49,963
  52,497
  55,155
  57,945
  60,873
  63,945
Variable operating expenses, $m
 
  7,469
  7,877
  8,302
  8,745
  9,207
  9,690
  10,195
  10,723
  11,274
  11,851
  11,889
  12,521
  13,182
  13,875
  14,600
  15,360
  16,157
  16,992
  17,867
  18,784
  19,746
  20,755
  21,813
  22,923
  24,088
  25,309
  26,591
  27,936
  29,348
  30,829
Fixed operating expenses, $m
 
  5,120
  5,248
  5,379
  5,514
  5,651
  5,793
  5,937
  6,086
  6,238
  6,394
  6,554
  6,718
  6,886
  7,058
  7,234
  7,415
  7,600
  7,790
  7,985
  8,185
  8,390
  8,599
  8,814
  9,035
  9,260
  9,492
  9,729
  9,972
  10,222
  10,477
Total operating expenses, $m
  11,952
  12,589
  13,125
  13,681
  14,259
  14,858
  15,483
  16,132
  16,809
  17,512
  18,245
  18,443
  19,239
  20,068
  20,933
  21,834
  22,775
  23,757
  24,782
  25,852
  26,969
  28,136
  29,354
  30,627
  31,958
  33,348
  34,801
  36,320
  37,908
  39,570
  41,306
Operating income, $m
  1,557
  1,730
  2,040
  2,365
  2,706
  3,065
  3,443
  3,840
  4,259
  4,699
  5,163
  6,217
  6,732
  7,274
  7,846
  8,449
  9,085
  9,755
  10,462
  11,207
  11,993
  12,822
  13,696
  14,617
  15,589
  16,614
  17,695
  18,835
  20,036
  21,303
  22,639
EBITDA, $m
  1,909
  2,463
  2,782
  3,117
  3,470
  3,840
  4,229
  4,639
  5,070
  5,523
  6,001
  6,504
  7,034
  7,593
  8,181
  8,802
  9,456
  10,145
  10,872
  11,638
  12,446
  13,298
  14,197
  15,144
  16,143
  17,196
  18,306
  19,477
  20,711
  22,012
  23,383
Interest expense (income), $m
  170
  152
  178
  205
  233
  262
  292
  324
  357
  391
  427
  465
  505
  546
  589
  635
  682
  732
  784
  839
  896
  956
  1,019
  1,085
  1,154
  1,227
  1,303
  1,383
  1,467
  1,555
  1,648
Earnings before tax, $m
  1,741
  1,578
  1,862
  2,160
  2,474
  2,804
  3,151
  3,517
  3,902
  4,308
  4,736
  5,752
  6,227
  6,729
  7,257
  7,815
  8,403
  9,023
  9,678
  10,368
  11,097
  11,866
  12,677
  13,532
  14,435
  15,387
  16,392
  17,451
  18,569
  19,748
  20,991
Tax expense, $m
  281
  426
  503
  583
  668
  757
  851
  950
  1,054
  1,163
  1,279
  1,553
  1,681
  1,817
  1,959
  2,110
  2,269
  2,436
  2,613
  2,799
  2,996
  3,204
  3,423
  3,654
  3,897
  4,155
  4,426
  4,712
  5,014
  5,332
  5,668
Net income, $m
  1,476
  1,152
  1,359
  1,577
  1,806
  2,047
  2,300
  2,567
  2,849
  3,145
  3,457
  4,199
  4,546
  4,912
  5,298
  5,705
  6,134
  6,587
  7,065
  7,569
  8,101
  8,662
  9,254
  9,879
  10,537
  11,233
  11,966
  12,740
  13,555
  14,416
  15,323

