TDG PE Ratio & Valuation,Is TDG Overvalued

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 35.39 is considered Fairly compared with the five-year average of 33.95. The fair price of TransDigm Group Inc (TDG) is between 1204.41 to 1529.38 according to relative valuation methord.

Relative Value

Fair Zone

1204.41-1529.38

Current Price：1375.73

Fair

35.39

19.94

EV/EBITDA

TransDigm Group Inc. (TDG) has a current EV/EBITDA of 19.94. The 5-year average EV/EBITDA is 18.83. The thresholds are as follows: Strongly Undervalued below 14.97, Undervalued between 14.97 and 16.90, Fairly Valued between 20.77 and 16.90, Overvalued between 20.77 and 22.70, and Strongly Overvalued above 22.70. The current Forward EV/EBITDA of 19.94 falls within the Historic Trend Line -Fairly Valued range.

22.58

EV/EBIT

TransDigm Group Inc. (TDG) has a current EV/EBIT of 22.58. The 5-year average EV/EBIT is 21.80. The thresholds are as follows: Strongly Undervalued below 17.13, Undervalued between 17.13 and 19.46, Fairly Valued between 24.13 and 19.46, Overvalued between 24.13 and 26.46, and Strongly Overvalued above 26.46. The current Forward EV/EBIT of 22.58 falls within the Historic Trend Line -Fairly Valued range.

7.70

TransDigm Group Inc. (TDG) has a current PS of 7.70. The 5-year average PS is 6.99. The thresholds are as follows: Strongly Undervalued below 4.60, Undervalued between 4.60 and 5.80, Fairly Valued between 8.19 and 5.80, Overvalued between 8.19 and 9.39, and Strongly Overvalued above 9.39. The current Forward PS of 7.70 falls within the Historic Trend Line -Fairly Valued range.

30.91

P/OCF

TransDigm Group Inc. (TDG) has a current P/OCF of 30.91. The 5-year average P/OCF is 28.82. The thresholds are as follows: Strongly Undervalued below 20.73, Undervalued between 20.73 and 24.78, Fairly Valued between 32.87 and 24.78, Overvalued between 32.87 and 36.91, and Strongly Overvalued above 36.91. The current Forward P/OCF of 30.91 falls within the Historic Trend Line -Fairly Valued range.

34.68

P/FCF

TransDigm Group Inc. (TDG) has a current P/FCF of 34.68. The 5-year average P/FCF is 31.75. The thresholds are as follows: Strongly Undervalued below 22.81, Undervalued between 22.81 and 27.28, Fairly Valued between 36.22 and 27.28, Overvalued between 36.22 and 40.68, and Strongly Overvalued above 40.68. The current Forward P/FCF of 34.68 falls within the Historic Trend Line -Fairly Valued range.

TransDigm Group Inc (TDG) has a current Price-to-Book (P/B) ratio of -7.91. Compared to its 3-year average P/B ratio of -17.56 , the current P/B ratio is approximately -54.97% higher. Relative to its 5-year average P/B ratio of -14.77, the current P/B ratio is about -46.48% higher. TransDigm Group Inc (TDG) has a Forward Free Cash Flow (FCF) yield of approximately 2.37%. Compared to its 3-year average FCF yield of 2.38%, the current FCF yield is approximately -0.25% lower. Relative to its 5-year average FCF yield of 2.43% , the current FCF yield is about -2.20% lower.

-7.91

P/B

Median3y

-17.56

Median5y

-14.77

2.37

FCF Yield

Median3y

2.38

Median5y

2.43

Competitors Valuation Multiple

The average P/S ratio for TDG's competitors is 4.26, providing a benchmark for relative valuation. TransDigm Group Inc Corp (TDG) exhibits a P/S ratio of 7.70, which is 80.71% above the industry average. Given its robust revenue growth of 11.48%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TDG increased by 2.36% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 21.36 to 24.99.

The secondary factor is the Revenue Growth, contributed 11.48%to the performance.

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

11.48%

2.19B → 2.44B

Revenue Growth

16.99%

21.36 → 24.99

Margin Expansion

-26.11%

57.35 → 42.37

P/E Change

2.36%

1.35K → 1.39K

Mkt Cap Growth

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Frequently Asked Questions

Is TransDigm Group Inc (TDG) currently overvalued or undervalued?

What is TransDigm Group Inc (TDG) fair value?

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. The fair price of TransDigm Group Inc (TDG) is between 1204.41 to 1529.38 according to relative valuation methord.

How does TDG's valuation metrics compare to the industry average?

What is the current P/B ratio for TransDigm Group Inc (TDG) as of Jan 08 2026?

As of Jan 08 2026, TransDigm Group Inc (TDG) has a P/B ratio of -7.91. This indicates that the market values TDG at -7.91 times its book value.

What is the current FCF Yield for TransDigm Group Inc (TDG) as of Jan 08 2026?

As of Jan 08 2026, TransDigm Group Inc (TDG) has a FCF Yield of 2.37%. This means that for every dollar of TransDigm Group Inc’s market capitalization, the company generates 2.37 cents in free cash flow.

What is the current Forward P/E ratio for TransDigm Group Inc (TDG) as of Jan 08 2026?

As of Jan 08 2026, TransDigm Group Inc (TDG) has a Forward P/E ratio of 35.39. This means the market is willing to pay $35.39 for every dollar of TransDigm Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for TransDigm Group Inc (TDG) as of Jan 08 2026?

As of Jan 08 2026, TransDigm Group Inc (TDG) has a Forward P/S ratio of 7.70. This means the market is valuing TDG at $7.70 for every dollar of expected revenue over the next 12 months.

TDG Valuation