TransDigm Group Incorporated

DB:T7D Stock Report

Market Cap: €67.1b

TransDigm Group Valuation

Is T7D undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of T7D when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: T7D (€1202.5) is trading below our estimate of fair value (€1894.33)

Significantly Below Fair Value: T7D is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for T7D?

Key metric: As T7D is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for T7D. This is calculated by dividing T7D's market cap by their current earnings.
What is T7D's PE Ratio?
PE Ratio47.9x
EarningsUS$1.48b
Market CapUS$71.00b

Price to Earnings Ratio vs Peers

How does T7D's PE Ratio compare to its peers?

The above table shows the PE ratio for T7D vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.9x
RHM Rheinmetall
39x29.0%€26.7b
MTX MTU Aero Engines
23.7x11.2%€16.8b
OHB OHB
12.8x11.0%€888.7m
ENR Siemens Energy
32.1x23.4%€38.0b
T7D TransDigm Group
47.9x17.3%€71.0b

Price-To-Earnings vs Peers: T7D is expensive based on its Price-To-Earnings Ratio (47.9x) compared to the peer average (26.9x).


Price to Earnings Ratio vs Industry

How does T7D's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
T7D 47.9xIndustry Avg. 24.6xNo. of Companies8PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: T7D is expensive based on its Price-To-Earnings Ratio (47.9x) compared to the European Aerospace & Defense industry average (24.6x).


Price to Earnings Ratio vs Fair Ratio

What is T7D's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

T7D PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio47.9x
Fair PE Ratio26.6x

Price-To-Earnings vs Fair Ratio: T7D is expensive based on its Price-To-Earnings Ratio (47.9x) compared to the estimated Fair Price-To-Earnings Ratio (26.6x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst T7D forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1,202.50
€1,440.61
+19.8%
7.2%€1,594.10€1,164.43n/a21
Nov ’25€1,189.50
€1,376.42
+15.7%
9.4%€1,538.99€1,019.81n/a21
Oct ’25€1,273.50
€1,307.16
+2.6%
8.9%€1,488.80€993.74n/a21
Sep ’25€1,224.50
€1,322.75
+8.0%
8.4%€1,501.66€1,002.32n/a21
Aug ’25€1,188.50
€1,344.98
+13.2%
7.0%€1,505.89€1,112.04n/a16
Jul ’25€1,179.00
€1,338.49
+13.5%
9.1%€1,534.78€968.55n/a22
Jun ’25€1,226.50
€1,306.74
+6.5%
8.6%€1,525.88€962.94n/a22
May ’25€1,171.00
€1,195.16
+2.1%
8.3%€1,418.12€934.20n/a23
Apr ’25€1,136.00
€1,152.60
+1.5%
7.4%€1,325.18€926.70n/a22
Mar ’25€1,086.00
€1,133.41
+4.4%
7.3%€1,276.50€925.00n/a21
Feb ’25€1,019.00
€1,014.30
-0.5%
11.0%€1,174.53€649.81n/a22
Jan ’25€911.80
€955.99
+4.8%
10.3%€1,086.72€638.81n/a21
Dec ’24€889.20
€962.88
+8.3%
10.5%€1,102.56€648.12n/a21
Nov ’24€779.00
€912.29
+17.1%
9.8%€1,049.61€664.63€1,189.5021
Oct ’24€799.20
€922.55
+15.4%
10.0%€1,060.42€671.47€1,273.5020
Sep ’24€830.80
€895.72
+7.8%
8.3%€1,021.65€697.00€1,224.5019
Aug ’24€815.00
€837.44
+2.8%
8.4%€938.45€656.20€1,188.5019
Jul ’24€811.40
€814.70
+0.4%
8.1%€912.20€665.91€1,179.0018
Jun ’24€720.60
€827.37
+14.8%
8.2%€935.70€683.06€1,226.5018
May ’24€686.00
€724.45
+5.6%
6.8%€805.90€633.85€1,171.0018
Apr ’24€671.40
€734.50
+9.4%
6.5%€820.49€645.33€1,136.0018
Mar ’24€699.40
€756.27
+8.1%
6.5%€841.23€626.67€1,086.0017
Feb ’24€655.80
€655.58
-0.03%
5.9%€740.98€591.70€1,019.0017
Jan ’24€585.60
€678.02
+15.8%
6.5%€772.73€610.49€911.8018
Dec ’23€598.40
€693.17
+15.8%
6.8%€787.79€622.39€889.2018
Nov ’23€580.20
€730.35
+25.9%
7.7%€818.70€623.48€779.0018

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies