TDG Valuation

TransDigm Group Inc

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1607.450

+8.21(0.513%)1D

Overview
Forecast
Valuation
Earnings

TDG Relative Valuation

TDG'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, TDG is overvalued; if below, it's undervalued.

Historical Valuation

TransDigm Group Inc (TDG) is now in the Fair zone, suggesting that its current forward PE ratio of 39.89 is considered Fairly compared with the five-year average of 35.15. The fair price of TransDigm Group Inc (TDG) is between 1210.78 to 1633.88 according to relative valuation methord.

Relative Value

Fair Zone

1210.78-1633.88

Current Price：1607.45

Fair

39.89

Trailing

Forward

22.78

EV/EBITDA

TransDigm Group Inc. (TDG) has a current EV/EBITDA of 22.78. The 5-year average EV/EBITDA is 18.98. The thresholds are as follows: Strongly Undervalued below 14.92, Undervalued between 14.92 and 16.95, Fairly Valued between 21.01 and 16.95, Overvalued between 21.01 and 23.04, and Strongly Overvalued above 23.04. The current Forward EV/EBITDA of 22.78 falls within the Overvalued range.

25.74

EV/EBIT

TransDigm Group Inc. (TDG) has a current EV/EBIT of 25.74. The 5-year average EV/EBIT is 22.28. The thresholds are as follows: Strongly Undervalued below 16.68, Undervalued between 16.68 and 19.48, Fairly Valued between 25.08 and 19.48, Overvalued between 25.08 and 27.88, and Strongly Overvalued above 27.88. The current Forward EV/EBIT of 25.74 falls within the Overvalued range.

9.77

TransDigm Group Inc. (TDG) has a current PS of 9.77. The 5-year average PS is 6.83. The thresholds are as follows: Strongly Undervalued below 4.42, Undervalued between 4.42 and 5.63, Fairly Valued between 8.04 and 5.63, Overvalued between 8.04 and 9.24, and Strongly Overvalued above 9.24. The current Forward PS of 9.77 falls within the Strongly Overvalued range.

33.43

P/OCF

TransDigm Group Inc. (TDG) has a current P/OCF of 33.43. The 5-year average P/OCF is 29.23. The thresholds are as follows: Strongly Undervalued below 20.49, Undervalued between 20.49 and 24.86, Fairly Valued between 33.60 and 24.86, Overvalued between 33.60 and 37.97, and Strongly Overvalued above 37.97. The current Forward P/OCF of 33.43 falls within the Historic Trend Line -Fairly Valued range.

36.02

P/FCF

TransDigm Group Inc. (TDG) has a current P/FCF of 36.02. The 5-year average P/FCF is 32.35. The thresholds are as follows: Strongly Undervalued below 21.34, Undervalued between 21.34 and 26.84, Fairly Valued between 37.85 and 26.84, Overvalued between 37.85 and 43.36, and Strongly Overvalued above 43.36. The current Forward P/FCF of 36.02 falls within the Historic Trend Line -Fairly Valued range.

TransDigm Group Inc (TDG) has a current Price-to-Book (P/B) ratio of -15.94. Compared to its 3-year average P/B ratio of -17.34 , the current P/B ratio is approximately -8.08% higher. Relative to its 5-year average P/B ratio of -14.40, the current P/B ratio is about 10.64% higher. TransDigm Group Inc (TDG) has a Forward Free Cash Flow (FCF) yield of approximately 2.11%. Compared to its 3-year average FCF yield of 2.40%, the current FCF yield is approximately -12.24% lower. Relative to its 5-year average FCF yield of 2.57% , the current FCF yield is about -17.92% lower.

-15.94

P/B

Median3y

-17.34

Median5y

-14.40

2.11

FCF Yield

Median3y

2.40

Median5y

2.57

Competitors Valuation Multiple

The average P/S ratio for TDG's competitors is 4.40, providing a benchmark for relative valuation. TransDigm Group Inc Corp (TDG) exhibits a P/S ratio of 9.77, which is 122.03% above the industry average. Given its robust revenue growth of 12.04%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

General Dynamics Corp

Northrop Grumman Corp

Performance Decomposition

Market capitalization of TDG increased by 24.20% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.92B to 2.15B.

The secondary factor is the P/E Change, contributed 6.32%to the performance.

Overall, the performance of TDG in the past 1 year is driven by Revenue Growth. Which is more sustainable.

12.04%

1.92B → 2.15B

Revenue Growth

5.84%

21.05 → 22.28

Margin Expansion

6.32%

50.98 → 54.20

P/E Change

24.20%