TDG Valuation

TransDigm Group Inc

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1300.000

-8.51(-0.650%)1D

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 33.60 is considered Fairly compared with the five-year average of 34.50. The fair price of TransDigm Group Inc (TDG) is between 1298.37 to 1673.93 according to relative valuation methord.

Relative Value

Fair Zone

1298.37-1673.93

Current Price：1300.00

Fair

33.60

Trailing

Forward

18.70

EV/EBITDA

TransDigm Group Inc. (TDG) has a current EV/EBITDA of 18.70. The 5-year average EV/EBITDA is 18.94. The thresholds are as follows: Strongly Undervalued below 14.87, Undervalued between 14.87 and 16.91, Fairly Valued between 20.97 and 16.91, Overvalued between 20.97 and 23.01, and Strongly Overvalued above 23.01. The current Forward EV/EBITDA of 18.70 falls within the Historic Trend Line -Fairly Valued range.

21.02

EV/EBIT

TransDigm Group Inc. (TDG) has a current EV/EBIT of 21.02. The 5-year average EV/EBIT is 22.05. The thresholds are as follows: Strongly Undervalued below 16.74, Undervalued between 16.74 and 19.39, Fairly Valued between 24.71 and 19.39, Overvalued between 24.71 and 27.37, and Strongly Overvalued above 27.37. The current Forward EV/EBIT of 21.02 falls within the Historic Trend Line -Fairly Valued range.

1308.51

TransDigm Group Inc. (TDG) has a current PS of 1308.51. The 5-year average PS is 10.15. The thresholds are as follows: Strongly Undervalued below -118.97, Undervalued between -118.97 and -54.41, Fairly Valued between 74.71 and -54.41, Overvalued between 74.71 and 139.27, and Strongly Overvalued above 139.27. The current Forward PS of 1308.51 falls within the Strongly Overvalued range.

27.29

P/OCF

TransDigm Group Inc. (TDG) has a current P/OCF of 27.29. The 5-year average P/OCF is 28.93. The thresholds are as follows: Strongly Undervalued below 20.57, Undervalued between 20.57 and 24.75, Fairly Valued between 33.11 and 24.75, Overvalued between 33.11 and 37.29, and Strongly Overvalued above 37.29. The current Forward P/OCF of 27.29 falls within the Historic Trend Line -Fairly Valued range.

32.12

P/FCF

TransDigm Group Inc. (TDG) has a current P/FCF of 32.12. The 5-year average P/FCF is 31.81. The thresholds are as follows: Strongly Undervalued below 22.67, Undervalued between 22.67 and 27.24, Fairly Valued between 36.38 and 27.24, Overvalued between 36.38 and 40.96, and Strongly Overvalued above 40.96. The current Forward P/FCF of 32.12 falls within the Historic Trend Line -Fairly Valued range.

TransDigm Group Inc (TDG) has a current Price-to-Book (P/B) ratio of -14.73. Compared to its 3-year average P/B ratio of -17.86 , the current P/B ratio is approximately -17.56% higher. Relative to its 5-year average P/B ratio of -14.91, the current P/B ratio is about -1.21% higher. TransDigm Group Inc (TDG) has a Forward Free Cash Flow (FCF) yield of approximately 2.58%. Compared to its 3-year average FCF yield of 2.38%, the current FCF yield is approximately 8.52% lower. Relative to its 5-year average FCF yield of 2.46% , the current FCF yield is about 4.97% lower.

-14.73

P/B

Median3y

-17.86

Median5y

-14.91

2.58

FCF Yield

Median3y

2.38

Median5y

2.46

Competitors Valuation Multiple

The average P/S ratio for TDG's competitors is 607.94, providing a benchmark for relative valuation. TransDigm Group Inc Corp (TDG) exhibits a P/S ratio of 1308.51, which is 115.24% above the industry average. Given its robust revenue growth of 9.34%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Northrop Grumman Corp

Performance Decomposition

Market capitalization of TDG increased by 3.75% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.05B to 2.24B.

The secondary factor is the Margin Expansion, contributed -2.17%to the performance.

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

9.34%

2.05B → 2.24B

Revenue Growth

-2.17%

22.53 → 22.04

Margin Expansion

-3.42%

44.96 → 43.42

P/E Change

3.75%