Latest Ratios: P/E Ratio 15.6x · EV/EBITDA 10.0x · 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 | $9.5B | $8.3B | $9.5B | $5.3B | $4.0B | $3.9B | $4.9B | $5.9B | $5.9B | $6.5B | $5.7B |
| Enterprise Value | $10.9B | $9.7B | $11.1B | $7.3B | $6.3B | $6.3B | $7.1B | $8.3B | $8.2B | $8.8B | $7.7B |
| P/E Ratio → | 15.63 | 13.36 | 13.00 | 7.86 | 7.52 | 8.80 | 16.46 | 9.84 | 9.19 | 12.82 | 26.53 |
| P/S Ratio | 3.16 | 2.76 | 2.95 | 1.74 | 1.44 | 1.62 | 2.36 | 2.20 | 2.16 | 2.86 | 3.10 |
| P/B Ratio | 5.22 | 4.46 | 5.76 | 4.29 | 4.57 | 6.13 | 6.50 | 7.61 | 8.91 | 9.38 | 5.28 |
| P/FCF | 14.64 | 12.82 | 14.45 | 8.03 | 8.15 | 8.46 | 11.02 | 8.80 | 7.96 | 11.39 | 10.96 |
| P/OCF | 11.53 | 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 | 9.96 | 8.89 | 10.02 | 6.76 | 6.69 | 7.68 | 10.47 | 7.83 | 7.51 | 10.71 | 12.19 |
| EV / EBIT | 11.23 | 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 | 6.4% | 7.5% | 7.7% | 12.7% | 13.3% | 11.4% | 6.1% | 10.2% | 10.9% | 7.8% | 3.8% |
| FCF Yield | 6.8% | 7.8% | 6.9% | 12.5% | 12.3% | 11.8% | 9.1% | 11.4% | 12.6% | 8.8% | 9.1% |
| Buyback Yield | 3.5% | 3.9% | 2.7% | 5.1% | 7.0% | 13.2% | 4.6% | 6.6% | 10.4% | 13.7% | 4.5% |
| Total Shareholder Yield | 4.4% | 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
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ALSN stock.
Allison Transmission Holdings, Inc.'s current P/E ratio is 15.6x. The historical average is 15.5x. This places it at the 64th percentile of its historical range.
Allison Transmission Holdings, Inc.'s current EV/EBITDA is 10.0x. 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 15.6x. This is at the 64th 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 0.93% 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
EV transition and leverage
Metrics are mathematically derived from official filings.
Margin Resilience Amidst Revenue Dip
Despite a 6.7% TTM revenue decline, ALSN's gross margin held at 46.2% in Q2 2026, near its structural 48% level, per recent financial statements, indicating sustained pricing power.
The gross margin contraction from 49.4% in Q2 2025 to 46.2% in Q2 2026 suggests modest mix shift or input cost pressure, but the absolute level remains far above typical Tier-1 suppliers. Operating margin of 32.7% in Q2 2026, though down from 32.2% a year earlier, reflects high operating leverage and disciplined cost control. Net margin of 21.0% is supported by a low tax rate and non-recurring items, so investors should focus on gross and operating margins as the truer measures of earning power.
ROIC Compression Post-Acquisition
ROIC fell to 3.6% in Q2 2026 from 6.1% in Q2 2024, per quarterly data, as the $2.6B acquisition expanded the capital base faster than earnings, suggesting a temporary dilution of returns.
The decline in ROIC from a 6% range to 3.6% is driven by a surge in invested capital from the acquisition, not by margin deterioration, as operating margins remain strong. ROE also dropped to 9.3% from 13.2% over the same period, reflecting both lower net income and higher equity from retained earnings. If the acquired assets generate synergies, ROIC may recover, but the current trend indicates a period of capital absorption rather than compounding.
Working Capital Cycle Lengthens
ALSN's cash conversion cycle extended to 109 days in Q2 2026 from 54 days in Q2 2024, per reported figures, driven by a spike in DSO to 95 days and DIO to 165 days, signaling potential inventory and receivables buildup.
The sharp increase in DSO and DIO in Q2 2026 is anomalous relative to the prior eight quarters, where DSO hovered around 40-47 days and DIO around 60-85 days. This may reflect seasonal or acquisition-related distortions, but it warrants monitoring as it could indicate slowing demand or collection issues. DPO also rose to 151 days, partially offsetting the cash drag, yet the net effect is a significant elongation of the operating cycle, which may pressure free cash flow if not reversed.
Leverage Elevated by Acquisition
Debt-to-equity jumped to 2.08 in Q2 2026 from 1.63 a year earlier, per balance sheet data, while net debt-to-EBITDA sits at 1.9x, near the high end of peers, indicating increased financial risk.
The $2.6B acquisition in Q1 2026 was largely debt-funded, lifting total debt to $4.1B and compressing interest coverage to 5.19x from 11.64x in Q2 2024. While coverage remains adequate, the trend is concerning if revenue recovery stalls or interest rates stay elevated. The D/E ratio of 2.08 is well above the peer average, and the company's cash balance of $399M is thin relative to debt, suggesting limited buffer for further shocks.
Liquidity Thins After Cash Deployment
Current ratio fell to 1.81 in Q2 2026 from 4.85 in Q4 2025, per balance sheet data, as cash dropped to $399M, indicating a reduced but still adequate liquidity cushion.
The quick ratio of 1.17 suggests that even without inventory, current assets cover current liabilities, but the reliance on inventory is higher than before. The acquisition consumed most of the cash reserves, leaving the company more dependent on operating cash flow and credit lines. Under a severe demand downturn, the current ratio could approach 1.0, making refinancing risk a key monitor.
Misapplied EV/EBITDA in Cyclical Downturn
EV/EBITDA of 10.71 appears reasonable, but it understates leverage risk because EBITDA is near cyclical lows, per reported figures, and the metric ignores the capital intensity of the acquisition.
With TTM revenue down 6.7%, EBITDA is depressed, making the EV/EBITDA multiple look artificially low. A more appropriate metric is EV/EBIT or EV/EBITDA on normalized mid-cycle earnings, which would likely show a higher multiple. Additionally, the metric does not capture the $2.6B acquisition's integration risk or the potential for goodwill impairment, so investors should adjust for these factors when comparing to peers.