TransDigm Group Incorporated (TDG) Financial Ratios
24 years of historical data (2002–2025) · Industrials · Aerospace & Defense
EV/EBITDA
↓
22.56
-2% vs avg
5yr avg: 23.05
30Y Low9.0·High26.6
P/FCF
↓
41.31
-0% vs avg
5yr avg: 41.42
30Y Low9.6·High45.1
P/B Ratio
N/A
—
5yr avg: N/A
30Y Low2.6·High6.3
ROE
N/A
—
5yr avg: N/A
30Y Low-73%·High32%
Debt/EBITDA
↓
6.63
↓-12% vs avg
5yr avg: 7.52
30Y Low3.7·High10.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TDG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
TransDigm Group Incorporated trades at 41.4x earnings, 12% below its 5-year average of 46.9x, sitting at the 70th percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 62%. On a free-cash-flow basis, the stock trades at 41.3x P/FCF, roughly in line with the 5-year average of 41.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $75.0B | $76.7B | $82.5B | $48.2B | $30.5B | $36.5B | $27.2B | $29.3B | $20.7B | $14.2B | $16.2B |
| Enterprise Value | $102.2B | $103.9B | $101.1B | $64.5B | $47.4B | $51.7B | $42.5B | $44.7B | $31.5B | $25.3B | $24.8B |
| P/E Ratio → | 41.41 | 41.09 | 55.70 | 38.28 | 39.16 | 60.09 | 57.44 | 37.62 | 22.80 | 32.44 | 27.83 |
| P/S Ratio | 8.49 | 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 | 41.31 | 42.24 | 43.88 | 39.02 | 36.85 | 45.14 | 24.57 | 32.06 | 21.82 | 19.78 | 25.98 |
| P/OCF | 36.81 | 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
TDG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
TransDigm Group Incorporated's enterprise value stands at 22.6x EBITDA, roughly in line with its 5-year average of 23.1x. The Industrials sector median is 13.8x, placing the stock at a 63% premium on an enterprise-value basis.
| 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 | 22.56 | 22.93 | 26.31 | 20.22 | 19.19 | 26.60 | 20.91 | 19.98 | 17.46 | 15.52 | 17.45 |
| EV / EBIT | 24.55 | 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 |
TDG Profitability
Margins and return-on-capital ratios measuring operating efficiency
TransDigm Group Incorporated earns an operating margin of 47.2%, significantly above the Industrials sector average of 4.3%. Operating margins have expanded from 44.4% to 47.2% over the past 3 years, signaling improving operational efficiency. ROIC of 20.9% represents excellent returns on invested capital versus a sector median of 6.1%.
Margins
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% |
Return on Capital
| 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% |
TDG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
TransDigm Group Incorporated carries a Debt/EBITDA ratio of 6.6x, which is highly leveraged (105% above the sector average of 3.2x). Net debt stands at $27.2B ($30.0B total debt minus $2.8B cash). Interest coverage of just 2.7x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| 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 |
TDG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
TransDigm Group Incorporated's current ratio of 3.21x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 2.25x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 4.27x to 3.21x over the past 3 years.
| 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 |
TDG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
TransDigm Group Incorporated returns 13.1% to shareholders annually — split between a 12.5% dividend yield and 0.7% buyback yield. The payout ratio exceeds 100% at 464.3%, meaning the company is paying out more than it earns — this level is unsustainable long-term without earnings recovery. The earnings yield of 2.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 12.5% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 2.4% | 1.8% | 2.6% | 2.6% | 1.7% | 1.7% | 2.7% | 4.4% | 3.1% | 3.6% |
| FCF Yield | 2.4% | 2.4% | 2.3% | 2.6% | 2.7% | 2.2% | 4.1% | 3.1% | 4.6% | 5.1% | 3.8% |
| Buyback Yield | 0.7% | 0.7% | 0.0% | 0.0% | 3.0% | 0.4% | 0.1% | 0.0% | 0.0% | 2.7% | 1.3% |
| Total Shareholder Yield | 13.1% | 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 |
Peer Comparison
Compare TDG with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TDGYou | $75B | 41.4 | 22.6 | 41.3 | 60.1% | 47.2% | — | 20.9% | 6.6 |
 HEI | $47B | 68.8 | 40.3 | 54.5 | 39.8% | 22.7% | 17.1% | 12.6% | 1.8 |
 WWD | $26B | 59.8 | 41.7 | 75.3 | 26.8% | 14.3% | 18.6% | 13.3% | 1.2 |
 CW | $28B | 60.0 | 46.1 | 51.5 | 37.2% | 18.2% | 19.4% | 14.1% | 2.1 |
 KTOS | $10B | 417.0 | 112.5 | — | 22.1% | 2.1% | 1.3% | 1.4% | 2.1 |
 DRS | $12B | 44.7 | 27.5 | 54.2 | 23.2% | 9.5% | 10.5% | 10.5% | 1.1 |
 SPR | $5B | -2.2 | — | — | -21.7% | -28.3% | — | -50.9% | — |
 HAYW | $3B | 22.1 | 10.0 | 14.4 | 45.6% | 21.1% | 10.0% | 10.2% | 0.0 |
 AIR | $5B | 385.4 | 26.2 | 3812.5 | 19.0% | 6.7% | 1.0% | 6.4% | 4.4 |
 VSEC | $5B | 87.0 | 32.0 | 877.8 | 11.9% | 11.2% | 4.4% | 5.9% | 2.1 |
 BA | $176B | 89.8 | — | — | 4.8% | -6.1% | 289.7% | -9.5% | — |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 24 years · Updated daily
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TDG — Frequently Asked Questions
Quick answers to the most common questions about buying TDG stock.
What is TransDigm Group Incorporated's P/E ratio?
TransDigm Group Incorporated's current P/E ratio is 41.4x. The historical average is 36.7x. This places it at the 70th percentile of its historical range.
What is TransDigm Group Incorporated's EV/EBITDA?
TransDigm Group Incorporated's current EV/EBITDA is 22.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.9x.
Is TDG stock overvalued?
Based on historical data, TransDigm Group Incorporated is trading at a P/E of 41.4x. This is at the 70th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is TransDigm Group Incorporated's dividend yield?
TransDigm Group Incorporated's current dividend yield is 12.46% with a payout ratio of 464.3%.
What are TransDigm Group Incorporated's profit margins?
TransDigm Group Incorporated has 60.1% gross margin and 47.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does TransDigm Group Incorporated have?
TransDigm Group Incorporated's Debt/EBITDA ratio is 6.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.