Industrials · Aerospace & Defense · US stock · price as of 22 Oct 2026
Key indicators
Price
$1,141.74
52-week range
$1,071.25 – $1,463.03
Market cap
$65.5B
P/E (trailing)
31.1×
EV / EBITDA
19.0×
Free-cash-flow yield
2.9%
Dividend yield
8.1%
Revenue (last 12 months)
$10.0B
Revenue growth (3y a year)
17.6%
Operating margin
46.0%
Return on invested capital
17.8%
Net debt / EBITDA
6.0×
Fair value
Fair value (average of valid models)$1,311.07 middle half of models $1,066 – $1,670
Versus priceFair+15% to fair value
P/E multiple
$1,196.49
P/S multiple
$1,082.35
EV/EBITDA multiple
$1,186.19
EV/EBIT multiple
$1,287.13
EV/revenue multiple
$1,016.24
10-year DCF, EBITDA exit
$1,805.71
5-year DCF, EBITDA exit
$1,728.13
10-year DCF, revenue exit
$1,744.72
5-year DCF, revenue exit
$1,651.26
10-year DCF, growth exit
$1,140.39
5-year DCF, growth exit
$980.11
Earnings power value
$914.15
Model uncertainty
Medium
X-Ray Score
57/ 100 · High confidence · ahead of 73% of sector peers
Valuation61
Growth85
Profitability45
Financial health39
Dividends54
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
TransDigm designs and makes specialised components for commercial and military aircraft, including actuators, sensors, ignition systems and cockpit parts. Many of its products are proprietary and sole-source, and they are sold to aircraft manufacturers and to airlines and operators needing replacement parts. A large share of revenue comes from the aftermarket. The company also grows by acquiring smaller aerospace businesses and funds many of those deals with borrowed money.
The company reported trailing revenue of $10.0 billion and three-year growth of 17.6% a year. Profitability figures show an operating margin of 46.0% and a return on invested capital of 18%. Its net debt to EBITDA ratio stands at 6.0 times. The dividend yield is 8.1%. The figures are a snapshot of reported results rather than a forecast.
StocksXray gives TransDigm Group INC an X-Ray Score of 57 out of 100 (high confidence), ahead of 73% of the S&P 500 stocks in its sector. Its strongest lens is growth (85) and its weakest is financial health (39).
Our fair value (the average of the valid models) is $1,311.07 (range $1,065.82 to $1,670.48). At $1,141.74 the stock trades 13% below that value, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
TransDigm Group INC (TDG)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$516.53
$446.39
$717.12
$1,258.48
$1,318.02
$1,141.74
Market cap
$30.2B
$26.0B
$41.0B
$72.7B
$76.7B
$65.5B
P/E
49.6×
33.3×
32.6×
49.1×
41.1×
31.1×
EV / revenue
9.4×
7.8×
8.6×
11.4×
11.7×
9.5×
EV / EBITDA
23.2×
17.2×
17.8×
23.6×
22.8×
19.0×
Price / free cash flow
37.3×
31.3×
33.2×
38.7×
42.2×
34.0×
Free-cash-flow yield
2.7%
3.2%
3.0%
2.6%
2.4%
2.9%
Price / book
–
–
–
–
–
–
Dividend yield
–
4.14%
–
–
–
8.08%
Fundamentals checklist ● 8 Good · ● 4 Average · ● 4 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−0.3%Bad
Free-cash-flow yield2.9%Bad
Risk models
Altman Z score1.0×Bad
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)33.8%Good
Free-cash-flow growth (3y)29.9%Good
Revenue growth (3y)17.6%Good
Growth consistency100%Good
Balance sheet
Current ratio3.0×Good
Net debt / EBITDA6.0×Bad
Interest coverno interest costGood
Valuation
Fair value vs price1.1×Good
EBIT / EV yield4.8%Average
Profitability
Return on invested capital17.8%Average
Operating margin46.0%Good
Gross profitability22.3%Average
Red flags
Negative equity — Book equity is negative
Dividend may be at risk — Dividends exceed free cash flow
Negative equity — Book equity is negative
Dividend may be at risk — Dividends exceed free cash flow
Negative equity — Book equity is negative
Dividend may be at risk — Dividends exceed free cash flow
Negative equity — Book equity is negative
Dividend may be at risk — Dividends exceed free cash flow
Negative equity — Book equity is negative
Dividend may be at risk — Dividends exceed free cash flow
XStocksXray
TransDigm Group INC (TDG)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
4,798
5,429
6,585
7,940
8,831
10,007
Gross profit
2,513
3,099
3,842
4,672
5,311
5,961
Operating income
1,691
2,215
2,923
3,531
4,165
4,608
Net income
680
866
1,298
1,714
2,074
2,129
Diluted EPS ($)
10.41
13.40
22.03
25.62
32.08
36.71
Free cash flow
808
829
1,236
1,880
1,816
1,927
Gross margin
52.4%
57.1%
58.3%
58.8%
60.1%
59.6%
Operating margin
35.2%
40.8%
44.4%
44.5%
47.2%
46.0%
Net margin
14.2%
16.0%
19.7%
21.6%
23.5%
21.3%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
19,315
18,107
19,970
25,586
22,909
26,754
Cash
4,787
3,001
3,472
6,261
2,808
2,773
Total debt
19,649
19,445
19,401
24,394
29,291
32,760
Equity
-2,916
-3,773
-1,984
-6,290
-9,686
-9,809
Dividend per share ($)
0.00
18.50
0.00
–
–
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
