The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,520 M
Debt : $25,110 M
EBITDA : $4,120 M
Net Debt (Debt - Cash): $22,590 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Aerospace & Defense
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 34.06
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $591 M
Average Revenue: $2,959 M
Free Cash Flow to Revenue : 20 %
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-09-30): $7,940 M
Revenue 4 Years Ago (2020-09-30): $5,103 M
Revenue Growth: 11%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-09-30): $58 M
Share Count 5 Years Ago (2020-09-30): $57 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $40.46
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 19%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $1,378
52-Week Low: $1,114
Threshold Price (15% Above 52-Week Low): $1,281
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $73,644 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Transdigm Group Incorporated (TDG) stock.
Twenty Years Avg PE 32, Fair Value PE 12, Industry Based PE is 18 and Growth based PE is 20. Based on these all values average assigned is 20.50.
Value-Trades has assined P/E value 20.50. Since current year earning per share is $40.46.
The fair value of Transdigm Group Incorporated (TDG) stock should be (20.50 x $40.46) = $829.43
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