ALSN PE Ratio & Valuation,Is ALSN Overvalued

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 13.48 is considered Overvalued compared with the five-year average of 9.17. The fair price of Allison Transmission Holdings Inc (ALSN) is between 67.97 to 90.78 according to relative valuation methord. Compared to the current price of 99.84 USD , Allison Transmission Holdings Inc is Overvalued By 9.98%.

Relative Value

Fair Zone

67.97-90.78

Current Price：99.84

9.98%

Overvalued

13.48

9.47

EV/EBITDA

Allison Transmission Holdings Inc. (ALSN) has a current EV/EBITDA of 9.47. 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 9.58, and Strongly Overvalued above 9.58. The current Forward EV/EBITDA of 9.47 falls within the Overvalued range.

11.30

EV/EBIT

Allison Transmission Holdings Inc. (ALSN) has a current EV/EBIT of 11.30. The 5-year average EV/EBIT is 8.90. The thresholds are as follows: Strongly Undervalued below 6.54, Undervalued between 6.54 and 7.72, Fairly Valued between 10.08 and 7.72, Overvalued between 10.08 and 11.26, and Strongly Overvalued above 11.26. The current Forward EV/EBIT of 11.30 falls within the Strongly Overvalued range.

2.86

Allison Transmission Holdings Inc. (ALSN) has a current PS of 2.86. The 5-year average PS is 1.91. The thresholds are as follows: Strongly Undervalued below 0.89, Undervalued between 0.89 and 1.40, Fairly Valued between 2.43 and 1.40, Overvalued between 2.43 and 2.94, and Strongly Overvalued above 2.94. The current Forward PS of 2.86 falls within the Overvalued range.

9.87

P/OCF

Allison Transmission Holdings Inc. (ALSN) has a current P/OCF of 9.87. The 5-year average P/OCF is 7.42. The thresholds are as follows: Strongly Undervalued below 3.88, Undervalued between 3.88 and 5.65, Fairly Valued between 9.18 and 5.65, Overvalued between 9.18 and 10.95, and Strongly Overvalued above 10.95. The current Forward P/OCF of 9.87 falls within the Overvalued range.

12.62

P/FCF

Allison Transmission Holdings Inc. (ALSN) has a current P/FCF of 12.62. The 5-year average P/FCF is 9.19. The thresholds are as follows: Strongly Undervalued below 5.35, Undervalued between 5.35 and 7.27, Fairly Valued between 11.12 and 7.27, Overvalued between 11.12 and 13.04, and Strongly Overvalued above 13.04. The current Forward P/FCF of 12.62 falls within the Overvalued range.

Allison Transmission Holdings Inc (ALSN) has a current Price-to-Book (P/B) ratio of 4.52. Compared to its 3-year average P/B ratio of 4.84 , the current P/B ratio is approximately -6.63% higher. Relative to its 5-year average P/B ratio of 5.15, the current P/B ratio is about -12.14% higher. Allison Transmission Holdings Inc (ALSN) has a Forward Free Cash Flow (FCF) yield of approximately 7.56%. Compared to its 3-year average FCF yield of 9.86%, the current FCF yield is approximately -23.34% lower. Relative to its 5-year average FCF yield of 10.50% , the current FCF yield is about -28.05% lower.

4.52

P/B

Median3y

4.84

Median5y

5.15

7.56

FCF Yield

Median3y

9.86

Median5y

10.50

Competitors Valuation Multiple

The average P/S ratio for ALSN's competitors is 1.85, providing a benchmark for relative valuation. Allison Transmission Holdings Inc Corp (ALSN) exhibits a P/S ratio of 2.86, which is 54.57% above the industry average. Given its robust revenue growth of -15.90%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ALSN decreased by 7.61% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.67 to 12.26.

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

26.83%

9.67 → 12.26

P/E Change

-7.61%

108.06 → 99.84

Mkt Cap Growth

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Frequently Asked Questions

Is Allison Transmission Holdings Inc (ALSN) currently overvalued or undervalued?

What is Allison Transmission Holdings Inc (ALSN) fair value?

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. The fair price of Allison Transmission Holdings Inc (ALSN) is between 67.97 to 90.78 according to relative valuation methord.

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 15 2025?

As of Dec 15 2025, Allison Transmission Holdings Inc (ALSN) has a P/B ratio of 4.52. This indicates that the market values ALSN at 4.52 times its book value.

What is the current FCF Yield for Allison Transmission Holdings Inc (ALSN) as of Dec 15 2025?

As of Dec 15 2025, Allison Transmission Holdings Inc (ALSN) has a FCF Yield of 7.56%. This means that for every dollar of Allison Transmission Holdings Inc’s market capitalization, the company generates 7.56 cents in free cash flow.

What is the current Forward P/E ratio for Allison Transmission Holdings Inc (ALSN) as of Dec 15 2025?

As of Dec 15 2025, Allison Transmission Holdings Inc (ALSN) has a Forward P/E ratio of 13.48. This means the market is willing to pay $13.48 for every dollar of Allison Transmission Holdings Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Allison Transmission Holdings Inc (ALSN) as of Dec 15 2025?

As of Dec 15 2025, Allison Transmission Holdings Inc (ALSN) has a Forward P/S ratio of 2.86. This means the market is valuing ALSN at $2.86 for every dollar of expected revenue over the next 12 months.

ALSN Valuation