Ingersoll Rand Inc. (IR) — Fair Value Analysis

Base-case fair value (P50): $85.43 · Current price: $70.35 · Verdict: Undervalued

The Verdict on IR

Ingersoll Rand (IR) appears undervalued based on our latest Monte Carlo simulations. With a current price of $73.39, IR trades significantly below its median fair value (P50) of $88.15. This represents a substantial +20.1% upside potential from current levels. Our analysis, derived from thousands of forward-looking scenarios, indicates a robust undervaluation for the Industrials sector component, suggesting the market may not be fully appreciating IR's intrinsic worth at present.

How IR stacks up against Industrials

While Ingersoll Rand exhibits an attractive valuation gap, its operational and financial health profile registers as "average" when benchmarked against its Industrials sector peers. This average quality tier suggests that while there is clear upside to the $88.15 median fair value from the current $73.39, investors should factor in the company’s relative standing within its competitive landscape. The +20.1% difference between the current price and the P50 is compelling, even for a company performing consistently with sector averages.

What this means for investors

For investors, the current valuation of Ingersoll Rand presents a distinct opportunity. The $73.39 share price relative to the $88.15 median fair value suggests considerable room for appreciation, targeting that +20.1% potential. While we highlight the median fair value, FairCurve's complete Monte Carlo distribution offers a broader perspective, outlining both upside and downside scenarios without specific dollar values. To delve deeper into IR's full bear and bull-case distribution and track its fair value as new fundamentals are released, sign up for a FairCurve account.