IR is now overvalued and could go down -24%

Based on our analysis, Ingersoll Rand has received an overvalued rating of 2 out of 5 stars from Cashu. Several key financial ratios indicate that the company may be overvalued compared to its sector peers. One significant metric is the price-to-earnings (PE) ratio, which stands at 39.41, significantly higher than the sector average of 19.94. A high PE ratio often suggests that a company is overvalued or that investors are expecting high growth rates in the future, which may not be justified. Additionally, Ingersoll Rand's price-to-book (PB) ratio is 3.58, compared to the sector average of 2.54. The PB ratio measures a company's market value relative to its book value, and a higher ratio may indicate that the stock is overpriced relative to its actual assets. Another area of concern is the dividend yield, which is only 0.10, while the sector average is 1.70. A low dividend yield may deter income-focused investors, suggesting that the company is not returning enough value to shareholders through dividends. Lastly, while Ingersoll Rand demonstrates strong profitability with a net profit margin of 11.59 and a return on equity (ROE) of 8.24, these metrics alone do not offset the high valuation ratios. In summary, while Ingersoll Rand shows strong profitability, its high valuation ratios compared to the sector indicate it may be overvalued. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.