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,715
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  17,397
  16,631
  17,613
  18,636
  19,703
  20,818
  21,982
  23,198
  24,468
  25,797
  27,187
  28,641
  30,163
  31,756
  33,425
  35,173
  37,004
  38,923
  40,934
  43,042
  45,252
  47,570
  50,000
  52,549
  55,223
  58,029
  60,972
  64,060
  67,300
  70,700
  74,268
Adjusted assets (=assets-cash), $m
  15,682
  16,631
  17,613
  18,636
  19,703
  20,818
  21,982
  23,198
  24,468
  25,797
  27,187
  28,641
  30,163
  31,756
  33,425
  35,173
  37,004
  38,923
  40,934
  43,042
  45,252
  47,570
  50,000
  52,549
  55,223
  58,029
  60,972
  64,060
  67,300
  70,700
  74,268
Revenue / Adjusted assets
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
  0.861
Average production assets, $m
  4,611
  4,883
  5,171
  5,471
  5,785
  6,112
  6,454
  6,811
  7,184
  7,574
  7,982
  8,409
  8,856
  9,324
  9,814
  10,327
  10,864
  11,428
  12,018
  12,637
  13,286
  13,966
  14,680
  15,429
  16,214
  17,037
  17,901
  18,808
  19,759
  20,758
  21,805
Working capital, $m
  1,989
  673
  713
  754
  797
  842
  890
  939
  990
  1,044
  1,100
  1,159
  1,221
  1,285
  1,353
  1,423
  1,497
  1,575
  1,656
  1,742
  1,831
  1,925
  2,023
  2,127
  2,235
  2,348
  2,467
  2,592
  2,723
  2,861
  3,005
Total debt, $m
  4,070
  4,344
  4,994
  5,673
  6,380
  7,119
  7,891
  8,697
  9,540
  10,421
  11,342
  12,306
  13,315
  14,372
  15,478
  16,637
  17,851
  19,123
  20,456
  21,854
  23,319
  24,856
  26,467
  28,157
  29,930
  31,790
  33,741
  35,789
  37,937
  40,191
  42,557
Total liabilities, $m
  10,754
  11,027
  11,677
  12,356
  13,063
  13,802
  14,574
  15,380
  16,223
  17,104
  18,025
  18,989
  19,998
  21,055
  22,161
  23,320
  24,534
  25,806
  27,139
  28,537
  30,002
  31,539
  33,150
  34,840
  36,613
  38,473
  40,424
  42,472
  44,620
  46,874
  49,240
Total equity, $m
  6,644
  5,605
  5,935
  6,280
  6,640
  7,016
  7,408
  7,818
  8,246
  8,694
  9,162
  9,652
  10,165
  10,702
  11,264
  11,853
  12,470
  13,117
  13,795
  14,505
  15,250
  16,031
  16,850
  17,709
  18,610
  19,556
  20,547
  21,588
  22,680
  23,826
  25,028
Total liabilities and equity, $m
  17,398
  16,632
  17,612
  18,636
  19,703
  20,818
  21,982
  23,198
  24,469
  25,798
  27,187
  28,641
  30,163
  31,757
  33,425
  35,173
  37,004
  38,923
  40,934
  43,042
  45,252
  47,570
  50,000
  52,549
  55,223
  58,029
  60,971
  64,060
  67,300
  70,700
  74,268
Debt-to-equity ratio
  0.613
  0.770
  0.840
  0.900
  0.960
  1.010
  1.070
  1.110
  1.160
  1.200
  1.240
  1.270
  1.310
  1.340
  1.370
  1.400
  1.430
  1.460
  1.480
  1.510
  1.530
  1.550
  1.570
  1.590
  1.610
  1.630
  1.640
  1.660
  1.670
  1.690
  1.700
Adjusted equity ratio
  0.315
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337
  0.337

