TransDigm Group INC
$1,217.28
+14.28 (+1.19%) · delayed · Nov 13, 2026
Five-year price
52w $1,071.25 to $1,463.03
- Market cap
- $66.5B
- Enterprise value
- $98.2B
- P/E
- 34.3×
- 39.2× on 3y avg EPS
- EV / EBIT
- 20.4×
- FCF yield
- 2.9%
- ROIC
- 16.9%
- Debt / equity
- —
- Piotroski F
- 5/9
Value scorecard · FY2026
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 17.7%
- –ROE > 15% (5y avg)5y avg ROE n/a
- ●Stable operating marginsMargin volatility 2.1% (σ, 5y)
- ●Earnings convert to cashFCF / net income 96% (5y avg)
- ●Growing revenueRevenue CAGR 5y 17.1%
- ●Shrinking share countDiluted shares -1.4% over 5y
Value
0
- ○P/E below 15P/E 34.3
- ○EV/EBIT below 12EV/EBIT 20.4
- ○FCF yield above 6%FCF yield 2.9%
- –Price below Graham NumberGraham Number n/a
- –P/B below 3P/B n/a
Safety
25
- –Debt / equity below 0.5D/E n/a
- ○Debt payable in < 4 yrs of earningsNet debt $31.8B
- ○Interest coverage > 8xCoverage 2.5x
- ●Current ratio > 1.5Current ratio 2.90
- ○Piotroski F-score ≥ 6F-score 5/9
Graham Defensive
83
- ●Adequate size (revenue > $2B)Revenue $10.6B
- ●Strong condition (current ratio ≥ 2)Current ratio 2.90
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 146%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 39.2
- –P/E × P/B ≤ 22.5Product n/a
Valuation lab
What do you have to believe?
At $1,217.28, the market is pricing in about 18.2% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $31.8B · 55M shares · 5y revenue CAGR 17.1%
Intrinsic value
$1,068.40
Price
$1,217.28
Premium paid
14%
What the price implies
The market is paying for 18.2% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
68% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,504 | 3,811 | 5,223 | 5,103 | 4,798 | 5,429 | 6,585 | 7,940 | 8,831 | 10,557 |
| Gross profit | 1,985 | 2,177 | 2,809 | 2,647 | 2,513 | 3,099 | 3,842 | 4,672 | 5,311 | 6,254 |
| Operating income | 1,483 | 1,655 | 1,926 | 1,751 | 1,691 | 2,215 | 2,923 | 3,531 | 4,165 | 4,811 |
| Operating margin | 42.3% | 43.4% | 36.9% | 34.3% | 35.2% | 40.8% | 44.4% | 44.5% | 47.2% | 45.6% |
| Pre-tax income | 837 | 986 | 1,063 | 740 | 715 | 1,127 | 1,716 | 2,215 | 2,629 | 2,764 |
| Income tax | 209 | 24 | 222 | 87 | 34 | 261 | 417 | 500 | 555 | 656 |
| Net income | 597 | 957 | 890 | 699 | 680 | 866 | 1,298 | 1,714 | 2,074 | 2,107 |
| EPS (diluted) | 7.88 | 16.20 | 13.84 | 8.96 | 10.41 | 13.40 | 22.03 | 25.62 | 32.08 | 35.51 |
| Diluted shares | 53 | 52 | 53 | 57 | 58 | 58 | 57 | 58 | 58 | 58 |
Who owns it