TransDigm Fair Value
TD
The fair market value of TDG stock is 1206.91 USD. Relative to the market price of 1389.85 USD TransDigm Group is overvalued by 13.2%
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
TransDigm Valuation
Current TDG share ticker price is 1389.85 USD.
The fair value level of 1206.91 USD can be considered as an effective entry point for long-term investors to start investing in TDG 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 13% higher its fair value
Current price is 27% higher its minimum value
Current price is 34% lower its maximum value
Market price:
TDG stock is overvalued
It means the current price may concern as a Risky Entry Point
TransDigm Group 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
66.17
2
Median P/E over 5 years
42.97
3
Minimum P/E over 5 years
36.08
4
Earning per share (last 12 months)
28.09 USD
Maximum value
1
x
4
=
1 858.59 USD
Fair value
2
x
4
=
1 206.91 USD
Minimum value
3
x
4
=
1 013.24 USD
TransDigm Group Inc price metrics
21.2
Annual return (geometric mean)
40.3
Risk (standard deviation) of returns
β
1.4
Beta (volatility compared to market)