Allison Transmission Fair Value
1A
The fair market value of 1A7.MU stock is 70.56 EUR. Relative to the market price of 0 EUR Allison Transmission is overvalued by 36.4%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Allison Transmission Valuation
The fair value level of 70.56 EUR can be considered as an effective entry point for long-term investors to start investing in 1A7.MU stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Market price:
1A7.MU stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Allison Transmission Holdings Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
11.7
2
Median P/E over 5 years
9.06
3
Minimum P/E over 5 years
7.27
4
Earning per share (last 12 months)
8.27 USD
Maximum value
1
x
4
=
91.13 EUR
Fair value
2
x
4
=
70.56 EUR
Minimum value
3
x
4
=
56.64 EUR
Allison Transmission Holdings Inc price metrics
21.21
Annual return (geometric mean)
32.52
Risk (standard deviation) of returns
β
0.65
Beta (volatility compared to market)