ALSN Relative Valuation
ALSN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ALSN is overvalued; if below, it's undervalued.
Historical Valuation
Allison Transmission Holdings Inc (ALSN) is now in the Overvalued zone, suggesting that its current forward PE ratio of 12.26 is considered Overvalued compared with the five-year average of 9.17. The fair price of Allison Transmission Holdings Inc (ALSN) is between 66.98 to 89.69 according to relative valuation methord. Compared to the current price of 90.52 USD , Allison Transmission Holdings Inc is Overvalued By 0.93%.
Relative Value
Fair Zone
66.98-89.69
Current Price：90.52
0.93%
Overvalued
12.25
PE
1Y
3Y
5Y
Trailing
Forward
8.76
EV/EBITDA
Allison Transmission Holdings Inc. (ALSN) has a current EV/EBITDA of 8.76. The 5-year average EV/EBITDA is 7.42. The thresholds are as follows: Strongly Undervalued below 5.26, Undervalued between 5.26 and 6.34, Fairly Valued between 8.50 and 6.34, Overvalued between 8.50 and 9.57, and Strongly Overvalued above 9.57. The current Forward EV/EBITDA of 8.76 falls within the Overvalued range.
10.44
EV/EBIT
Allison Transmission Holdings Inc. (ALSN) has a current EV/EBIT of 10.44. The 5-year average EV/EBIT is 8.90. The thresholds are as follows: Strongly Undervalued below 6.53, Undervalued between 6.53 and 7.72, Fairly Valued between 10.08 and 7.72, Overvalued between 10.08 and 11.27, and Strongly Overvalued above 11.27. The current Forward EV/EBIT of 10.44 falls within the Overvalued range.
2.60
PS
Allison Transmission Holdings Inc. (ALSN) has a current PS of 2.60. The 5-year average PS is 1.91. The thresholds are as follows: Strongly Undervalued below 0.90, Undervalued between 0.90 and 1.40, Fairly Valued between 2.42 and 1.40, Overvalued between 2.42 and 2.93, and Strongly Overvalued above 2.93. The current Forward PS of 2.60 falls within the Overvalued range.
8.95
P/OCF
Allison Transmission Holdings Inc. (ALSN) has a current P/OCF of 8.95. The 5-year average P/OCF is 7.41. The thresholds are as follows: Strongly Undervalued below 3.89, Undervalued between 3.89 and 5.65, Fairly Valued between 9.17 and 5.65, Overvalued between 9.17 and 10.93, and Strongly Overvalued above 10.93. The current Forward P/OCF of 8.95 falls within the Historic Trend Line -Fairly Valued range.
11.44
P/FCF
Allison Transmission Holdings Inc. (ALSN) has a current P/FCF of 11.44. The 5-year average P/FCF is 9.18. The thresholds are as follows: Strongly Undervalued below 5.36, Undervalued between 5.36 and 7.27, Fairly Valued between 11.10 and 7.27, Overvalued between 11.10 and 13.01, and Strongly Overvalued above 13.01. The current Forward P/FCF of 11.44 falls within the Overvalued range.
Allison Transmission Holdings Inc (ALSN) has a current Price-to-Book (P/B) ratio of 4.10. Compared to its 3-year average P/B ratio of 4.85 , the current P/B ratio is approximately -15.57% higher. Relative to its 5-year average P/B ratio of 5.16, the current P/B ratio is about -20.56% higher. Allison Transmission Holdings Inc (ALSN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 9.90%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 10.51% , the current FCF yield is about -100.00% lower.
4.09
P/B
Median3y
4.85
Median5y
5.16
8.34
FCF Yield
Median3y
9.90
Median5y
10.51
Competitors Valuation Multiple
The average P/S ratio for ALSN's competitors is , providing a benchmark for relative valuation. Allison Transmission Holdings Inc Corp (ALSN) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -15.90%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ALSN decreased by 16.30% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.40 to 11.10.
The secondary factor is the Revenue Growth, contributed -15.90%to the performance.
Overall, the performance of ALSN in the past 1 year is driven by P/E Change. Which is more unsustainable.
People Also Watch
FAQ
Is Allison Transmission Holdings Inc (ALSN) currently overvalued or undervalued?
What is Allison Transmission Holdings Inc (ALSN) fair value?
How does ALSN's valuation metrics compare to the industry average?
What is the current P/B ratio for Allison Transmission Holdings Inc (ALSN) as of Dec 05 2025?
What is the current FCF Yield for Allison Transmission Holdings Inc (ALSN) as of Dec 05 2025?
What is the current Forward P/E ratio for Allison Transmission Holdings Inc (ALSN) as of Dec 05 2025?