Latest Ratios: P/E Ratio 16.8x · EV/EBITDA 8.6x · ROE 35.4%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.7B | $8.3B | $9.5B | $5.3B | $4.0B | $3.9B | $4.9B | $5.9B | $5.9B | $6.5B | $5.7B |
| Enterprise Value | $11.1B | $9.7B | $11.1B | $7.3B | $6.3B | $6.3B | $7.1B | $8.3B | $8.2B | $8.8B | $7.7B |
| P/E Ratio → | 16.84 | 13.36 | 13.00 | 7.86 | 7.52 | 8.80 | 16.46 | 9.84 | 9.19 | 12.82 | 26.53 |
| P/S Ratio | 2.14 | 2.76 | 2.95 | 1.74 | 1.44 | 1.62 | 2.36 | 2.20 | 2.16 | 2.86 | 3.10 |
| P/B Ratio | 5.32 | 4.46 | 5.76 | 4.29 | 4.57 | 6.13 | 6.50 | 7.61 | 8.91 | 9.38 | 5.28 |
| P/FCF | 11.75 | 12.82 | 14.45 | 8.03 | 8.15 | 8.46 | 11.02 | 8.80 | 7.96 | 11.39 | 10.96 |
| P/OCF | 11.76 | 10.10 | 11.87 | 6.75 | 6.08 | 6.13 | 8.76 | 7.02 | 7.01 | 9.82 | 9.65 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.24 | 3.46 | 2.39 | 2.27 | 2.62 | 3.43 | 3.07 | 3.01 | 3.89 | 4.16 |
| EV / EBITDA | 8.57 | 8.89 | 10.02 | 6.76 | 6.69 | 7.68 | 10.47 | 7.83 | 7.51 | 10.71 | 12.19 |
| EV / EBIT | 11.43 | 10.81 | 11.31 | 7.77 | 8.24 | 9.14 | 13.47 | 9.19 | 8.81 | 13.98 | 17.32 |
| EV / FCF | — | 15.02 | 16.94 | 11.01 | 12.83 | 13.67 | 16.01 | 12.28 | 11.07 | 15.53 | 14.72 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.4% | 48.4% | 47.4% | 48.4% | 46.8% | 47.7% | 48.0% | 51.7% | 52.4% | 50.0% | 47.0% |
| Operating Margin | 32.3% | 32.3% | 30.8% | 30.3% | 28.3% | 27.9% | 25.7% | 33.1% | 34.0% | 28.8% | 24.6% |
| Net Profit Margin | 20.7% | 20.7% | 22.7% | 22.2% | 19.2% | 18.4% | 14.4% | 22.4% | 23.6% | 22.3% | 11.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 35.4% | 35.4% | 50.7% | 63.9% | 70.4% | 63.6% | 38.9% | 83.9% | 94.8% | 57.0% | 19.0% |
| ROA | 10.9% | 10.9% | 14.1% | 13.9% | 11.6% | 9.9% | 6.7% | 13.9% | 15.1% | 12.0% | 5.0% |
| ROIC | 22.2% | 22.2% | 22.9% | 21.7% | 19.0% | 16.7% | 13.1% | 22.0% | 23.1% | 16.1% | 10.7% |
| ROCE | 18.6% | 18.6% | 21.2% | 21.1% | 19.1% | 16.5% | 13.1% | 22.7% | 24.3% | 17.0% | 11.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.56 | 1.56 | 1.47 | 2.04 | 2.89 | 3.99 | 3.35 | 3.25 | 3.83 | 3.70 | 2.00 |
| Debt / EBITDA | 2.66 | 2.66 | 2.17 | 2.35 | 2.69 | 3.09 | 3.72 | 2.40 | 2.32 | 3.10 | 3.44 |
| Net Debt / Equity | — | 0.76 | 0.99 | 1.59 | 2.62 | 3.79 | 2.94 | 3.01 | 3.48 | 3.41 | 1.81 |
| Net Debt / EBITDA | 1.30 | 1.30 | 1.47 | 1.83 | 2.44 | 2.93 | 3.26 | 2.22 | 2.11 | 2.86 | 3.11 |
| Debt / FCF | — | 2.20 | 2.49 | 2.98 | 4.68 | 5.22 | 4.99 | 3.48 | 3.11 | 4.14 | 3.76 |
| Interest Coverage | 9.20 | 9.20 | 11.08 | 8.73 | 6.47 | 5.93 | 3.87 | 6.73 | 7.65 | 6.12 | 4.36 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.85 | 4.85 | 3.04 | 2.50 | 1.80 | 1.46 | 2.03 | 1.65 | 1.70 | 1.52 | 1.60 |
| Quick Ratio | 4.17 | 4.17 | 2.42 | 1.94 | 1.34 | 1.02 | 1.54 | 1.17 | 1.30 | 1.15 | 1.23 |
| Cash Ratio | 3.25 | 3.25 | 1.54 | 1.11 | 0.48 | 0.28 | 0.83 | 0.46 | 0.54 | 0.48 | 0.60 |
| Asset Turnover | — | 0.49 | 0.60 | 0.60 | 0.59 | 0.54 | 0.46 | 0.61 | 0.64 | 0.54 | 0.44 |
| Inventory Turnover | 4.92 | 4.92 | 5.38 | 5.67 | 6.57 | 6.16 | 5.98 | 6.55 | 7.59 | 7.34 | 7.77 |
| Days Sales Outstanding | — | 40.38 | 40.74 | 42.81 | 47.85 | 45.74 | 39.99 | 34.23 | 37.54 | 40.99 | 39.05 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.1% | 0.9% | 1.6% | 2.0% | 2.1% | 1.6% | 1.2% | 1.4% | 1.4% | 1.8% |
| Payout Ratio | 14.6% | 14.6% | 11.9% | 12.3% | 15.1% | 18.3% | 26.1% | 12.1% | 12.5% | 17.7% | 46.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 7.5% | 7.7% | 12.7% | 13.3% | 11.4% | 6.1% | 10.2% | 10.9% | 7.8% | 3.8% |
| FCF Yield | 8.5% | 7.8% | 6.9% | 12.5% | 12.3% | 11.8% | 9.1% | 11.4% | 12.6% | 8.8% | 9.1% |
| Buyback Yield | 3.4% | 3.9% | 2.7% | 5.1% | 7.0% | 13.2% | 4.6% | 6.6% | 10.4% | 13.7% | 4.5% |
| Total Shareholder Yield | 4.3% | 5.0% | 3.6% | 6.7% | 9.0% | 15.3% | 6.2% | 7.8% | 11.7% | 15.1% | 6.3% |
| Shares Outstanding | — | $85M | $88M | $91M | $96M | $107M | $114M | $123M | $134M | $150M | $169M |
Includes 30+ ratios · 15 years · Updated daily
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Quick answers to the most common questions about buying ALSN stock.
