Allison Transmission Holdings Inc (ALSN) fair value: what the stock is really worth
We calculate from audited financials what Allison Transmission Holdings Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 19, 2026.
How to read this chart
60‑month range $30.30 – $135.66 · fair‑value band $71.46 – $165.91 · the $117.10 price screens above the $115.47 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 19, 2026.
Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide.
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Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction of off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company also provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. In addition, it sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its solutions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.
Stock analysis
Allison Transmission Holdings Inc (ALSN) currently trades at $117.10, while our model-based Fair Value estimate is $115.47, implying the stock looks roughly 1.4% fairly valued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $130.82 per share, and 8 of the 25 models we run sit above the $117.10 price.
Bear case: the Dividend Discount group reads lowest at $14.42, and 17 of the 25 models stay below the price. Evidence for this calculation is high.
Scenario range: $71.46 (bear) to $165.91 (bull), the price of $117.10 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 63/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Allison Transmission Holdings Inc reported revenue of $3.0B in FY2025 versus $2.4B in FY2021, a compound +5.8%/yr. Reported net income was $623M in FY2025, compounding +9.0%/yr from FY2021.
Key figures
Market cap $10.0B · P/E ratio 18.2 · P/S ratio 3.77 · EPS (TTM) $6.43 · Dividend yield 0.9% · Net margin 20.7% · Return on equity 30.4% · Return on assets (EBIT) 16.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The share trades about 15% below its 52-week high and 55% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −20% fair-value upside, at −1%, ALSN screens cheaper than that median.
Fair Value models
Bear $71.46Fair Value $115.47Bull $165.91
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 9 months old). Earnings retained since then ($3.87 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.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.
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.79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−6.7%
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.
+2.8%
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.
+7.7%
Revenue growth 15 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.
+3.0%
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What shareholders gained per year (last 5 years) ⓘ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. Basis: adjusted.
+13.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+12.7%
Dividend (yield on the price)0.9%
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.12% vs 19%, slowing
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.26% → 32%
Growth Forecast
Little optimism in the price
The price assumes about as much growth as the company has delivered so far and less 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).
+7.2%
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.
+17.7%
Yearly sales growth analysts expect, extended to five years.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Compare Allison Transmission Holdings Inc with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Auto Parts · 654 stocks
Beats the industry median on 8/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score64 · Top 25%
Fair Value upside−12% · Below median
Profitability
Return on equity (TTM)30% · Top 25%
Return on assets8% · Top 25%
Net margin (TTM)15% · Top 25%
Operating margin (TTM)19% · Top 25%
Growth and dividend
Revenue growth84% · Top 25%
Dividend yield (TTM)0.9% · Below median
Balance sheet
Debt / equity1.55× · Highest 25%
Valuation Multiplesvs Auto Parts median · lower = cheaper
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Is Allison Transmission Holdings Inc (ALSN) overvalued or undervalued?
As of Sep 19, 2026, our model estimates a fair value of $115.47 versus a price of $117.10, about −1% upside (fairly valued).
What is the fair value of ALSN?
Our model-based fair value for Allison Transmission Holdings Inc is $115.47 (as of Sep 19, 2026), built from audited fundamentals. The current price: $117.10.
What is the quality score of ALSN?
Allison Transmission Holdings Inc has a Quality Score of 63/100. 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 Allison Transmission Holdings Inc (ALSN)?
Our model-based price target is the fair value of $115.47 (as of Sep 19, 2026) from 25 valuation models. Cautious scenario $71.46, optimistic scenario $165.91. It is a calculation from audited fundamentals, not an analyst target.
What is the Allison Transmission Holdings Inc stock forecast for 2026?
Our models put fair value at $115.47, about −1% upside versus a price of $117.10 (fairly valued). Cautious scenario $71.46, optimistic scenario $165.91. The calculation is refreshed regularly with new filings.
What is the revenue of Allison Transmission Holdings Inc (ALSN)?
Allison Transmission Holdings Inc reported trailing-twelve-month revenue of about $3.6B (latest available figure, as of Sep 19, 2026).
Does Allison Transmission Holdings Inc pay a dividend?
Allison Transmission Holdings Inc currently shows a dividend yield of about 0.94% relative to its recent price (as of Sep 19, 2026).
What growth is priced into Allison Transmission Holdings Inc (ALSN)?
For today's price to be fair in a discounted-cash-flow model, Allison Transmission Holdings Inc would have to grow free cash flow by +7.2 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.7 % per year. As of Sep 19, 2026.
What discount rate (WACC) does the fair value of ALSN use?
Our models discount Allison Transmission Holdings Inc at 9.8 %: a base by market capitalisation (mid), damped by beta 1.01, country premium for USA. 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 Allison Transmission Holdings Inc that is +7.2 % per year a year over ten years, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Allison Transmission Holdings Inc (ALSN) delivered so far?
Over the past 5 years revenue at Allison Transmission Holdings Inc grew +7.7 % a year. The price currently implies +7.2 % 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 Allison Transmission Holdings Inc (ALSN) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into Allison Transmission Holdings Inc (+7.2 % 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 Allison Transmission Holdings Inc (ALSN)?
