TDG
TransDigm Group
$1,295.90
▼ 2.4%Updated Today 7:15 PM ET
▼ Down 6.1% over the last 12 months
Market Cap
$74.30B
P/E
35.72x
Forward P/E (est.)
32.7x
ROE
37.1%
Revenue Growth
13.3%
EPS Growth
9.2%
Profit Margin
21.9%
FCF Yield
2.1%
Debt / Equity
2.97x
ROIC
15.0%
Interest Coverage
—
Current Ratio
3.52x
Dividend Yield
—
Implied Growth (rev. DCF)
6.4%
Rating Score
54/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TDG's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TDG trades near $1,295.90, above its 50-day average ($1,217.49) and 200-day average ($1,282.60). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 58 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. TDG's is $38.41 (~3.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month TDG found buyers near $1,169.67 (support) and sellers near $1,331.33 (resistance); its 52-week range is $1,123.61–$1,623.83. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
TransDigm Group (TDG) is a large-cap company in the Aerospace & Defense industry, part of the Industrials sector of the S&P 500, with a market value around $74.30B.
In its latest reported year it generated about $8.83B in revenue and $2.07B in net profit.
Our model rates TDG Neutral (54/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
16.5%
Revenue moved from $4.80B in 2021 to $8.83B in 2025, a 16.5% compound annual growth rate. The most recent year grew a steady 13.3% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
60.1%
Operating Margin
47.2%
Net Margin
23.5%
ROE
37.1%
TransDigm Group keeps about 21.9% of each sales dollar as net profit, with a 60.1% gross margin and 47.2% operating margin. Return on equity is 37.1% and return on invested capital about 15.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$31.28B
Net Debt
$27.39B
Net Debt / EBITDA
6.58x
Debt / Equity
2.97x
Leverage: debt-to-equity is 3.0x, with a current ratio of 3.5x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $31.28B of total debt against $3.88B of cash.
Operating CF
$2.04B
Free Cash Flow
$1.82B
FCF Margin
20.6%
In the latest year TransDigm Group produced about $2.04B of operating cash flow and $1.82B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.1% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
35.72x
P/S
8.25x
P/B
6.11x
EV / EBITDA
22.1x
TDG trades at 35.7x trailing earnings (about 32.7x on estimated forward earnings), 8.2x sales, and 6.1x book value. Reverse-engineering today's price implies the market expects roughly 6.4% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How TDG stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (80 S&P 500 companies), TDG ranks #34 of 80 by our overall rating. It trades at a premium versus the sector on earnings (35.7x P/E vs. 30x median) with a higher return on equity (37.1% vs. 24.7%) and faster revenue growth (13.3% vs. 5.0%).
P/E vs sector
35.7x
median 30x
ROE vs sector
37.1%
median 24.7%
Growth vs sector
13.3%
median 5.0%
Sector rank
#34
of 80 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$1,471.91 – $2,408.57
vs. $1,295.90 today · expected CAGR 3% – 13%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $9.98B | $11.28B | $12.74B | $14.40B | $16.27B |
| Net income | $2.30B | $2.59B | $2.93B | $3.31B | $3.74B |
| EPS | $41.03 | $46.37 | $52.40 | $59.21 | $66.90 |
| Share price (low) | $902.75 | $1,020.10 | $1,152.72 | $1,302.57 | $1,471.91 |
| Share price (high) | $1,477.22 | $1,669.26 | $1,886.27 | $2,131.48 | $2,408.57 |
| CAGR (low–high) | -30% / 14% | -11% / 13% | -4% / 13% | 0% / 13% | 3% / 13% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for TDG:
- Revenue is growing 13.3% a year, a sign of real demand.
- High net margins (21.9%) point to pricing power or efficiency.
- Strong return on equity (37.1%) shows capital is put to work well.
The case against TDG:
- Elevated leverage (debt/equity 3.0x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 35.7x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 3.0x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: TransDigm Group is a large-cap industrials business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 35.7x earnings, which our model scores Neutral (54/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.