Latest Ratios: P/E Ratio 34.5x · EV/EBITDA 19.6x · ROE N/A. (2002–2025 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 | $61.8B | $76.7B | $82.5B | $48.2B | $30.5B | $36.5B | $27.2B | $29.3B | $20.7B | $14.2B | $16.2B |
| Enterprise Value | $89.0B | $103.9B | $101.1B | $64.5B | $47.4B | $51.7B | $42.5B | $44.7B | $31.5B | $25.3B | $24.8B |
| P/E Ratio → | 34.45 | 41.09 | 55.70 | 38.28 | 39.16 | 60.09 | 57.44 | 37.62 | 22.80 | 32.44 | 27.83 |
| P/S Ratio | 7.00 | 8.69 | 10.39 | 7.32 | 5.63 | 7.60 | 5.33 | 5.61 | 5.43 | 4.05 | 5.12 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 34.04 | 42.24 | 43.88 | 39.02 | 36.85 | 45.14 | 24.57 | 32.06 | 21.82 | 19.78 | 25.98 |
| P/OCF | 30.33 | 37.64 | 40.34 | 35.07 | 32.22 | 39.95 | 22.44 | 28.85 | 20.25 | 18.00 | 24.27 |
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 | — | 11.77 | 12.74 | 9.80 | 8.72 | 10.78 | 8.34 | 8.56 | 8.27 | 7.22 | 7.83 |
| EV / EBITDA | 19.65 | 22.93 | 26.31 | 20.22 | 19.19 | 26.60 | 20.91 | 19.98 | 17.46 | 15.52 | 17.45 |
| EV / EBIT | 21.38 | 24.74 | 28.88 | 22.40 | 21.50 | 29.15 | 24.05 | 23.19 | 19.04 | 17.14 | 19.62 |
| EV / FCF | — | 57.23 | 53.79 | 52.20 | 57.12 | 63.99 | 38.39 | 48.94 | 33.20 | 35.26 | 39.75 |
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 | 60.1% | 60.1% | 58.8% | 58.3% | 57.1% | 52.4% | 51.9% | 51.4% | 55.6% | 54.2% | 52.3% |
| Operating Margin | 47.2% | 47.2% | 44.5% | 44.4% | 40.8% | 35.2% | 34.3% | 38.6% | 44.0% | 42.5% | 41.1% |
| Net Profit Margin | 23.5% | 23.5% | 21.6% | 19.7% | 16.0% | 14.2% | 13.7% | 14.9% | 23.8% | 12.5% | 18.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | — |
| ROA | 8.6% | 8.6% | 7.5% | 6.8% | 4.6% | 3.6% | 4.0% | 5.5% | 8.2% | 4.2% | 6.1% |
| ROIC | 20.9% | 20.9% | 19.9% | 16.0% | 13.1% | 10.7% | 11.0% | 14.0% | 14.7% | 13.9% | 13.4% |
| ROCE | 20.8% | 20.8% | 18.8% | 16.7% | 12.9% | 9.8% | 11.1% | 15.5% | 16.4% | 15.6% | 14.7% |
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 | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 6.63 | 6.63 | 6.48 | 6.19 | 8.03 | 10.30 | 9.85 | 7.55 | 7.13 | 7.21 | 7.16 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 6.01 | 6.01 | 4.85 | 5.11 | 6.81 | 7.83 | 7.53 | 6.89 | 5.99 | 6.82 | 6.05 |
| Debt / FCF | — | 14.99 | 9.91 | 13.18 | 20.28 | 18.85 | 13.82 | 16.89 | 11.39 | 15.48 | 13.77 |
| Interest Coverage | 2.67 | 2.67 | 2.60 | 2.36 | 2.04 | 1.62 | 1.67 | 2.23 | 2.47 | 2.31 | 2.54 |
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 | 3.21 | 3.21 | 1.58 | 4.27 | 3.96 | 4.23 | 4.31 | 3.16 | 4.06 | 2.45 | 3.89 |
| Quick Ratio | 2.25 | 2.25 | 1.29 | 3.24 | 3.03 | 3.51 | 3.51 | 2.36 | 3.17 | 1.61 | 2.93 |
| Cash Ratio | 1.29 | 1.29 | 0.99 | 2.20 | 2.10 | 2.88 | 2.92 | 0.95 | 2.30 | 0.75 | 2.11 |
| Asset Turnover | — | 0.39 | 0.31 | 0.33 | 0.30 | 0.25 | 0.28 | 0.32 | 0.31 | 0.35 | 0.30 |
| Inventory Turnover | 1.68 | 1.68 | 1.74 | 1.70 | 1.75 | 1.93 | 1.91 | 2.06 | 2.10 | 2.20 | 2.09 |
| Days Sales Outstanding | — | 66.83 | 63.48 | 68.18 | 65.01 | 60.17 | 51.50 | 74.63 | 67.45 | 66.26 | 66.33 |
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 | 15.0% | 12.6% | 2.5% | 0.1% | 3.6% | 0.2% | 7.1% | 5.8% | 0.3% | 18.2% | 0.0% |
| Payout Ratio | 464.3% | 464.3% | 118.9% | 2.9% | 126.0% | 10.7% | 275.8% | 219.8% | 6.2% | 589.9% | 0.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 2.4% | 1.8% | 2.6% | 2.6% | 1.7% | 1.7% | 2.7% | 4.4% | 3.1% | 3.6% |
| FCF Yield | 2.9% | 2.4% | 2.3% | 2.6% | 2.7% | 2.2% | 4.1% | 3.1% | 4.6% | 5.1% | 3.8% |
| Buyback Yield | 0.8% | 0.7% | 0.0% | 0.0% | 3.0% | 0.4% | 0.1% | 0.0% | 0.0% | 2.7% | 1.3% |
| Total Shareholder Yield | 15.8% | 13.2% | 2.5% | 0.1% | 6.6% | 0.6% | 7.2% | 5.8% | 0.3% | 20.9% | 1.3% |
| Shares Outstanding | — | $58M | $58M | $57M | $58M | $58M | $57M | $56M | $56M | $56M | $56M |
Includes 30+ ratios · 24 years · Updated daily
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Quick answers to the most common questions about buying TDG stock.
