Carrier Global

Methodology

Carrier Global's HVAC, refrigeration, and fire safety equipment business has moderate cyclicality tied to commercial construction and residential replacement demand. The company's mix of new equipment sales and recurring service/parts revenue provides some stability. This fair value calculation works reasonably for Carrier given its split between cyclical new construction and steadier aftermarket, though commercial building activity significantly impacts near-term results.

Methodology

Carrier's PEG ratio typically ranges from 1.5-2.5, reflecting moderate valuations for a building products company with steady aftermarket revenue offsetting new construction cyclicality. The company's spin-off from United Technologies and portfolio optimization create potential for margin improvement. Compare to other HVAC and building product companies to assess whether Carrier's aftermarket exposure and operational improvements justify current multiples.

Methodology

Carrier's dividend yield (around 1.5-2.0%) provides modest income alongside steady growth from HVAC market trends and building efficiency upgrades. The company balances capital allocation between dividends, share buybacks, and growth investments. PEGY better captures the total return proposition for Carrier as a quality industrial with balanced growth and income characteristics in essential building systems.