Allison Transmission Holdings Inc (ALSN) is fairly valued and Autozone Inc (AZO) is fairly valued.
Against our estimates of intrinsic value, AZO trades at the wider discount: a margin of safety of +3%, against +2% for ALSN.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $118.03; the price of $115.38 is 2% below that value, and 78% of that value comes from beyond year five.
Leak Score 30/100 on 3 of 12 signals
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $2980.07; the price of $2894.73 is 3% below that value, and 81% of that value comes from beyond year five.
Leak Score 53/100 on 8 of 12 signals
| Metric | ALSN | AZO |
|---|---|---|
| Verdict | Fairly valued | Fairly valued |
| Price | $115.38 | $2894.73 |
| Intrinsic value | $118.03 | $2980.07 |
| Margin of safety | +2% | +3% |
| Leak Score | 30/100 (3/12) | 53/100 (8/12) |
| Market cap | $9.5B | $47.3B |
| Revenue growth, 5 years | 7.7% | 6.8% |
| Operating margin | 21.4% | 18.3% |
| Net margin | 12.0% | 12.7% |
| Return on equity | 28.4% | — |
| Debt to equity | 2.14 | — |
| P/E | 18.3x | 18.9x |
| Forward P/E | 10.5x | 14.7x |
| P/B | 4.8x | — |
| Dividend yield | 1.0% | — |