TransDigm Group Incorporated's current P/E ratio is 34.5x. The historical average is 36.7x. This places it at the 50th percentile of its historical range.
TransDigm Group Incorporated's current EV/EBITDA is 19.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.9x.
Based on historical data, TransDigm Group Incorporated is trading at a P/E of 34.5x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
TransDigm Group Incorporated's current dividend yield is 14.97% with a payout ratio of 464.3%.
TransDigm Group Incorporated has 60.1% gross margin and 47.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
TransDigm Group Incorporated's Debt/EBITDA ratio is 6.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Elevated leverage in high-rate environment
Metrics are mathematically derived from official filings.
Premium Multiple Reflects Unique Cash Flow Profile
TransDigm's forward EV/EBITDA of 20.07x and P/E of 28.88x represent a significant premium to operational peers like Woodward (33.25x EV/EBITDA) and Curtiss-Wright (30.12x), suggesting the market prices its unique aftermarket cash flow stream as a high-quality compounder rather than a cyclical industrial.
The valuation premium appears justified by the company's industry-leading gross margins and recurring revenue base, which are structurally superior to peers. However, the PEG ratio of 1.19 indicates the market is pricing in sustained, above-average earnings growth, which may be vulnerable to any slowdown in the commercial aerospace recovery or a shift in the M&A-driven growth model.
Structural Margin Dominance vs. Peers
TransDigm's gross margin consistently near 60% is nearly double that of peer Woodward (26.8%) and significantly above Heico (39.8%), underscoring the structural pricing power derived from its proprietary, sole-source product portfolio.
The operating margin, consistently above 45%, reflects exceptional overhead discipline and high incremental margins from its decentralized model. This profitability profile is not cyclical but structural, driven by the value-based pricing of certified components where the cost of raw materials is secondary to the utility value for the airline.
ROIC Constrained by Acquisition-Fueled Capital Base
Despite industry-leading operating margins, TransDigm's ROIC has hovered between 4.4% and 5.1% over the past ten quarters, a level that appears low relative to its profitability and suggests the company's aggressive acquisition strategy is deploying capital at returns that are merely adequate, not exceptional.
The low ROIC is a direct consequence of the massive intangible asset base (46% of total assets) and negative equity from special dividends, which inflate the invested capital denominator. This dynamic indicates that while the core business generates high returns, the overall corporate return on capital is diluted by the financing structure and acquisition premiums paid.
Leverage Constrained by Cash Accumulation
TransDigm's net debt/EBITDA of 5.92x and a D/EBITDA ratio that has risen to 26.30x in 2026Q3 indicate a highly leveraged balance sheet, where debt service consumes a significant portion of operating income and limits financial flexibility.
The interest coverage ratio of 2.39x, while adequate, is trending downward from a peak of 2.79x in 2025Q4, suggesting that rising interest expenses are beginning to pressure earnings. This leverage profile makes the company particularly sensitive to refinancing risk in a sustained high-rate environment and could constrain its ability to execute large, debt-funded acquisitions or special dividends.
The Misleading Power of the P/E Ratio
The P/E ratio is the most commonly misapplied metric for TransDigm, as it is heavily distorted by significant non-cash amortization charges from acquisitions and the company's negative equity base, which makes the denominator volatile and unrepresentative of true economic earnings.
Investors should instead focus on EV/EBITDA and Free Cash Flow yield, which better capture the cash-generating power of the business and are not affected by the capital structure or non-cash accounting charges. The P/E ratio's volatility, as seen in the quarterly EPS swings, obscures the underlying stability of the company's operating cash flow and its ability to service its debt.