PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, TransDigm Group's PE Ratio without NRI is 44.69. TransDigm Group's 5-Year EBITDA growth rate is 8.90%. Therefore, TransDigm Group's PEG Ratio for today is 5.02.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for TransDigm Group's PEG Ratio or its related term are showing as below:
TDG'
s PEG Ratio Range Over the Past 10 Years
Min: 0.98 Med: 1.86 Max: 13.77
Current: 5.02
During the past 13 years, TransDigm Group's highest PEG Ratio was 13.77. The lowest was 0.98. And the median was 1.86.
TDG's PEG Ratio is ranked worse than 69.39% of 98
companies
in the Aerospace & Defense industry
Industry Median: 2.645
vs TDG: 5.02
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
TransDigm Group PEG Ratio Historical Data
The historical data trend for TransDigm Group's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, TransDigm Group's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TransDigm Group PEG Ratio Distribution
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's PEG Ratio distribution charts can be found below:
* The bar in red indicates where TransDigm Group's PEG Ratio falls into.
TransDigm Group PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
TransDigm Group's PEG Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
TransDigm Group (NYSE:TDG) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
TransDigm Group PEG Ratio Related Terms
Thank you for viewing the detailed overview of TransDigm Group's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
TransDigm Group (TransDigm Group) Business Description
TransDigm manufactures and services a diverse set of components and parts for commercial and military aircraft. The firm organizes itself in three segments: a power and control segment, airframes, and a small nonaviation segment, which serves mostly off-road vehicles and mining equipment. It operates as an acquisitive holding company that focuses its portfolio on firms that make proprietary products with substantial aftermarket demand. TransDigm regularly employs financial leverage to amplify its operating results.
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