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Ingersoll Rand DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.1383%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 4.5%

Historical Data

Revenue growth in the last 10 years (CAGR): 13.02%

Earnings growth in the last 10 years (CAGR): / (from -351.2 Million to + 0.8229 Billion)

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 17.55%

Future Assumptions

End of Year FCF growth: 8%

Growth until end of 2026: 16%

Growth until end of 2034: 8%

Perpetual growth: 3.2%

Net Debt: 3.234B

Outstanding Stock Options Present Value Assumption: $0.198B

Restricted Stock Units Present Value Assumption: $0.197B

Stock Valuation based on these assumptions: $91

Last update 06/02/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Ingersoll Rand (IR) and I don’t plan to add a position in the coming days.