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TransDigm Group Incorporated — Intrinsic Value & Fair Price

TDG
NYSEIndustrialsAerospace & DefenseCIK 0001260221transdigm.comAbout TDG
Last close · Oct 16, 20261,139.34+5.10 (+0.45%)
Market cap$63.0B
Model value · DCF · Perpetuity growth · 5y
1,484.37
TransDigm Group closed at $1,139.34 — undervalued by 23% vs model.
685.23the model's range3,495.02

DCF · Perpetuity growth · 5y leads for profitable growth — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
206.30 – 4,983.77
Wall St. target
1,405.00 19% below
Below model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

none in the last 12 months
Last dividend
$90.00
Ex-date Sep 2, 2025, paid Sep 12, 2025. No dividend with a later ex-date as of Oct 16, 2026.
Dividends per share, a year at a time, to the last
$32.50Dec ’19$18.50Aug ’22$35.00Nov ’23$75.00Oct ’24$90.00Sep ’25
Every payment, with ex-dates

Research on TDG

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How it is valued

Valued asProfitable Growth
Moderate growth (~16% recent)High profitability (23% net margin)Moderately volatile earningsHigh leverage (D/E 5.0x)
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
35.5×
EV / EBITDA
19.6×
FCF yield
2.7%
Dividend yield, TTM
0.00%
Beta
0.94
Cost of capital (WACC)
7.45%
On the lists: #40 Near 52-week lows
Full financials

Analyst actions

third-party, quoted
10-16Morgan Stanley · target1,300.00
10-15RBC Capital · target1,200.00
10-12Goldman Sachs · target1,745.00
08-05Stifel · “Hold” from “Buy”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label

The weekly

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About TransDigm Group

TransDigm Group Incorporated is a global aerospace enterprise specializing in the development, manufacturing, and distribution of a wide array of aircraft components. Operating across the United States and internationally, its business is structured around three distinct divisions. The Power & Control division focuses on critical systems, providing solutions such as electromechanical actuators and control mechanisms, engine ignition and related technologies, precision pumps and valves, power regulation equipment, specialized electric motors and generators, energy storage units, data communication and power management systems, diverse sensors, switching gear, and material handling equipment including hoists and cargo systems. This segment caters to a broad clientele, including engine and power system manufacturers, airlines, independent maintenance providers, governmental defense agencies, and aircraft repair facilities. The Airframe segment delivers structural and interior components. Its offerings encompass custom latching and locking mechanisms, structural rods and connectors, resilient sealing solutions, cockpit safety and display units, advanced audio, radio, and antenna technologies, restroom facilities, passenger safety restraints, bespoke interior panels and associated parts, thermal management and insulation products, illumination and control systems, and parachutes. Its customer base includes airframe constructors, cabin system integrators, commercial airlines, third-party maintenance organizations, military procurement offices, and overhaul centers. Beyond aviation, the Non-Aviation segment addresses diverse industrial needs. It supplies safety harnesses for ground vehicles, electromechanical actuators for space vehicles, hydraulic and electromechanical actuators and fuel valves for terrestrial gas turbines, specialized refueling systems for heavy machinery in sectors like mining and construction, and sophisticated turbine controls for the energy and petrochemical industries. This segment's clients span suppliers of off-road vehicles and their subsystems, manufacturers of child safety seats, providers of satellite and space systems, and producers of heavy industrial equipment. Established in 1993, TransDigm Group Incorporated maintains its headquarters in Cleveland, Ohio.

CEO
Michael J. Lisman
Headquarters
Cleveland, OH
Employees
16,500
IPO
2006-03-15
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.