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. This assessment is primarily driven by its financial ratios, which indicate that the company's stock may be trading at a premium compared to its industry peers. One significant concern is the Price-to-Earnings (PE) ratio, which stands at 41.86, while the sector average is just 19.94. A high PE ratio suggests that investors are willing to pay more for each dollar of earnings, potentially indicating overvaluation. Additionally, the Price-to-Book (PB) ratio for Ingersoll Rand is 3.58 compared to the sector’s 2.54, implying that the stock price is significantly higher than the company's net asset value, which may not be justified. While Ingersoll Rand demonstrates a strong net profit margin of 11.59, far exceeding the sector average of 0.75, this positive aspect is overshadowed by its relatively low dividend yield of 0.09, compared to the sector average of 1.70. This low yield may deter income-focused investors seeking reliable returns. Furthermore, the Return on Assets (ROA) ratio is 4.66, significantly higher than the sector average of 0.07, but the Return on Equity (ROE) is 8.24, also above the sector’s 1.94, indicating that while the company is efficient in generating profits, the higher valuations may not be justified given the overall investment landscape. 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.