TDG

Transdigm Group IncorporatedIndustrials / Aerospace & DefenseINTACT

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.

Share Price
$1140.32
52W: $1119.62 - $1463.03
DCF Fair Value
$282.96
-303% Premium
P/E (TTM)
34.5x
ROIC
34.5%
Operating Margin
46%
FCF Yield
2.3%
Debt / Equity
0.65x
Piotroski Score
8/9
Altman Z-Score
2.28
Market Cap
$63.8B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($282.96)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$282.96
MOS Buy Target (-25%)
$212.22
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$1140.32
DCF Fair Value
$282.72
-303.3% Premium
$1,457M
$100M$1,457M (Reported)$50,000M
18.0%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$30,700M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$18.9B
PV of Terminal Value
$27.7B
Implied Enterprise Value
$46.5B
Implied Equity Value
$15.8B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$1,719$2,029$2,394$2,825$3,333$3,483$3,640$3,804$3,975$4,154
Present Value (PV)$1,577$1,708$1,849$2,001$2,166$2,077$1,991$1,909$1,830$1,755

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number
N/A

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

Not calculable here: the formula takes a square root of EPS × book value, so it breaks down when trailing earnings (or book value) are negative. A company losing money has no defensive-investor price under Graham's classic test — lean on the DCF and solvency scores instead.

EPS: $33.02BVPS: $-167.97
Revised Graham Formula+2.1%
$1165.33

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings2.2% Yield
$24.72 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.4BYield: 2.2%

Reverse DCF: Market Growth Expectation

HIGH BARRIER
16.0% CAGR (Next 10 Yrs)

At the current price of $1140.32, the market is assuming the business will compound Free Cash Flow at 16.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil TDG with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Transdigm Group Incorporated. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 46% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Transdigm Group Incorporated (TDG) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Transdigm Group Incorporated.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Transdigm Group Incorporated has an estimated DCF intrinsic fair value of $282.96 per share compared to its current market price of $1140.32. This represents an estimated 303.0% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $N/A.

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