Skip to main content
TDG logo

Transdigm Group Incorporated

Exchange: NYSESector: IndustrialsIndustry: Aerospace & Defense

TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.

Did you know?

Profit margin of 22.2% — that's well above average.

Current Price

$1158.36

+0.89%

GoodMoat Value

$795.57

31.3% overvalued
Profile
Valuation (TTM)
Market Cap$65.24B
P/E36.08
EV$92.45B
P/B
Shares Out56.32M
P/Sales7.16
Revenue$9.11B
EV/EBITDA20.04

Transdigm Group Incorporated (TDG) Valuation

GoodMoat Analysis

Based on data as of March 26, 2026

Transdigm appears unfavourable from a value investing perspective, trading at a significant premium to its estimated fair value with a minimal margin of safety. Its P/E multiple is elevated relative to both its sector and its own growth rate, suggesting the market is pricing in near-perfect execution.

Read full analysis
Based on the GoodMoat Investment Framework, Transdigm's valuation assessment is unfavourable. The current price of $1,156.49 is 45% above the GoodMoat Target of $795.57, implying a negative margin of safety. According to the framework's DCF bands, a margin of safety below 10% is considered unfavourable, and a negative value fails to provide any cushion for the investor. The stock's forward P/E of 36x is high, especially when contextualized against its 13.9% revenue growth. While the company exhibits strong operational metrics like a 47.2% operating margin, a P/E this high for a mid-teens grower is demanding and leaves little room for error. The 2.8% free cash flow yield, derived from the provided data, is low, indicating the price is high relative to the cash the business generates. When integrating this valuation with the framework's decision logic—where a stock must first pass a 'Moat & Quality Gate' before being assessed on price—the severe overvaluation relative to the target price is a critical hurdle. For a value investor seeking a margin of safety, the current price does not appear attractive.

TDG Fair Value Estimate

$795.5731.3% overvalued

Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

TDG Valuation Metrics

FCF$1.82B
FCF Growth Rate12.14%
EPS Growth (CAGR)15.14%
WACC10.00%

TDG Valuation & Fair Value Analysis

Transdigm Group Incorporated (TDG) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The GoodMoat Fair Value target for Transdigm Group Incorporated is $795.57. The current stock price is $1158.36, suggesting the stock is 45.6% overvalued.

The price-to-earnings (P/E) ratio is 36.08. Price-to-sales ratio is 7.16. Enterprise value to EBITDA is 20.04. PEG ratio is -2.75.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Transdigm Group Incorporated's intrinsic value.