Intrinsic value of Ingersoll-Rand plc (Ireland) - IR

Previous Close

$112.79

  Intrinsic Value

$141.62

stock screener

  Rating & Target

buy

+26%

Previous close

$112.79

 
Intrinsic value

$141.62

 
Up/down potential

+26%

 
Rating

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 0001), $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 27.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.70
  7.43
  7.19
  6.97
  6.77
  6.59
  6.43
  6.29
  6.16
  6.05
  5.94
  5.85
  5.76
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.36
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.17
  5.16
  5.14
  5.13
Revenue, $m
  16,874
  18,128
  19,431
  20,785
  22,193
  23,656
  25,178
  26,762
  28,411
  30,129
  31,919
  33,786
  35,733
  37,765
  39,886
  42,102
  44,418
  46,839
  49,370
  52,019
  54,791
  57,692
  60,730
  63,912
  67,245
  70,738
  74,398
  78,235
  82,257
  86,475
Variable operating expenses, $m
  13,915
  14,878
  15,878
  16,918
  17,998
  19,122
  20,290
  21,507
  22,773
  24,092
  24,507
  25,940
  27,434
  28,994
  30,623
  32,325
  34,103
  35,961
  37,905
  39,939
  42,067
  44,294
  46,627
  49,070
  51,629
  54,310
  57,120
  60,066
  63,154
  66,392
Fixed operating expenses, $m
  801
  819
  837
  855
  874
  893
  913
  933
  954
  975
  996
  1,018
  1,040
  1,063
  1,087
  1,111
  1,135
  1,160
  1,185
  1,212
  1,238
  1,265
  1,293
  1,322
  1,351
  1,381
  1,411
  1,442
  1,474
  1,506
Total operating expenses, $m
  14,716
  15,697
  16,715
  17,773
  18,872
  20,015
  21,203
  22,440
  23,727
  25,067
  25,503
  26,958
  28,474
  30,057
  31,710
  33,436
  35,238
  37,121
  39,090
  41,151
  43,305
  45,559
  47,920
  50,392
  52,980
  55,691
  58,531
  61,508
  64,628
  67,898
Operating income, $m
  2,158
  2,432
  2,716
  3,012
  3,320
  3,641
  3,975
  4,323
  4,685
  5,063
  6,417
  6,828
  7,258
  7,707
  8,176
  8,667
  9,180
  9,718
  10,280
  10,869
  11,486
  12,133
  12,810
  13,521
  14,266
  15,047
  15,867
  16,727
  17,629
  18,576
EBITDA, $m
  3,349
  3,640
  3,943
  4,257
  4,585
  4,925
  5,280
  5,650
  6,035
  6,436
  6,855
  7,292
  7,749
  8,226
  8,724
  9,245
  9,790
  10,361
  10,958
  11,583
  12,239
  12,925
  13,644
  14,398
  15,189
  16,019
  16,889
  17,801
  18,759
  19,764
Interest expense (income), $m
  170
  221
  266
  313
  362
  413
  465
  520
  577
  637
  699
  763
  830
  900
  974
  1,050
  1,129
  1,213
  1,299
  1,390
  1,485
  1,585
  1,689
  1,797
  1,911
  2,031
  2,156
  2,287
  2,424
  2,568
  2,719
Earnings before tax, $m
  1,937
  2,166
  2,403
  2,650
  2,908
  3,175
  3,454
  3,745
  4,048
  4,364
  5,653
  5,998
  6,357
  6,733
  7,126
  7,538
  7,968
  8,418
  8,890
  9,384
  9,901
  10,444
  11,013
  11,609
  12,235
  12,891
  13,580
  14,302
  15,061
  15,857
Tax expense, $m
  523
  585
  649
  716
  785
  857
  933
  1,011
  1,093
  1,178
  1,526
  1,619
  1,717
  1,818
  1,924
  2,035
  2,151
  2,273
  2,400
  2,534
  2,673
  2,820
  2,973
  3,135
  3,303
  3,481
  3,667
  3,862
  4,066
  4,281
Net income, $m
  1,414
  1,581
  1,754
  1,935
  2,123
  2,318
  2,522
  2,734
  2,955
  3,186
  4,127
  4,378
  4,641
  4,915
  5,202
  5,502
  5,816
  6,145
  6,490
  6,850
  7,228
  7,624
  8,039
  8,475
  8,931
  9,411
  9,913
  10,441
  10,994
  11,576

