--- title: TransDigm Group (TDG) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/tdg ticker: TDG as_of: 2026-10-17 sector: Industrials industry: Aerospace & Defense --- # TransDigm Group (TDG) TransDigm Group (TDG) closed at $1,139.34 on Oct 16, 2026, undervalued by 23% vs its model value of $1,484.37 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $1,139.34 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $1,484.37 | | Price vs model | undervalued by 23% vs model | | Range of that model | $685.23 – $3,495.02 | | Market value | $63.0B | | P/E (fiscal 2025) | 35.5 | | Net margin (fiscal 2025) | 23.5% | | Free cash flow (fiscal 2025) | $1.8B | | Dividend yield (trailing twelve months) | 0.00% | | Beta | 0.94 | | Cost of capital (WACC) | 7.45% | | Business classification | Profitable Growth (Moderate growth (~16% recent), High profitability (23% net margin), Moderately volatile earnings, High leverage (D/E 5.0x)) | ## On the stock lists | List | Place | Figure | Page | | --- | ---: | ---: | --- | | Near 52-week lows | #40 | +5.9% | https://sweetvaluelab.com/lists/near-52-week-lows | ## Dividends No dividend with an ex-date in the last twelve months. The last was $90.00, ex-date Sep 2, 2025. | Year of payments | Dividends per share | | --- | ---: | | To Dec 27, 2019 | $32.50 | | To Aug 18, 2022 | $18.50 | | To Nov 17, 2023 | $35.00 | | To Oct 4, 2024 | $75.00 | | To Sep 2, 2025 | $90.00 | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $1,484.37 | $685.23 | $3,495.02 | | DCF · Perpetuity growth · 10y | cross check | $1,708.26 | $842.96 | $3,990.00 | | DCF · EBITDA exit · 5y | cross check | $2,380.02 | $1,817.88 | $3,036.23 | | DCF · EBITDA exit · 10y | cross check | $2,551.00 | $1,815.70 | $3,511.94 | | P/E · peers | cross check | $1,573.61 | $1,500.66 | $1,796.69 | | P/E · own history | cross check | $1,949.44 | $1,612.82 | $2,163.08 | | PEG | sanity check | $786.39 | $786.39 | $786.39 | | EV/EBITDA · peers | cross check | $1,881.64 | $1,361.86 | $2,011.88 | | EV/Revenue · peers | cross check | $461.44 | $257.86 | $729.20 | | Earnings power value | cross check | $206.30 | $95.48 | $372.98 | | Dividend discount | cross check | $4,983.77 | $3,337.24 | $7,911.32 | ## Insider activity (SEC Form 4) Past 90 days: 0 open-market buys ($0) and 26 open-market sales ($5.7M); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Oct 15, 2026 | Reiss Joel | Co-Chief Operating Officer | Option/RSU exercise (10b5-1 plan) | 4,100 | $0 | | Oct 15, 2026 | Reiss Joel | Co-Chief Operating Officer | Open-market sell (10b5-1 plan) | 438 | $497,547.9 | | Oct 15, 2026 | Reiss Joel | Co-Chief Operating Officer | Open-market sell (10b5-1 plan) | 495 | $561,823.4 | | Oct 15, 2026 | Reiss Joel | Co-Chief Operating Officer | Open-market sell (10b5-1 plan) | 317 | $359,442.1 | | Oct 15, 2026 | Reiss Joel | Co-Chief Operating Officer | Open-market sell (10b5-1 plan) | 210 | $237,782.7 | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Sep 29, 2026 | 8-K | 1.01 Entry into a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1260221/000119312526406037/d317756d8k.htm | | Sep 28, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1260221/000126022126000064/tdg-20260928.htm | | Sep 21, 2026 | 8-K | 8.01 Other Events | https://www.sec.gov/Archives/edgar/data/1260221/000126022126000062/tdg-20260921.htm | | Sep 14, 2026 | 8-K | 7.01 Regulation FD Disclosure | https://www.sec.gov/Archives/edgar/data/1260221/000126022126000059/tdg-20260914.htm | | Sep 14, 2026 | 8-K | 7.01 Regulation FD Disclosure | https://www.sec.gov/Archives/edgar/data/1260221/000126022126000057/tdg-20260914.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | AltaRock | 2026-06-30 | 875,755 | $1.2B | | Vulcan Value | 2026-06-30 | 170,429 | $227.0M | | Triple Frond | 2026-06-30 | 106,544 | $141.9M | | Loeb | 2026-06-30 | 79,000 | $105.2M | 7 tracked managers in all. ## About 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… --- Source: https://sweetvaluelab.com/stocks/tdg (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.