Allison Transmission Fair Value
AL
The fair market value of ALSN stock is 74.9 USD. Relative to the market price of 109.3 USD Allison Transmission is overvalued by 31.5%
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
Current ALSN share ticker price is 109.3 USD.
The fair value level of 74.9 USD can be considered as an effective entry point for long-term investors to start investing in ALSN 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
Current price is 31% higher its fair value
Current price is 45% higher its minimum value
Current price is 12% higher its maximum value
Market price:
ALSN 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
=
96.73 USD
Fair value
2
x
4
=
74.9 USD
Minimum value
3
x
4
=
60.12 USD
Allison Transmission Holdings Inc price metrics
18.88
Annual return (geometric mean)
32.48
Risk (standard deviation) of returns
β
1.01
Beta (volatility compared to market)