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TransDigm Group (TransDigm Group) Cyclically Adjusted Price-to-FCF : 74.02 (As of Apr. 27, 2024)


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What is TransDigm Group Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), TransDigm Group's current share price is $1259.15. TransDigm Group's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2023 was $17.01. TransDigm Group's Cyclically Adjusted Price-to-FCF for today is 74.02.

The historical rank and industry rank for TransDigm Group's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

TDG' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 24.01   Med: 44.01   Max: 73.87
Current: 73.87

During the past years, TransDigm Group's highest Cyclically Adjusted Price-to-FCF was 73.87. The lowest was 24.01. And the median was 44.01.

TDG's Cyclically Adjusted Price-to-FCF is ranked worse than
70.91% of 110 companies
in the Aerospace & Defense industry
Industry Median: 35.865 vs TDG: 73.87

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

TransDigm Group's adjusted free cash flow per share data for the three months ended in Sep. 2023 was $7.391. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $17.01 for the trailing ten years ended in Sep. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


TransDigm Group Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for TransDigm Group's Cyclically Adjusted Price-to-FCF 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.

* Premium members only.

TransDigm Group Cyclically Adjusted Price-to-FCF Chart

TransDigm Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.93 39.25 45.77 34.32 49.56

TransDigm Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.14 46.36 53.97 49.56 -

Competitive Comparison of TransDigm Group's Cyclically Adjusted Price-to-FCF

For the Aerospace & Defense subindustry, TransDigm Group's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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's Cyclically Adjusted Price-to-FCF Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where TransDigm Group's Cyclically Adjusted Price-to-FCF falls into.



TransDigm Group Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

TransDigm Group's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=1259.15/17.01
=74.02

* 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.

TransDigm Group's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2023 is calculated as:

For example, TransDigm Group's adjusted Free Cash Flow per Share data for the three months ended in Sep. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Sep. 2023 (Change)*Current CPI (Sep. 2023)
=7.391/129.8595*129.8595
=7.391

Current CPI (Sep. 2023) = 129.8595.

TransDigm Group Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201312 1.888 98.326 2.493
201403 1.668 99.695 2.173
201406 2.122 100.560 2.740
201409 3.225 100.428 4.170
201412 3.195 99.070 4.188
201503 -0.369 99.621 -0.481
201506 3.060 100.684 3.947
201509 2.348 100.392 3.037
201512 2.966 99.792 3.860
201603 1.711 100.470 2.211
201606 3.360 101.688 4.291
201609 3.352 101.861 4.273
201612 3.609 101.863 4.601
201703 2.649 102.862 3.344
201706 2.687 103.349 3.376
201709 3.981 104.136 4.964
201712 4.991 104.011 6.231
201803 2.613 105.290 3.223
201806 3.921 106.317 4.789
201809 5.542 106.507 6.757
201812 5.435 105.998 6.658
201903 1.829 107.251 2.215
201906 4.956 108.070 5.955
201909 3.996 108.329 4.790
201912 7.073 108.420 8.472
202003 2.404 108.902 2.867
202006 6.719 108.767 8.022
202009 3.140 109.815 3.713
202012 4.442 109.897 5.249
202103 1.182 111.754 1.373
202106 3.973 114.631 4.501
202109 4.521 115.734 5.073
202112 4.291 117.630 4.737
202203 0.934 121.301 1.000
202206 4.828 125.017 5.015
202209 4.233 125.227 4.390
202212 6.060 125.222 6.284
202303 1.664 127.348 1.697
202306 6.469 128.729 6.526
202309 7.391 129.860 7.391

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


TransDigm Group  (NYSE:TDG) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


TransDigm Group Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of TransDigm Group's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


TransDigm Group (TransDigm Group) Business Description

Traded in Other Exchanges
Address
1301 East 9th Street, Suite 3000, Cleveland, OH, USA, 44114
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.
Executives
Joel Reiss officer: Executive Vice President 1301 E. 9TH STREET, SUITE 3000, CLEVELAND OH 44114
W Nicholas Howley officer: Chief Executive Officer C/O TRANSDIGM INC., 1301 EAST NINTH STREET, SUITE 3710, CLEVELAND OH 44114
Michael Lisman officer: Chief Financial Officer 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Robert J Small director
Sean P Hennessy director C/O THE SHERWIN WILLIAMS CO, 101 PROSPECT AVE NW, CLEVELAND OH 44115
Jorge Valladares officer: Pres., Adel Wiggins Group ADELWIGGINS GROUP, 5000 TRIGGS STREET, LOS ANGELES CA 90022
Sarah Wynne officer: Corporate Accounting Officer 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Kevin M Stein officer: COO - Power TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Jessica L Warren officer: GC, CCO, Secretary 1301 EAST NINTH STREET, SUITE 3000, CLEVELAND OH 44114
Mervin Dunn director COMMERCIAL VEHICLE GROUP, INC., 6530 WEST CAMPUS WAY, NEW ALBANY OH 43054
John Staer director C.F.MOLLERS ALLE 16, 8TV, 2300 COPENHAGEN S G7 DK
Jane M. Cronin director 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Raymond F Laubenthal officer: President and COO TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3710, CLEVELAND OH 44114
Robert S Henderson officer: Exec.V.P. & Pres., AdelWiggins ADELWIGGINS GROUP, 5000 TRIGGS STREET, LOS ANGELES CA 90022
Halle Fine Terrion officer: GC, CCO, Secretary 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114

TransDigm Group (TransDigm Group) Headlines