Transdigm Group Incorporated (TDG)

NYSE · Industrials · Aerospace & Defense · USA

Transdigm Group Incorporated is a large cap company (market value between $10 billion and $200 billion) in the Aerospace & Defense industry.

TransDigm Group designs, produces and supplies highly engineered aircraft components for commercial and military aircraft worldwide. The company operates through three segments: Power & Control, providing electronic and mechanical systems; Airframe, developing cabin and structural components; and Non-aviation, serving space and industrial markets. Its customers include airlines, aircraft manufacturers, defense agencies and component distributors.

From its FY2025 annual report (Form 10-K)

Intrinsic value, DCF valuation, financial health and value investing analysis for the Transdigm Group Incorporated stock.

Our verdict on TDG

Overvalued: intrinsic value $911.32 per share, market price $1142.45, margin of safety -25.4% (as of 2026-10-19).

Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $911.32; the price of $1,142.45 is 25% above that value, and 78% of that value comes from beyond year five.

Leak Score: 55/100 on 10 of 12 signals (Weak Signal).

ETFs with the most weight in TDG

• Principal Focused Blue Chip ETF (BCHP): 4.8% of the fund
• iShares U.S. Aerospace & Defense ETF (ITA): 4.6% of the fund
• Argent Large Cap ETF (ABIG): 4.3% of the fund

17 more funds hold it; the full list is part of the paid plan.

More on TDG

• How TDG is valued
• TDG's Leak Score, signal by signal
• TDG's debt and financial health

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Cheaper than TDG in Aerospace & Defense

• V2X Inc (VVX): undervalued, 58% margin of safety
• AAR Corp (AIR): undervalued, 27% margin of safety
• Innovative Solutions And Support Inc (IA): undervalued, 21% margin of safety
• StandardAero Inc (SARO): slightly undervalued, 18% margin of safety
• Sturm, Ruger & Co Inc (RGR): slightly undervalued, 7% margin of safety
• Byrna Technologies Inc (BYRN): slightly undervalued, 6% margin of safety

7 more in this industry show a wider margin of safety.

Is TDG undervalued or overvalued?

TDG is overvalued (as of the 2026-10-19 close). Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $911.32; the price of $1,142.45 is 25% above that value, and 78% of that value comes from beyond year five.

What is the intrinsic value of TDG?

$911.32 per share (as of the 2026-10-19 close), against a market price of $1142.45. That is a margin of safety of -25.4%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.

What growth is priced into TDG stock?

The price asks for more growth than the company has delivered. It needs the future to beat the past. Yearly sales growth the price needs: 20.3%. Yearly sales growth it has sustained: 13.2%.

What is Transdigm Group Incorporated's Leak Score?

55 out of 100, which we rate "Weak Signal", on 10 of 12 value investing signals.