ALSN Valuation

Allison Transmission Holdings Inc

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81.950

+0.48(0.589%)1D

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 Fair zone, suggesting that its current forward PE ratio of 10.95 is considered Fairly compared with the five-year average of 9.17. The fair price of Allison Transmission Holdings Inc (ALSN) is between 67.16 to 90.21 according to relative valuation methord.

Relative Value

Fair Zone

67.16-90.21

Current Price：81.95

Fair

10.95

Trailing

Forward

7.86

EV/EBITDA

Allison Transmission Holdings Inc. (ALSN) has a current EV/EBITDA of 7.86. The 5-year average EV/EBITDA is 7.41. The thresholds are as follows: Strongly Undervalued below 5.24, Undervalued between 5.24 and 6.32, Fairly Valued between 8.50 and 6.32, Overvalued between 8.50 and 9.59, and Strongly Overvalued above 9.59. The current Forward EV/EBITDA of 7.86 falls within the Historic Trend Line -Fairly Valued range.

9.39

EV/EBIT

Allison Transmission Holdings Inc. (ALSN) has a current EV/EBIT of 9.39. The 5-year average EV/EBIT is 8.90. The thresholds are as follows: Strongly Undervalued below 6.48, Undervalued between 6.48 and 7.69, Fairly Valued between 10.11 and 7.69, Overvalued between 10.11 and 11.32, and Strongly Overvalued above 11.32. The current Forward EV/EBIT of 9.39 falls within the Historic Trend Line -Fairly Valued range.

81.95

Allison Transmission Holdings Inc. (ALSN) has a current PS of 81.95. The 5-year average PS is 2.54. The thresholds are as follows: Strongly Undervalued below -11.80, Undervalued between -11.80 and -4.63, Fairly Valued between 9.71 and -4.63, Overvalued between 9.71 and 16.89, and Strongly Overvalued above 16.89. The current Forward PS of 81.95 falls within the Strongly Overvalued range.

8.05

P/OCF

Allison Transmission Holdings Inc. (ALSN) has a current P/OCF of 8.05. The 5-year average P/OCF is 7.39. The thresholds are as follows: Strongly Undervalued below 3.85, Undervalued between 3.85 and 5.62, Fairly Valued between 9.16 and 5.62, Overvalued between 9.16 and 10.93, and Strongly Overvalued above 10.93. The current Forward P/OCF of 8.05 falls within the Historic Trend Line -Fairly Valued range.

10.28

P/FCF

Allison Transmission Holdings Inc. (ALSN) has a current P/FCF of 10.28. The 5-year average P/FCF is 9.15. The thresholds are as follows: Strongly Undervalued below 5.33, Undervalued between 5.33 and 7.24, Fairly Valued between 11.06 and 7.24, Overvalued between 11.06 and 12.97, and Strongly Overvalued above 12.97. The current Forward P/FCF of 10.28 falls within the Historic Trend Line -Fairly Valued range.

Allison Transmission Holdings Inc (ALSN) has a current Price-to-Book (P/B) ratio of 3.71. Compared to its 3-year average P/B ratio of 4.89 , the current P/B ratio is approximately -24.14% higher. Relative to its 5-year average P/B ratio of 5.19, the current P/B ratio is about -28.54% higher. Allison Transmission Holdings Inc (ALSN) has a Forward Free Cash Flow (FCF) yield of approximately 0.09%. Compared to its 3-year average FCF yield of 9.95%, the current FCF yield is approximately -99.08% lower. Relative to its 5-year average FCF yield of 10.51% , the current FCF yield is about -99.13% lower.

3.71

P/B

Median3y

4.89

Median5y

5.19

0.09

FCF Yield

Median3y

9.95

Median5y

10.51

Competitors Valuation Multiple

The average P/S ratio for ALSN's competitors is 78.68, providing a benchmark for relative valuation. Allison Transmission Holdings Inc Corp (ALSN) exhibits a P/S ratio of 81.95, which is 4.16% 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

ALSN.N

Allison Transmission Holdings Inc

Donaldson Company Inc

Atmus Filtration Technologies Inc

47.90

10.90%

3.94B

Performance Decomposition

Market capitalization of ALSN decreased by 30.84% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.71 to 10.06.

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.

-15.90%

824.00M → 693.00M

Revenue Growth

-18.54%

24.27 → 19.77

Margin Expansion

3.60%

9.71 → 10.06

P/E Change

-30.84%