Ingersoll Rand is trading at a premium to peers with modest recent revenue growth and a near-term liquidity item on the balance sheet.
Shares barely budged this week, last close $84.29, but the valuation stats are loud: a P/E of 58.1x and EV/sales 4.3x on a $33.8B market cap and $32.6B enterprise value.
Valuation snapshot
"P/E 58.1x" (Ingersoll Rand / facts)
The company recorded revenue of $7.7B in 2025, up 5.7% year over year, and management points to higher orders driven by organic volume, acquisitions, and favorable currencies.
"The increase in Segment Orders was due to higher organic orders of $30.4 million or 3.9%, acquisitions of $19.0 million or 2.5%, and the favorable impact of foreign currencies of $18.9 million or 2.4%." (Ingersoll Rand / 10-Q 2026-07-31)
Those items are cited in the bullish case: filings show demand signals and operating cash flow covering net income 2.33x in the latest annual period.
Profits showed compression: operating margin dropped from 18.0% in 2024 to 15.0% in 2025, and net margin fell from 11.6% to 7.6% over the same span. The filing also notes some one‑time recoveries and higher restructuring charges.
"The decrease was primarily due to the recovery of acquisition related losses, net of $25.0 million in the 2026 period, lower acquisition and other transaction related expenses, net of $10.7 million, lower foreign currency transaction losses, net of $7.9 million, partially offset by higher restructuring charges of $3.4 million." (Ingersoll Rand / 10-Q 2026-07-31)
There is also a near-term debt timing item on the balance sheet. Management spelled out the balance-sheet shifts and why liquidity is a headline item.
"Liquidity A substantial portion of our liquidity needs arise from debt service requirements, and from the ongoing cost of operations, working capital and capital expenditures. (In millions) June 30, 2026 December 31, 2025 Cash and cash equivalents $ 1,173.5 $ 1,248.8 Short-term borrowings and current maturities of long-term debt $ 699.8 $ 1.4 Long-term debt 4,068.7 4,783.3 Total debt $ 4,768.5 $ 4,784.7 Short-term borrowings and current maturities of long-term debt increased to $699.8 million at June 30, 2026 from $1.4 million at December 31, 2025 primarily due to the reclassification of the Company's 2027 Notes, which will mature in the second quarter of 2027." (Ingersoll Rand / 10-Q 2026-07-31)
cash about $1.17B, total debt $4.7685B, and almost $700M sits in the near‑term bucket because a 2027 note was reclassified. That creates a discrete refinancing timeline on the books.
Put the pieces together and you get the story driving valuation sensitivity. The company’s own scenario framework uses the same exit multiple for the bullish and base cases (58.1x) and a much lower multiple for the downside (39.6x), which makes the gap between outcomes hinge largely on how the market prices the business next time around.
Demand and cash generation support the upside; margin compression, restructuring charges, and the near‑term debt reclassification weigh on the downside. The market price implies a premium, and outcomes will depend on whether margins and the balance sheet improve.
Short-term borrowings increased to $699.8 million after reclassifying the 2027 notes; cash $1,173.5 million and total debt $4,768.5 million as reported in the 10-Q (Ingersoll Rand / 10-Q 2026-07-31).