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  19,285
  20,718
  22,207
  23,754
  25,363
  27,035
  28,775
  30,585
  32,470
  34,433
  36,479
  38,612
  40,837
  43,159
  45,584
  48,117
  50,763
  53,530
  56,423
  59,450
  62,618
  65,934
  69,406
  73,042
  76,852
  80,843
  85,026
  89,411
  94,008
  98,828
Adjusted assets (=assets-cash), $m
  19,285
  20,718
  22,207
  23,754
  25,363
  27,035
  28,775
  30,585
  32,470
  34,433
  36,479
  38,612
  40,837
  43,159
  45,584
  48,117
  50,763
  53,530
  56,423
  59,450
  62,618
  65,934
  69,406
  73,042
  76,852
  80,843
  85,026
  89,411
  94,008
  98,828
Revenue / Adjusted assets
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
  0.875
Average production assets, $m
  6,952
  7,469
  8,006
  8,563
  9,143
  9,746
  10,373
  11,026
  11,706
  12,413
  13,151
  13,920
  14,722
  15,559
  16,433
  17,346
  18,300
  19,298
  20,341
  21,432
  22,574
  23,769
  25,021
  26,332
  27,705
  29,144
  30,652
  32,233
  33,890
  35,628
Working capital, $m
  928
  997
  1,069
  1,143
  1,221
  1,301
  1,385
  1,472
  1,563
  1,657
  1,756
  1,858
  1,965
  2,077
  2,194
  2,316
  2,443
  2,576
  2,715
  2,861
  3,013
  3,173
  3,340
  3,515
  3,698
  3,891
  4,092
  4,303
  4,524
  4,756
Total debt, $m
  4,924
  5,796
  6,701
  7,642
  8,620
  9,637
  10,694
  11,795
  12,941
  14,135
  15,378
  16,675
  18,028
  19,440
  20,914
  22,454
  24,063
  25,745
  27,505
  29,345
  31,271
  33,287
  35,398
  37,609
  39,925
  42,352
  44,895
  47,561
  50,356
  53,287
Total liabilities, $m
  11,725
  12,597
  13,502
  14,443
  15,421
  16,438
  17,495
  18,596
  19,742
  20,936
  22,179
  23,476
  24,829
  26,241
  27,715
  29,255
  30,864
  32,546
  34,305
  36,146
  38,072
  40,088
  42,199
  44,410
  46,726
  49,153
  51,696
  54,362
  57,157
  60,088
Total equity, $m
  7,560
  8,121
  8,705
  9,312
  9,942
  10,598
  11,280
  11,990
  12,728
  13,498
  14,300
  15,136
  16,008
  16,919
  17,869
  18,862
  19,899
  20,984
  22,118
  23,305
  24,546
  25,846
  27,207
  28,633
  30,126
  31,691
  33,330
  35,049
  36,851
  38,741
Total liabilities and equity, $m
  19,285
  20,718
  22,207
  23,755
  25,363
  27,036
  28,775
  30,586
  32,470
  34,434
  36,479
  38,612
  40,837
  43,160
  45,584
  48,117
  50,763
  53,530
  56,423
  59,451
  62,618
  65,934
  69,406
  73,043
  76,852
  80,844
  85,026
  89,411
  94,008
  98,829
Debt-to-equity ratio
  0.650
  0.710
  0.770
  0.820
  0.870
  0.910
  0.950
  0.980
  1.020
  1.050
  1.080
  1.100
  1.130
  1.150
  1.170
  1.190
  1.210
  1.230
  1.240
  1.260
  1.270
  1.290
  1.300
  1.310
  1.330
  1.340
  1.350
  1.360
  1.370
  1.380
Adjusted equity ratio
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,414
  1,581
  1,754
  1,935
  2,123
  2,318
  2,522
  2,734
  2,955
  3,186
  4,127
  4,378
  4,641
  4,915
  5,202
  5,502
  5,816
  6,145
  6,490
  6,850
  7,228
  7,624
  8,039
  8,475
  8,931
  9,411
  9,913
  10,441
  10,994
  11,576
Depreciation, amort., depletion, $m
  1,191
  1,208
  1,226
  1,245
  1,264
  1,284
  1,305
  1,327
  1,350
  1,373
  438
  464
  491
  519
  548
  578
  610
  643
  678
  714
  752
  792
  834
  878
  924
  971
  1,022
  1,074
  1,130
  1,188
Funds from operations, $m
  2,605
  2,789
  2,981
  3,180
  3,387
  3,602
  3,827
  4,061
  4,305
  4,559
  4,565
  4,842
  5,132
  5,434
  5,750
  6,081
  6,427
  6,789
  7,168
  7,565
  7,980
  8,416
  8,873
  9,353
  9,855
  10,382
  10,935
  11,515
  12,124
  12,763
Change in working capital, $m
  66
  69
  72
  74
  77
  80
  84
  87
  91
  94
  98
  103
  107
  112
  117
  122
  127
  133
  139
  146
  152
  160
  167
  175
  183
  192
  201
  211
  221
  232
Cash from operations, $m
  2,539
  2,720
  2,909
  3,105
  3,309
  3,522
  3,743
  3,974
  4,214
  4,465
  4,467
  4,740
  5,025
  5,322
  5,633
  5,959
  6,299
  6,655
  7,028
  7,419
  7,828
  8,257
  8,706
  9,178
  9,672
  10,190
  10,734
  11,304
  11,903
  12,531
Maintenance CAPEX, $m
  -215
  -232
  -249
  -267
  -285
  -305
  -325
  -346
  -368
  -390
  -414
  -438
  -464
  -491
  -519
  -548
  -578
  -610
  -643
  -678
  -714
  -752
  -792
  -834
  -878
  -924
  -971
  -1,022
  -1,074
  -1,130
New CAPEX, $m
  -493
  -517
  -537
  -558
  -580
  -603
  -627
  -653
  -679
  -708
  -738
  -769
  -802
  -837
  -874
  -913
  -954
  -997
  -1,043
