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Ingersoll Rand (IR): Reassessing Valuation After Jerome Guillen Joins the Board

Simply Wall St · 1d ago

Ingersoll Rand (IR) just added former Tesla executive Jerome Guillen to its Board, a governance move that signals fresh thinking on operations, automation, and sustainability. This gives investors another angle on the stock’s long term trajectory.

See our latest analysis for Ingersoll Rand.

The timing is interesting, with today’s 2.32 percent 1 day share price return nudging the stock off year to date weakness. This comes even as the 1 year total shareholder return sits modestly negative and the 3 year total shareholder return still looks robust.

If Guillen’s appointment has you thinking about where the next wave of industrial and automation leaders could come from, it is worth exploring fast growing stocks with high insider ownership for other under the radar opportunities.

With shares still down double digits year to date but trading only a single digit below Wall Street targets, does Ingersoll Rand quietly offer upside from improving execution, or is the market already pricing in the next leg of growth?

Most Popular Narrative Narrative: 7.5% Undervalued

With Ingersoll Rand last closing at $81.12 against a narrative fair value near $87.70, the story leans toward upside if growth delivers.

The company continues building recurring, high margin revenue streams through expansion of aftermarket services and value added lifecycle solutions (aftermarket revenue grew to 37% of total), which increases the stability of net margins and supports long term earnings resilience even if new equipment demand remains variable.

Read the complete narrative.

Want to see why this valuation leans on earnings power, not hype? The narrative quietly bakes in richer margins and faster profit growth than headline revenue suggests. Curious how those moving parts add up to that premium future multiple and fair value target? The full breakdown reveals the numbers behind the confidence.

Result: Fair Value of $87.70 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, prolonged industrial spending slowdowns and missteps in larger acquisitions could challenge the premium multiple and undermine the expected margin expansion story.

Find out about the key risks to this Ingersoll Rand narrative.

Another Angle On Valuation

On earnings, the picture looks less generous. Ingersoll Rand trades on a price to earnings ratio of about 58.8 times, more than double the US Machinery average of 25.3 times and well above its fair ratio of 39.6 times, which points to rich expectations baked into today’s price.

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:IR PE Ratio as at Dec 2025
NYSE:IR PE Ratio as at Dec 2025

Build Your Own Ingersoll Rand Narrative

If you see the story differently or want to test your own assumptions against the numbers, build a custom view in minutes, Do it your way.

A great starting point for your Ingersoll Rand research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.