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,476
  1,152
  1,359
  1,577
  1,806
  2,047
  2,300
  2,567
  2,849
  3,145
  3,457
  4,199
  4,546
  4,912
  5,298
  5,705
  6,134
  6,587
  7,065
  7,569
  8,101
  8,662
  9,254
  9,879
  10,537
  11,233
  11,966
  12,740
  13,555
  14,416
  15,323
Depreciation, amort., depletion, $m
  352
  732
  742
  753
  763
  774
  786
  798
  811
  824
  838
  287
  302
  318
  335
  352
  371
  390
  410
  431
  453
  477
  501
  527
  553
  581
  611
  642
  674
  708
  744
Funds from operations, $m
  1,461
  1,884
  2,101
  2,329
  2,569
  2,821
  3,086
  3,366
  3,660
  3,969
  4,295
  4,486
  4,848
  5,230
  5,633
  6,057
  6,505
  6,977
  7,475
  8,000
  8,554
  9,139
  9,755
  10,405
  11,091
  11,814
  12,577
  13,381
  14,230
  15,124
  16,068
Change in working capital, $m
  -39
  38
  40
  41
  43
  45
  47
  49
  51
  54
  56
  59
  62
  64
  68
  71
  74
  78
  81
  85
  89
  94
  98
  103
  108
  114
  119
  125
  131
  138
  144
Cash from operations, $m
  1,500
  1,846
  2,062
  2,288
  2,526
  2,776
  3,039
  3,316
  3,608
  3,915
  4,239
  4,427
  4,787
  5,166
  5,565
  5,986
  6,431
  6,899
  7,393
  7,915
  8,465
  9,045
  9,657
  10,302
  10,983
  11,701
  12,458
  13,256
  14,099
  14,987
  15,923
Maintenance CAPEX, $m
  0
  -157
  -167
  -176
  -187
  -197
  -209
  -220
  -232
  -245
  -259
  -272
  -287
  -302
  -318
  -335
  -352
  -371
  -390
  -410
  -431
  -453
  -477
  -501
  -527
  -553
  -581
  -611
  -642
  -674
  -708
New CAPEX, $m
  -183
  -272
  -288
  -300
  -313
  -327
  -342
  -357
  -373
  -390
  -408
  -427
  -447
  -468
  -490
  -513
  -538
  -563
  -590
  -619
  -649
  -680
  -714
  -748
  -785
  -824
  -864
  -907
  -951
  -998
  -1,048
Cash from investing activities, $m
  240
  -429
  -455
  -476
  -500
  -524
  -551
  -577
  -605
  -635
  -667
  -699
  -734
  -770
  -808
  -848
  -890
  -934
  -980
  -1,029
  -1,080
  -1,133
  -1,191
  -1,249
  -1,312
  -1,377
  -1,445
  -1,518
  -1,593
  -1,672
  -1,756
Free cash flow, $m
  1,740
  1,417
  1,607
  1,811
  2,026
  2,251
  2,489
  2,739
  3,003
  3,280
  3,572
  3,728
  4,053
  4,396
  4,757
  5,138
  5,541
  5,965
  6,413
  6,886
  7,384
  7,911
  8,466
  9,052
  9,671
  10,324
  11,012
  11,739
  12,505
  13,314
  14,167
Issuance/(repayment) of debt, $m
  -151
  635
  651
  678
  708
  739
  772
  806
  843
  881
  921
  964
  1,009
  1,056
  1,106
  1,159
  1,214
  1,272
  1,333
  1,398
  1,465
  1,537
  1,611
  1,690
  1,773
  1,860
  1,951
  2,047
  2,148
  2,254
  2,366
Issuance/(repurchase) of shares, $m
  -187
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -356
  635
  651
  678
  708
  739
  772
  806
  843
  881
  921
  964
  1,009
  1,056
  1,106
  1,159
  1,214
  1,272
  1,333
  1,398
  1,465
  1,537
  1,611
  1,690
  1,773
  1,860
  1,951
  2,047
  2,148
  2,254
  2,366
Total cash flow (excl. dividends), $m
  1,327
  2,052
  2,257
  2,489
  2,734
  2,990
  3,261
  3,545
  3,845
  4,161
  4,494
  4,692
  5,062
  5,452
  5,863
  6,297
  6,755
  7,237
  7,746
  8,283
  8,850
  9,447
  10,078
  10,743
  11,444
  12,183
  12,964
  13,786
  14,654
  15,568
  16,533
Retained Cash Flow (-), $m
  -827
  -315
  -331
  -345
  -360
  -376
  -392
  -410
  -428
  -448
  -468
  -490
  -513
  -537
  -562
  -589
  -617
  -647
  -678
  -710
  -745
  -781
  -819
  -859
  -901
  -945
  -992
  -1,041
  -1,092
  -1,146
  -1,203
Prev. year cash balance distribution, $m
 
  1,354
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,091
  1,927
  2,145
  2,374
  2,615
  2,868
  3,136
  3,417
  3,713
  4,025
  4,202
  4,549
  4,915
  5,301
  5,708
  6,138
  6,591
  7,069
  7,573
  8,105
  8,666
  9,259
  9,884
  10,543
  11,238
  11,972
  12,746
  13,562
  14,423
  15,330
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  2,963
  1,764
  1,866
  1,955
  2,027
  2,082
  2,118
  2,136
  2,133
  2,110
  1,995
  1,941
  1,869
  1,780
  1,676
  1,560
  1,434
  1,302
  1,166
  1,030
  896
  768
  648
  537
  437
  349
  274
  210
  157
  115
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company's business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car. Its Climate segment includes Trane and American Standard Heating and Air Conditioning, which provide heating, ventilation and air conditioning systems, and commercial and residential building services, parts, support and controls. It offers energy services and building automation through Trane Building Advantage and Nexia. Its Industrial segment includes compressed air and gas systems and services, power tools, material handling systems, ARO fluid management equipment, as well as Club Car golf, utility and rough terrain vehicles.