  -1,091
  -1,142
  -1,195
  -1,252
  -1,311
  -1,373
  -1,439
  -1,508
  -1,581
  -1,657
  -1,738
Cash from investing activities, $m
  -708
  -749
  -786
  -825
  -865
  -908
  -952
  -999
  -1,047
  -1,098
  -1,152
  -1,207
  -1,266
  -1,328
  -1,393
  -1,461
  -1,532
  -1,607
  -1,686
  -1,769
  -1,856
  -1,947
  -2,044
  -2,145
  -2,251
  -2,363
  -2,479
  -2,603
  -2,731
  -2,868
Free cash flow, $m
  1,831
  1,972
  2,123
  2,280
  2,444
  2,614
  2,791
  2,975
  3,167
  3,367
  3,316
  3,532
  3,758
  3,994
  4,241
  4,498
  4,767
  5,048
  5,342
  5,650
  5,972
  6,309
  6,662
  7,033
  7,421
  7,828
  8,254
  8,702
  9,171
  9,664
Issuance/(repayment) of debt, $m
  833
  871
  905
  941
  978
  1,017
  1,058
  1,101
  1,146
  1,194
  1,244
  1,297
  1,353
  1,412
  1,474
  1,540
  1,609
  1,682
  1,759
  1,840
  1,926
  2,016
  2,111
  2,211
  2,316
  2,427
  2,543
  2,666
  2,795
  2,931
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  833
  871
  905
  941
  978
  1,017
  1,058
  1,101
  1,146
  1,194
  1,244
  1,297
  1,353
  1,412
  1,474
  1,540
  1,609
  1,682
  1,759
  1,840
  1,926
  2,016
  2,111
  2,211
  2,316
  2,427
  2,543
  2,666
  2,795
  2,931
Total cash flow (excl. dividends), $m
  2,664
  2,843
  3,029
  3,221
  3,422
  3,631
  3,849
  4,076
  4,313
  4,560
  4,559
  4,829
  5,111
  5,406
  5,715
  6,038
  6,376
  6,730
  7,101
  7,490
  7,898
  8,325
  8,773
  9,243
  9,737
  10,254
  10,798
  11,368
  11,966
  12,594
Retained Cash Flow (-), $m
  -537
  -562
  -584
  -607
  -631
  -656
  -682
  -710
  -739
  -770
  -802
  -836
  -872
  -910
  -950
  -993
  -1,037
  -1,085
  -1,134
  -1,187
  -1,242
  -1,300
  -1,361
  -1,425
  -1,493
  -1,565
  -1,640
  -1,719
  -1,802
  -1,889
Prev. year cash balance distribution, $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 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
  2,127
  2,282
  2,445
  2,615
  2,791
  2,975
  3,167
  3,366
  3,574
  3,791
  3,758
  3,993
  4,239
  4,496
  4,764
  5,045
  5,339
  5,646
  5,967
  6,303
  6,656
  7,025
  7,412
  7,818
  8,243
  8,690
  9,158
  9,649
  10,164
  10,705
Discount rate, %
  4.80
  5.04
  5.29
  5.56
  5.83
  6.13
  6.43
  6.75
  7.09
  7.45
  7.82
  8.21
  8.62
  9.05
  9.50
  9.98
  10.48
  11.00
  11.55
  12.13
  12.74
  13.37
  14.04
  14.74
  15.48
  16.25
  17.07
  17.92
  18.82
  19.76
PV of cash for distribution, $m
  2,029
  2,068
  2,094
  2,106
  2,102
  2,083
  2,047
  1,996
  1,929
  1,848
  1,642
  1,549
  1,447
  1,337
  1,221
  1,101
  981
  863
  748
  639
  537
  444
  361
  288
  226
  173
  130
  95
  68
  48
Current shareholders' claim on cash, %
  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 plc (Ireland) (IR)

Valuation Ratios
P/E Ratio 19.8
Price to Sales 2.2
Price to Book 4.4
Price to Tangible Book
Price to Cash Flow 19.5
Price to Free Cash Flow 22.2
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 $15668 million for the last fiscal year's total revenue generated by Ingersoll-Rand plc (Ireland). The default revenue input number comes from 0001 income statement of Ingersoll-Rand plc (Ireland). 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 7.7% 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 4.8%, whose default value for IR is calculated based on our internal credit rating of Ingersoll-Rand plc (Ireland), 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 plc (Ireland).
    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 82.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $784 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 5.4% for Ingersoll-Rand plc (Ireland).

Corporate tax rate of 27% is the nominal tax rate for Ingersoll-Rand plc (Ireland). 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 41.2%.

Life of production assets of 31.2 years is the average useful life of capital assets used in Ingersoll-Rand plc (Ireland) 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 5.5%. 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 - $7022.7 million for Ingersoll-Rand plc (Ireland) - 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 242.130 million for Ingersoll-Rand plc (Ireland) 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 plc (Ireland) at the current share price and the inputted number of shares is $27.3 billion.

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