Transdigm Group Incorporated (TDG) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Transdigm Group Incorporated stock (TDG) is currently trading at $1156.49. Transdigm Group Incorporated PE ratio is 37.45. Transdigm Group Incorporated PS ratio (Price-to-Sales) is 7.21. Analyst consensus price target for TDG is $1594.00. WallStSmart rates TDG as Underperform.
- TDG PE ratio analysis and historical PE chart
- TDG PS ratio (Price-to-Sales) history and trend
- TDG intrinsic value — DCF, Graham Number, EPV models
- TDG stock price prediction 2025 2026 2027 2028 2029 2030
- TDG fair value vs current price
- TDG insider transactions and insider buying
- Is TDG undervalued or overvalued?
- Transdigm Group Incorporated financial analysis — revenue, earnings, cash flow
- TDG Piotroski F-Score and Altman Z-Score
- TDG analyst price target and Smart Rating
Transdigm Group Incorporated
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TDG Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Transdigm Group Incorporated (TDG)
TDG trades 528% above its Graham fair value of $211.14, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Transdigm Group Incorporated (TDG) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, operating margin, profit margin. Concerns around price/book and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Transdigm Group Incorporated (TDG) Key Strengths (4)
Keeps $46 of every $100 in revenue after operating costs
Keeps $22 of every $100 in revenue as net profit
97.28% of shares held by major funds and institutions
Large-cap company with substantial market presence
Supporting Valuation Data
Transdigm Group Incorporated (TDG) Areas to Watch (5)
Earnings declining -12.90%, profits shrinking
Very expensive at 9.6x book value
Paying a premium for growth, expensive relative to earnings expansion
Premium valuation at 7.2x annual revenue
Solid revenue growth at 13.90% per year
Supporting Valuation Data
Transdigm Group Incorporated (TDG) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 9 metrics analyzed, 4 register as strengths (avg 9.8/10) while 5 fall into concern territory (avg 3.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Profit Margin, Institutional Own.. Profitability is solid with Operating Margin at 45.60%, Profit Margin at 22.20%.
The Bear Case
The primary concerns are EPS Growth, Price/Book, PEG Ratio. Some valuation metrics including PEG Ratio (2.91), Price/Sales (7.21), Price/Book (9.55) suggest expensive pricing. Growth concerns include Revenue Growth at 13.90%, EPS Growth at -12.90%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Operating Margin at 45.60% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 13.90% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Profit Margin) and negatives (EPS Growth, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
TDG Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
TDG's Price-to-Sales ratio of 7.21x trades at a 35% premium to its historical average of 5.34x (82th percentile). The current valuation is 32% below its historical high of 10.68x set in Sep 2024, and 238% above its historical low of 2.13x in Oct 2008. Over the past 12 months, the PS ratio has compressed from ~9.8x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Transdigm Group Incorporated (TDG) · INDUSTRIALS › AEROSPACE & DEFENSE
The Big Picture
Transdigm Group Incorporated is a mature, profitable business with steady cash generation. Revenue reached 9.1B with 14% growth year-over-year. Profit margins are strong at 22.2%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 22.2% and operating margin of 45.6% demonstrate strong pricing power and operational efficiency.
Generating 772M in free cash flow and 832M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Debt management: total debt of 29.9B is significantly higher than cash (2.5B). Monitor refinancing risk.
Sector dynamics: monitor AEROSPACE & DEFENSE industry trends, competitive moves, and regulatory changes that could impact Transdigm Group Incorporated.
Bottom Line
Transdigm Group Incorporated is a well-established business delivering consistent profitability with 22.2% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(203 last 3 months)
| Insider | Type | Shares |
|---|---|---|
SMALL, ROBERT J Director | Buy | +1 |
| Insider | Type | Shares |
|---|---|---|
LISMAN, MICHAEL Director, President & CEO | Buy | +950 |
Data sourced from SEC Form 4 filings
Last updated: 11:50:08 AM
About Transdigm Group Incorporated(TDG)
NYSE
INDUSTRIALS
AEROSPACE & DEFENSE
USA
TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.