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TransDigm Group (0REK) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of TransDigm Group $1,220, price $1,095, upside +11.5%, quality 68 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Broad data
Sep 24, 2026
TransDigm Group
0REK · LSEUndervaluedQuality growthThe stock appears undervalued with acceptable quality.
✓Fair value $1,220 · Undervalued (+11.5%)
✓Quality 68/100
✓Healthy Growth (revenue 5y +11.6 %/yr)
✓Highly profitable · 21.9% net margin (TTM)
✓Negative equity (buybacks among others) · generates free cash flow
✓Wide moat 78/100
What runs behind every stock
26
valuation models
8 families, DCF to NCAV
37
quality factors
margins, balance sheet, cashflow, debt
6
AI factors
moat, what no ratio measures
2,000+
data points
verified, per stock, median
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $349.15 – $1,507 · fair‑value band $610.70 – $1,624 · the $1,095 price screens below the $1,220 fair value. Dashed = 300-day average. As of Sep 24, 2026.
Company profile
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally.
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TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The Power & Control segment offers 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, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, cargo loading and handling systems, delivery systems, and electronic components. Its Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, parachutes, specialized flight, wind tunnel and jet engine testing services and equipment, and testing and instrumentation solutions, as well as engineered audio, radio, and antenna systems. The Non-Aviation segment offers seat belts and safety restraints; mechanical/electromechanical actuators and controls; hydraulic/electromechanical actuators and fuel valves; refueling systems; and turbine controls. It serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots; airframe manufacturers, cabin system and subsystem suppliers, airlines, and third party maintenance suppliers; and off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers, as well as manufacturers of heavy equipment. The company was formerly known as TD Holding Corporation and changed its name to TransDigm Group Incorporated in 2006. The company was founded in 1993 and is headquartered in Cleveland, Ohio.
Stock analysis
TransDigm Group (0REK) currently trades at $1,095, while our model-based Fair Value estimate is $1,220, implying the stock looks roughly 10.3% undervalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of $2,761 per share, and 7 of the 22 models we run sit above the $1,095 price.
Bear case: the Growth DCF group reads lowest at $311.49, and 15 of the 22 models stay below the price. Evidence for this calculation is high.
Scenario range: $610.70 (bear) to $1,624 (bull), the price of $1,095 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
TransDigm Group reported revenue of $8.8B in FY2025 versus $4.8B in FY2021, a compound +16.5%/yr. Reported net income was $2.1B in FY2025, compounding +36.0%/yr from FY2021.
Key figures
Market cap $63.7B · P/E ratio 0.9 · P/S ratio 0.22 · EPS (TTM) $14.34 · Net margin 23.5% · Return on assets (EBIT) 13.7% · Operating margin 46.7% · Revenue (TTM) $9.5B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (low confidence).
What moves the price
The share trades about 25% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −24% fair-value upside, at 11%, 0REK screens cheaper than that median.
Fair Value models
Bear $610.70
Fair Value $1,220
Bull $1,624
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($14.34 per share) are deliberately not added.
Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.
Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF
$478.69
$1,162
$2,533
74
EPV
$308.15
$406.38
$491.14
74
Growth DCF
$459.66
$1,092
$2,167
73
All 23 models by family
DCF Models
FCF DCF
$478.69
$1,162
$2,533
74
Owner Earnings
$579.19
$1,406
$2,895
71
5Y Revenue Exit
$82.91
$310.04
$608.23
67
5Y EBITDA Exit
$474.62
$1,162
$2,057
71
5Y P/E Exit
$334.75
$857.72
$1,477
67
10Y Revenue Exit
$201.90
$471.40
$874.93
63
10Y EBITDA Exit
$468.99
$1,101
$2,124
64
10Y P/E Exit
$376.25
$876.07
$1,625
60
Earnings-Based
Graham-Dodd
$267.37
$1,476
$2,048
63
Lynch FV
$411.20
$587.42
$763.65
61
PEG = 1.0
$411.20
$587.42
$763.65
57
EPV
$308.15
$406.38
$491.14
74
Dividend Discount
Gordon GGM
$1,603
$3,195
$4,837
67
DDM Multi-Stage
$1,603
$2,761
$3,372
67
Multiples
P/E Multiple
$619.27
$825.69
$1,032
63
P/S Multiple
$251.13
$334.83
$418.54
58
EV/EBIT
$692.72
$1,028
$1,364
65
EV/EBITDA
$523.67
$802.91
$1,082
66
EV/Revenue
n/a
n/a
$77.74
50
Growth DCF
Growth DCF
$459.66
$1,092
$2,167
73
Rev-Margin DCF
$82.91
$311.49
$624.00
67
Economic Profit
ROIC Compounder
$375.51
$565.93
$787.97
71
Growth Earnings
Growth-Adj P/E
$596.34
$851.91
$1,107
67
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Set up alert →Quality Score breakdown
Overall quality
68/100
Of which business quality 62 · Market factors (momentum, volatility) 36
Profitability
55
Margins and returns on capital today
Quality Growth
76
Are margins and returns improving?
Cashflow
72
Earnings quality: real cash, not paper profit
Fin. Strength
31
Balance sheet, leverage, solvency risk
Investment
78
Disciplined investing over empire-building
Low Volatility
72
Calm price path (market factor)
Momentum
26
Price trend over the last 3–12 months (market factor)
52W Momentum
11
Distance to the 52-week high (market factor)
Net Issuance
78
Share count: buybacks or dilution?
Revenue & earnings trend
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.
90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+11.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.6%
Start year 2020 (pandemic). Over 10 years: +12.6% a year
Revenue growth 23 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.8%
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’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+35.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+35.1%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.27.9% vs 16.3%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.36% → 47%
2025 sits 62% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Start year 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+25.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+11.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +22.6% a year for the price and +9.0% for the forecasts.
Forecast 2026 (sales)+13.3%
Forecast 2027 (sales)+13.3%
Projected 2028 (sales)+11.9%
Projected 2029 (sales)+10.5%
Projected 2030 (sales)+9.1%
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Context: sector, industry, market
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: UK Stocks
- Valuation of the UK market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Weapons
Defense
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| Thales S.A HO | €222.70 | €170.99 | −23% |
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Frequently asked questions
Is TransDigm Group (0REK) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $1,220 versus a price of $1,095, about +11% upside (undervalued).
What is the fair value of 0REK?
Our model-based fair value for TransDigm Group is $1,220 (as of Sep 24, 2026), built from audited fundamentals. The current price: $1,095.
What is the quality score of 0REK?
TransDigm Group has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for TransDigm Group (0REK)?
Our model-based price target is the fair value of $1,220 (as of Sep 24, 2026) from 23 valuation models. Cautious scenario $610.70, optimistic scenario $1,624. It is a calculation from audited fundamentals, not an analyst target.
What is the TransDigm Group stock forecast for 2026?
Our models put fair value at $1,220, about +11% upside versus a price of $1,095 (undervalued). Cautious scenario $610.70, optimistic scenario $1,624. The calculation is refreshed regularly with new filings.
What is the revenue of TransDigm Group (0REK)?
TransDigm Group reported trailing-twelve-month revenue of about $9.5B (latest available figure, as of Sep 24, 2026).
What growth is priced into TransDigm Group (0REK)?
For today's price to be fair in a discounted-cash-flow model, TransDigm Group would have to grow free cash flow by +25.5 % per year for five years (discount rate 10.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.6 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 0REK use?
Our models discount TransDigm Group at 10.0 %: a base by market capitalisation (unknown), damped by beta 0.91, country premium for United Kingdom. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For TransDigm Group that is +25.5 % per year a year over ten years, using the same discount rate (10.0 %) and the same formula as our fair value.