The free-cash-flow yield on the price is 6.52 %: that much free cash flow Allison Transmission Holdings Inc produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Allison Transmission Holdings Inc (ALSN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Allison Transmission Holdings Inc it is $115.47 per share (as of Sep 19, 2026), against a price of $117.10. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Allison Transmission Holdings Inc stock overvalued or undervalued in 2026?
As of Sep 19, 2026, ALSN trades above its calculated fair value: price $117.10, fair value $115.47, a gap of about −1% (fairly valued). 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 ALSN?
No. The price is what the market pays today ($117.10); the fair value is what the company's own numbers justify ($115.47). For Allison Transmission Holdings Inc the two are $1.63 per share apart. That gap is exactly why we show both numbers side by side.
How much is Allison Transmission Holdings Inc worth?
The market values Allison Transmission Holdings Inc at about $10.0B (market capitalisation, as of Sep 19, 2026). Per share that is $117.10; our models calculate a fair value of $115.47 per share.
What do the bullish and bearish scenarios say about ALSN?
Our models span a range for Allison Transmission Holdings Inc: cautious scenario $71.46, base $115.47, optimistic $165.91 per share (as of Sep 19, 2026, price $117.10). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ALSN?
Allison Transmission Holdings Inc trades at a price-to-earnings ratio of 18.2 (as of Sep 19, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $115.47 is built from several models across several years. Other multiples: PEG 0.7, P/B 5.1, P/S 2.6, EV/EBITDA 9.8.
What is the PEG ratio of ALSN?
The PEG ratio of Allison Transmission Holdings Inc is 0.67 (P/E divided by earnings growth, as of Sep 19, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Allison Transmission Holdings Inc (ALSN)?
Balance-sheet figures for Allison Transmission Holdings Inc (as of Sep 19, 2026): return on equity 30.4%, debt of 1.55 per unit of equity. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is ALSN from its 52-week high?
Allison Transmission Holdings Inc trades at $117.10, about 15% below its 52-week high of $137.28 and 55% above the low of $75.38 (as of Sep 19, 2026). Distance from the high says nothing about value: that is what the fair value of $115.47 is for.
Which stocks are comparable to Allison Transmission Holdings Inc?
From the same area (Consumer Cyclical) we also value O'Reilly Automotive, Inc, AutoZone, Inc, Hyundai Mobis Co, Fuyao Glass Industry Group, 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 Allison Transmission Holdings Inc stock attractive at the current price?
The data as of Sep 19, 2026: price $117.10, calculated fair value $115.47 (−1%), Quality Score 63/100, from 25 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 ALSN calculated?
We run Allison Transmission Holdings Inc through 25 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 $115.47, 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 16.1 % above its aggregate fair value. Allison Transmission Holdings Inc itself currently trades above fair value. 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 Allison Transmission Holdings Inc (ALSN)?
The closing price on Sep 18, 2026 was $117.10. Our model-based fair value is $115.47, about −1% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Allison Transmission Holdings Inc right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($71.46 to $165.91) leaves room in how you read the outcome.
Where does the earnings growth of Allison Transmission Holdings Inc (ALSN) come from?
Earnings per share at Allison Transmission Holdings Inc grew +23.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +13.5 %, EBIT margin +3.2 %, tax rate +2.8 %, residual (interest, one-offs) +2.3 %. 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 Allison Transmission Holdings Inc
How large is the market capitalisation of Allison Transmission Holdings Inc (ALSN)?
The market capitalisation of Allison Transmission Holdings Inc is $10.0B. 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/S ratio of Allison Transmission Holdings Inc (ALSN)?
The price-to-sales ratio of Allison Transmission Holdings Inc is 3.77 (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 Allison Transmission Holdings Inc (ALSN)?
Earnings per share at Allison Transmission Holdings Inc are $6.43 (price ÷ EPS = P/E 18.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Allison Transmission Holdings Inc (ALSN)?
The dividend yield of Allison Transmission Holdings Inc is 0.9% (payout 17.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Allison Transmission Holdings Inc (ALSN)?
The net margin of Allison Transmission Holdings Inc is 20.7% (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 return on equity of Allison Transmission Holdings Inc (ALSN)?
The return on equity (ROE) of Allison Transmission Holdings Inc is 30.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Allison Transmission Holdings Inc (ALSN)?
On an EBIT basis the return on assets of Allison Transmission Holdings Inc is 16.9% (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 Allison Transmission Holdings Inc (ALSN)?
The operating margin of Allison Transmission Holdings Inc is 19.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Allison Transmission Holdings Inc (ALSN)?
Revenue at Allison Transmission Holdings Inc is growing +83.6% versus a year earlier (3y avg +2.8%). 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 Allison Transmission Holdings Inc (ALSN)?
Earnings per share at Allison Transmission Holdings Inc are growing −40.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Allison Transmission Holdings Inc (ALSN) carry?
The net debt of Allison Transmission Holdings Inc is $1.4B (fiscal year 2025, ≈ 2.2 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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Broad data
Sep 19, 2026