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 34.84 is considered Fairly compared with the five-year average of 34.25. The fair price of TransDigm Group Inc (TDG) is between 1183.68 to 1540.28 according to relative valuation methord.
Relative Value
Fair Zone
1183.68-1540.28
Current Price：1360.10
Fair
34.84
PE
1Y
3Y
5Y
Trailing
Forward
19.78
EV/EBITDA
TransDigm Group Inc. (TDG) has a current EV/EBITDA of 19.78. The 5-year average EV/EBITDA is 18.89. The thresholds are as follows: Strongly Undervalued below 14.91, Undervalued between 14.91 and 16.90, Fairly Valued between 20.87 and 16.90, Overvalued between 20.87 and 22.86, and Strongly Overvalued above 22.86. The current Forward EV/EBITDA of 19.78 falls within the Historic Trend Line -Fairly Valued range.
22.31
EV/EBIT
TransDigm Group Inc. (TDG) has a current EV/EBIT of 22.31. The 5-year average EV/EBIT is 21.91. The thresholds are as follows: Strongly Undervalued below 16.90, Undervalued between 16.90 and 19.41, Fairly Valued between 24.42 and 19.41, Overvalued between 24.42 and 26.93, and Strongly Overvalued above 26.93. The current Forward EV/EBIT of 22.31 falls within the Historic Trend Line -Fairly Valued range.
7.62
PS
TransDigm Group Inc. (TDG) has a current PS of 7.62. The 5-year average PS is 6.98. The thresholds are as follows: Strongly Undervalued below 4.59, Undervalued between 4.59 and 5.79, Fairly Valued between 8.18 and 5.79, Overvalued between 8.18 and 9.37, and Strongly Overvalued above 9.37. The current Forward PS of 7.62 falls within the Historic Trend Line -Fairly Valued range.
30.57
P/OCF
TransDigm Group Inc. (TDG) has a current P/OCF of 30.57. The 5-year average P/OCF is 28.91. The thresholds are as follows: Strongly Undervalued below 20.68, Undervalued between 20.68 and 24.79, Fairly Valued between 33.02 and 24.79, Overvalued between 33.02 and 37.14, and Strongly Overvalued above 37.14. The current Forward P/OCF of 30.57 falls within the Historic Trend Line -Fairly Valued range.
34.30
P/FCF
TransDigm Group Inc. (TDG) has a current P/FCF of 34.30. The 5-year average P/FCF is 31.82. The thresholds are as follows: Strongly Undervalued below 22.76, Undervalued between 22.76 and 27.29, Fairly Valued between 36.34 and 27.29, Overvalued between 36.34 and 40.87, and Strongly Overvalued above 40.87. The current Forward P/FCF of 34.30 falls within the Historic Trend Line -Fairly Valued range.
TransDigm Group Inc (TDG) has a current Price-to-Book (P/B) ratio of -7.78. Compared to its 3-year average P/B ratio of -17.57 , the current P/B ratio is approximately -55.69% higher. Relative to its 5-year average P/B ratio of -14.77, the current P/B ratio is about -47.30% higher. TransDigm Group Inc (TDG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.38%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.44% , the current FCF yield is about -100.00% lower.
-7.78
P/B
Median3y
-17.57
Median5y
-14.77
2.40
FCF Yield
Median3y
2.38
Median5y
2.44
Competitors Valuation Multiple
The average P/S ratio for TDG's competitors is 2.57, providing a benchmark for relative valuation. TransDigm Group Inc Corp (TDG) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 11.48%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TDG increased by 7.32% 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.
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