FINANCIAL RATIOS  of  Ingersoll-Rand (IR)

Valuation Ratios
P/E Ratio 15.2
Price to Sales 1.7
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow 14.9
Price to Free Cash Flow 17
Growth Rates
Sales Growth Rate 1.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -26.8%
Cap. Spend. - 3 Yr. Gr. Rate -5.4%
Financial Strength
Quick Ratio 5
Current Ratio 0.1
LT Debt to Equity 55.8%
Total Debt to Equity 61.3%
Interest Coverage 11
Management Effectiveness
Return On Assets 9.5%
Ret/ On Assets - 3 Yr. Avg. 6.7%
Return On Total Capital 14.2%
Ret/ On T. Cap. - 3 Yr. Avg. 9.9%
Return On Equity 23.7%
Return On Equity - 3 Yr. Avg. 16.4%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 31%
Gross Margin - 3 Yr. Avg. 30.5%
EBITDA Margin 16.8%
EBITDA Margin - 3 Yr. Avg. 14.5%
Operating Margin 11.5%
Oper. Margin - 3 Yr. Avg. 11.1%
Pre-Tax Margin 12.9%
Pre-Tax Margin - 3 Yr. Avg. 10.5%
Net Profit Margin 10.9%
Net Profit Margin - 3 Yr. Avg. 7.7%
Effective Tax Rate 16.1%
Eff/ Tax Rate - 3 Yr. Avg. 27.9%
Payout Ratio 23.6%

IR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the IR stock intrinsic value calculation we used $13509 million for the last fiscal year's total revenue generated by Ingersoll-Rand. The default revenue input number comes from 2016 income statement of Ingersoll-Rand. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our IR stock valuation model: a) initial revenue growth rate of 6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for IR is calculated based on our internal credit rating of Ingersoll-Rand, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Ingersoll-Rand.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of IR stock the variable cost ratio is equal to 52.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $4995 million in the base year in the intrinsic value calculation for IR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.1% for Ingersoll-Rand.

Corporate tax rate of 27% is the nominal tax rate for Ingersoll-Rand. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the IR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for IR are equal to 34.1%.

Life of production assets of 29.3 years is the average useful life of capital assets used in Ingersoll-Rand operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for IR is equal to 4.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $6644 million for Ingersoll-Rand - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 253.663 million for Ingersoll-Rand is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Ingersoll-Rand at the current share price and the inputted number of shares is $21.9 billion.

RELATED COMPANIES Price Int.Val. Rating
LII Lennox Interna 206.68 160.37  hold
AAON AAON 34.85 14.48  str.sell
DOV Dover 97.19 277.22  str.buy
CUO Continental Ma 19.39 26.40  buy
SWK Stanley Black& 165.95 295.19  str.buy

COMPANY NEWS

▶ Bring On the Bitcoin Futures Trading Insanity!   [Dec-09-17 09:15AM  TheStreet.com]
▶ Ingersoll-Rand Is Goldman's Top Value Idea For 2018   [Dec-08-17 04:18PM  Benzinga]
▶ Putting Your Money into Infrastructure   [01:40PM  CNBC Videos]
▶ Ingersoll-Rand Is Toppy and Vulnerable   [Dec-05-17 03:48PM  TheStreet.com]
▶ What Does Ingersoll-Rand Plcs (IR) Share Price Indicate?   [Nov-15-17 06:47PM  Simply Wall St.]
▶ [$$] Falconhead Exiting Investment in GPSi Holdings   [Oct-31-17 05:01PM  The Wall Street Journal]
▶ Ingersoll-Rand tops 3Q profit forecasts   [06:43AM  Associated Press]
▶ Ingersoll-Rand Earns RS Rating Upgrade   [Oct-09-17 03:00AM  Investor's Business Daily]
▶ Ingersoll Rand Declares Quarterly Dividend   [Oct-03-17 06:31AM  Business Wire]
▶ Ingersoll-Rand Trying To Close In On Key Technical Measure   [Sep-11-17 03:00AM  Investor's Business Daily]
▶ Ingersoll Rand Makes Key Executive Appointments   [Sep-05-17 06:30AM  Business Wire]
▶ What's Going Wrong With the HVAC Sector?   [09:32AM  Motley Fool]
▶ Ingersoll-Rand beats Street 2Q forecasts   [Jul-26-17 08:35PM  Associated Press]
▶ Why Ingersoll-Rand is Tanking   [02:13PM  Barrons.com]
▶ Is Ingersoll-Rand Heading For A Breakup?   [Jul-10-17 11:20AM  Barrons.com]
▶ Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks   [Jun-19-17 08:36AM  Investor's Business Daily]
▶ Ingersoll-Rand Is on the Run   [Jun-16-17 03:14PM  TheStreet.com]
▶ Four stocks that will float your portfolio's boat   [May-26-17 05:24PM  CNBC Videos]
▶ ETFs with exposure to Ingersoll-Rand Plc : May 19, 2017   [May-19-17 01:57PM  Capital Cube]
▶ [$$] Air Conditioning Is Hot; The Best Stock to Own   [May-04-17 11:56AM  Barrons.com]
▶ ETFs with exposure to Ingersoll-Rand Plc : May 1, 2017   [May-01-17 04:01PM  Capital Cube]
Financial statements of IR
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.