If you have ever wondered whether Carrier Global is truly a bargain or just another name in the headlines, you’re in the right place.
The stock has seen notable movement lately, dropping 3.1% over the past week and 9.4% for the month, with a year-to-date return of -23.3% and down 31.0% in the last year. Yet, if you zoom out, it is still up more than 48% over five years.
Recently, Carrier Global has made headlines with its strategic expansion into sustainable building solutions, catching the attention of both industry watchers and environmentally conscious investors. Developments like these could reshape the growth narrative and have contributed to recent volatility in the share price.
Based on our current assessment, Carrier Global scores a 4 out of 6 on key valuation checks, suggesting there are several signals it might be undervalued. We will break down these valuation methods and explore a smarter way to approach fair value throughout the rest of the article.
Find out why Carrier Global’s -31.0% return over the last year is lagging behind its peers.
The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s value. This approach helps investors determine whether the current stock price reflects the real worth of the business based on its ability to generate cash over time.
For Carrier Global, current Free Cash Flow stands at $1.13 Billion. According to analyst forecasts, Free Cash Flow is expected to grow and reach $3.09 Billion by 2028. Beyond the analyst estimates, projections are extrapolated and indicate continued healthy increases in future cash flows throughout the next decade.
Applying the DCF approach, Carrier Global’s estimated fair value is $68.13 per share. This suggests the stock is trading at a 23.1% discount to its intrinsic value based on current forecasts.
Carrier Global currently appears undervalued by the market. This may indicate a potential opportunity for investors looking for growth and value in the building solutions sector.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Carrier Global is undervalued by 23.1%. Track this in your watchlist or portfolio, or discover 926 more undervalued stocks based on cash flows.
CARR Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Carrier Global.
For profitable companies like Carrier Global, the Price-to-Earnings (PE) ratio is a widely preferred valuation metric. It offers a snapshot of how much investors are willing to pay for each dollar of the company’s earnings, making it a fast and useful measure for companies with consistent profits.
It is important to remember that what counts as a “normal” or “fair” PE ratio is not universal. Growth expectations and risk levels can drive meaningful differences. Rapidly growing companies or those perceived as safer often command higher PE ratios, while slower-growing or riskier companies tend to have lower ones.
Carrier Global currently trades at a PE ratio of 32x. This is higher than the Building industry average of 17.3x and above the selected peer average of 28.1x. On the surface, this could suggest that Carrier Global is priced at a premium compared to many of its direct competitors.
Simply Wall St’s proprietary “Fair Ratio” helps place this in context. Rather than just comparing Carrier Global to peers or industry norms, the Fair Ratio weighs factors such as expected growth, profit margins, company size, and business model risks. In Carrier Global’s case, the Fair Ratio is 38.6x, reflecting these company-specific dynamics.
Because Carrier Global’s current PE of 32x is below its Fair Ratio of 38.6x, this suggests the stock is undervalued on a relative basis, even if it looks expensive next to industry and peer averages. The Fair Ratio method gives a more accurate picture, as it is tailored to Carrier’s unique situation rather than broad benchmarks.
Result: UNDERVALUED
NYSE:CARR PE Ratio as at Nov 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1430 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives.
A Narrative is a simple, approachable way to tell the story behind a company’s numbers, showing how your expectations for Carrier Global’s future revenue, earnings, and profit margins shape your view of its fair value.
Rather than just focusing on the raw financial data, Narratives help you connect the dots between a company’s real-world developments, your personal perspective on where it is headed, and what you think the shares are truly worth.
On Simply Wall St’s Community page, which is home to millions of investors worldwide, you can explore or create these dynamic Narratives yourself. Narratives are designed to make investing easier by letting you visualize how financial forecasts, news, and new earnings reports instantly update the share’s fair value, allowing you to make smarter buy and sell decisions as the facts change.
For instance, within Carrier Global’s Narratives, some investors with a bullish outlook see fair value as high as $100 per share, while more cautious users set their estimates closer to $65, demonstrating how Narratives help capture different viewpoints, investment theses, and risk tolerances with full transparency.
Do you think there’s more to the story for Carrier Global? Head over to our Community to see what others are saying!
NYSE:CARR Community Fair Values as at Nov 2025
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.
Companies discussed in this article include CARR.
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