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Ingersoll Rand Inc. (IR)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$31.67 - $84.02$48.43
Multi-Stage$21.22 - $23.20$22.19
Blended Fair Value$35.31
Current Price$82.62
Upside-57.26%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.080.080.080.020.000.000.000.000.000.00
YoY Growth---0.31%0.00%295.12%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.10%0.09%0.14%0.04%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)545.10
(-) Cash Dividends Paid (M)32.10
(=) Cash Retained (M)513.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)109.0268.1440.88
Cash Retained (M)513.00513.00513.00
(-) Cash Required (M)-109.02-68.14-40.88
(=) Excess Retained (M)403.98444.86472.12
(/) Shares Outstanding (M)403.70403.70403.70
(=) Excess Retained per Share1.001.101.17
LTM Dividend per Share0.080.080.08
(+) Excess Retained per Share1.001.101.17
(=) Adjusted Dividend1.081.181.25
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$31.67$48.43$84.02
Upside / Downside-61.66%-41.38%1.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)545.10580.53618.27658.45701.25746.83769.24
Payout Ratio5.89%22.71%39.53%56.36%73.18%90.00%92.50%
Projected Dividends (M)32.10131.84244.42371.07513.16672.15711.55

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)119.72120.85121.98
Year 2 PV (M)201.52205.35209.23
Year 3 PV (M)277.79285.77293.89
Year 4 PV (M)348.82362.23376.03
Year 5 PV (M)414.86434.89455.70
PV of Terminal Value (M)7,201.887,549.747,910.90
Equity Value (M)8,564.588,958.839,367.74
Shares Outstanding (M)403.70403.70403.70
Fair Value$21.22$22.19$23.20
Upside / Downside-74.32%-73.14%-71.91%

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