How much growth has TransDigm Group (0REK) delivered so far?
Over the past 5 years revenue at TransDigm Group grew +11.6 % a year. The price currently implies +25.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of TransDigm Group (0REK) growing?
The median revenue growth in the sector is +7.0 % a year. That is the yardstick for the growth priced into TransDigm Group (+25.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of TransDigm Group (0REK)?
The free-cash-flow yield on the price is 2.85 %: that much free cash flow TransDigm Group produces per unit of market value. When it exceeds the discount rate of our models (10.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of TransDigm Group (0REK)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For TransDigm Group it is $1,220 per share (as of Sep 24, 2026), against a price of $1,095. It is the blended result of 23 valuation models (cash flow, earnings, asset, dividend).
Is TransDigm Group stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 0REK trades below its calculated fair value: price $1,095, fair value $1,220, a gap of about +11% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0REK?
No. The price is what the market pays today ($1,095); the fair value is what the company's own numbers justify ($1,220). For TransDigm Group the two are $125.42 per share apart. That gap is exactly why we show both numbers side by side.
How much is TransDigm Group worth?
The market values TransDigm Group at about $63.7B (market capitalisation, as of Sep 24, 2026). Per share that is $1,095; our models calculate a fair value of $1,220 per share.
What do the bullish and bearish scenarios say about 0REK?
Our models span a range for TransDigm Group: cautious scenario $610.70, base $1,220, optimistic $1,624 per share (as of Sep 24, 2026, price $1,095). The range comes from different growth and margin assumptions, not from analyst opinions.
How far is 0REK from its 52-week high?
TransDigm Group trades at $1,095, about 25% below its 52-week high of $1,457 and 2% above the low of $1,078 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $1,220 is for.
Which stocks are comparable to TransDigm Group?
From the same area (Industrials) we also value General Electric Company, RTX Corporation, Airbus SE, Lockheed Martin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is TransDigm Group stock attractive at the current price?
The data as of Sep 24, 2026: price $1,095, calculated fair value $1,220 (+11%), Quality Score 68/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0REK calculated?
We run TransDigm Group through 23 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $1,220, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. TransDigm Group currently trades 10 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of TransDigm Group (0REK)?
The closing price on Oct 2, 2026 was $1,095. Our model-based fair value is $1,220, about +11% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with TransDigm Group right now?
The model range is unusually wide ($610.70 to $1,624). The outcome hinges heavily on assumptions, so read the point estimate with caution. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of TransDigm Group (0REK) come from?
Earnings per share at TransDigm Group grew +16.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +12.0 %, EBIT margin +1.3 %, tax rate +1.0 %, residual (interest, one-offs) +1.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of TransDigm Group
How large is the market capitalisation of TransDigm Group (0REK)?
The market capitalisation of TransDigm Group is $63.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/E ratio of TransDigm Group (0REK)?
The price-to-earnings ratio of TransDigm Group is 0.9 (as of Aug 5, 2026). Price to earnings: how many years of current profit you pay for the stock. A P/E of 10 means ten years of profit.
What is the P/S ratio of TransDigm Group (0REK)?
The price-to-sales ratio of TransDigm Group is 0.22 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of TransDigm Group (0REK)?
Earnings per share at TransDigm Group are $14.34 (price ÷ EPS = P/E 0.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of TransDigm Group (0REK)?
The net margin of TransDigm Group is 23.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the EBIT return on assets of TransDigm Group (0REK)?
On an EBIT basis the return on assets of TransDigm Group is 13.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of TransDigm Group (0REK)?
The operating margin of TransDigm Group is 46.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at TransDigm Group (0REK)?
Revenue at TransDigm Group is growing +18.3% versus a year earlier (3y avg +17.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at TransDigm Group (0REK)?
Earnings per share at TransDigm Group are growing +11.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does TransDigm Group (0REK) carry?
The net debt of TransDigm Group is $27.2B (fiscal year 2025, ≈ 15.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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