Stock Price & Analysis

Based on the analysis, TDG stock is currently trading near key resistance levels with mixed technical indicators. Hold the stock as the current price is near resistance, and wait for a breakout above 1368 for a potential buy signal.

The price prediction for TDG stock in 2025 is approximately $1380 per share. This forecast is based on the stock's current price of $1355, Fibonacci resistance levels around $1368, and analyst upgrades with a price target of $1500. The stock's strong earnings and increased defense spending support this outlook, though it may face resistance near $1368.

The S1 support level for TDG Stock is $1341.04 ,The R1 resistant level for TDG Stock is $1401.74.

As of the end of day on 2025-04-02, the price of TDG Stock was $1394.5.

The target price for TDG Stock according to analyst rating is 1,535, with the highest price target at 1,600 and the lowest at 1,348. Analysts have a Strong Buy rating on TDG Stock overall.

The market cap of TDG is $78.4B.

Analysis and Insights

To determine whether TDG is overvalued, we analyze its valuation metrics, analyst sentiment, and industry comparisons.

Valuation Metrics:

TDG's current valuation metrics indicate a premium relative to industry peers:

• P/E Ratio: TDG's P/E ratio ranges from 46.27 to 52.75, significantly higher than the industry average, suggesting elevated valuations.
• EV/EBITDA: The EV/EBITDA ratio of 22.91 to 23.86 indicates a premium, as lower ratios are generally more favorable.
• P/S Ratio: The P/S ratio of 9.19 to 9.84 is high, signaling that investors are paying a significant amount per dollar of revenue.
• P/B Ratio: The P/B ratio is 0, which may reflect high intangible assets or other factors affecting book value.
• Dividend Yield: TDG offers no dividend, focusing on reinvestment rather than returning cash to shareholders.

Analyst Sentiment:

Recent analyst actions show mixed sentiment:

• Upgrades: UBS upgraded TDG to Strong Buy with a $1,595 price target, citing growth potential.
• Downgrades: Barclays and Deutsche Bank downgraded TDG, reflecting concerns about valuation and market positioning.

Industry Comparison:

Compared to peers like Howmet Aerospace (HWM) and Northrop Grumman (NOC), TDG's valuation appears stretched. HWM has shown stronger growth, while NOC offers stability, but TDG's metrics don't justify a significant premium.

Conclusion:

Based on high valuation metrics, mixed analyst sentiment, and industry comparisons, TDG appears overvalued. While some analysts are optimistic, current metrics suggest caution. Investors should consider waiting for a correction or more favorable entry point.

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on all commercial and military aircraft in service. The Company's segments include Power & Control, Airframe and Non-aviation. The Power & Control segment develops, produces and markets systems and components that predominately provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. Its product offerings include mechanical/electro-mechanical actuators and controls. The Airframe segment develops, produces and markets systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. Its product offerings include engineered latching and locking devices, and engineered rods. The Non-aviation segment develops, produces and markets products for non-aviation markets. Its products include belts and safety restraints for ground transportation applications.

Price Prediction for TDG Stock by 2030

Based on current trends and analysis, TDG stock is predicted to reach $2,500 by 2030. This projection is supported by the company's strong growth prospects in the aerospace and defense industry, its ability to deploy capital effectively, and positive analyst sentiment.

TDG has a total of 15500 employees.