Allison Transmission Holdings, Inc.'s current P/E ratio is 16.8x. The historical average is 15.5x. This places it at the 71th percentile of its historical range.
Allison Transmission Holdings, Inc.'s current EV/EBITDA is 8.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
Allison Transmission Holdings, Inc.'s return on equity (ROE) is 35.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 45.3%.
Based on historical data, Allison Transmission Holdings, Inc. is trading at a P/E of 16.8x. This is at the 71th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Allison Transmission Holdings, Inc.'s current dividend yield is 0.92% with a payout ratio of 14.6%.
Allison Transmission Holdings, Inc. has 48.4% gross margin and 32.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Allison Transmission Holdings, Inc.'s Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Elevated leverage amid recovery
Metrics are mathematically derived from official filings.
Discounted Multiples Reflect Cyclical Caution
According to reported market data, ALSN trades at 15.89 times trailing earnings and 10.10 times EV/EBITDA, a discount to the 21 to 37 times earnings range seen among peers such as Astec and BorgWarner, suggesting the market is pricing in cyclical risk rather than the quarterly earnings momentum.
The 0.70 PEG ratio implies the market expects earnings growth to outpace the current multiple, yet the trailing revenue decline of about 6.7% argues for caution in extrapolating that growth. Relative to its own history, the multiple appears compressed, which may reflect investor skepticism about the durability of the Q2 2026 beat and the EV transition. Investors should monitor whether forward EPS estimates hold, since the valuation case depends on recovery continuity rather than a single strong quarter.
Margin Volatility Obscures Underlying Earning Power
As reported in the quarterly income statements, ALSN's gross margin swung between 27.2% and 49.4% over the ten quarters, while operating margin ranged from 15.1% to 32.7%, indicating earnings power that appears highly sensitive to volume absorption and product mix.
The 2026Q1 trough and 2026Q2 peak suggest that quarterly margins are driven more by timing and absorption than by a structural shift in pricing power. Operating margin, which stripped of non-recurring items appears closer to the 30% range seen across most of 2024 and 2025, is likely a better gauge of true earning power than net margin. Analysts should normalize across a full cycle rather than anchor to any single quarter.
Debt Service Comfortable but Leverage Elevated
Based on ALSN's reported figures, interest coverage remained above 5 times in 2026Q3 at 5.67 times, but net debt to EBITDA of 1.9x and a Debt/Equity ratio that climbed from 1.30 to 2.24 over recent quarters suggest leverage is rising faster than equity.
Interest coverage has compressed from above 12 times in 2025Q2 to the mid-single digits, which warrants monitoring even though current debt service appears manageable. The rise in leverage coincides with a rebuild in equity, meaning the ratio shift is partly a function of balance sheet mechanics rather than pure borrowing. If revenue recovery stalls, the combination of higher debt and lower coverage could constrain financial flexibility.
Cash Buildup Offsets Thinning Working Capital Cushion
As reported in financial statements, ALSN's current ratio declined from 4.85 in 2025Q4 to 1.77 in 2026Q3, while quick ratio fell from 4.17 to 1.16, though cash rose to roughly $497M, suggesting near-term liquidity remains adequate but the working capital buffer has thinned.
The sharp drop in current and quick ratios over recent quarters appears driven by shifts in current liabilities and debt classification rather than a deterioration in operating cash generation. The quick ratio of 1.16 remains above 1.0, indicating the company can cover current obligations without relying on inventory liquidation. Under a severe downturn, the thinner cushion would likely make the company more reliant on cash flow timing and credit access.
Recent Beat May Mask Weak Trailing Trend
The strongest challenge to the bullish reading is that trailing revenue still shows a roughly 6.7% decline and Return on Invested Capital has fallen to 4.0%, which sits below the 5.5 to 6.1% range seen through 2024 and 2025 and below peer BorgWarner's 12.9%.
The Q2 2026 EPS beat and raised guidance may reflect a stabilizing cycle, but ROIC compression suggests capital is being deployed less efficiently than in prior years. The gap versus BorgWarner indicates that the company's returns, while structurally strong on margins, may not be translating into superior capital efficiency. Investors should watch whether ROIC recovers toward its historical range as the revenue recovery matures.