Ingersoll Rand

Methodology

Ingersoll Rand's industrial equipment business generates moderately cyclical earnings from compressed air systems, pumps, and precision flow control products. The company's recurring aftermarket service revenue provides stability. This calculation works reasonably well when normalizing for industrial cycles, with the services and parts business creating more predictable cash flows than new equipment sales.

Methodology

Ingersoll Rand typically commands moderate PEG ratios reflecting steady growth from industrial equipment and emphasis on recurring aftermarket revenue. The company's portfolio simplification and operational improvements support consistent execution. Compare to other diversified industrials to assess whether Ingersoll Rand's aftermarket mix and margin profile justify valuations relative to more cyclical equipment manufacturers.

Methodology

Ingersoll Rand pays a modest dividend as management balances capital returns with strategic investments and debt management. The company generates strong cash flows from industrial equipment and services. PEGY provides some additional context, though the primary value drivers remain operational improvement and expanding high-margin aftermarket service penetration.