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Allison Transmission HoldingsALSN +0.54%96 Debt-to-EBITDA is 3.91 as of Mar. 2026, which is 41% above its 10-year median of 2.78. GuruFocus rates ALSN with a GF Score™ of 96/100 and a GF Value™ of $129.18 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,096 Vehicles & Parts companies, Allison Transmission Holdings ranks worse than 73.18% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Allison Transmission Holdings's Debt-to-EBITDA or its related term are showing as below:
ALSN'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.17 Med: 2.78 Max: 4.23
Current: 4.23
During the past 13 years, the highest Debt-to-EBITDA Ratio of Allison Transmission Holdings was 4.23. The lowest was 2.17. And the median was 2.78.
ALSN's Debt-to-EBITDA is ranked worse than 73.18% of 1096
companies
in the Vehicles & Parts industry
Industry Median: 2.25
vs ALSN: 4.23
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Allison Transmission Holdings Debt-to-EBITDA Related Terms
Allison Transmission Holdings Debt-to-EBITDA Historical Data
* 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 Auto Parts subindustry, Allison Transmission Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.
Allison Transmission Holdings Debt-to-EBITDA vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Allison Transmission Holdings (ALSN) has a Debt-to-EBITDA of 3.91 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Allison Transmission Holdings. This is 41% above median its historical median of 2.78. Over the past decade, Allison Transmission Holdings' Debt-to-EBITDA has ranged from 2.17 to 4.23. According to the industry distribution chart, Allison Transmission Holdings ranks #802 out of 1096 companies in the Vehicles & Parts industry, placing it in the top 73.2%.
Is Allison Transmission Holdings' Debt-to-EBITDA too high?
Allison Transmission Holdings' current Debt-to-EBITDA of 3.91 is 41% above median its 10-year median of 2.78. Over the past 10 years, this metric has ranged from a low of 2.17 to a high of 4.23. The Vehicles & Parts industry median Debt-to-EBITDA is 2.25. Allison Transmission Holdings' value of 3.91 is 73.8% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #802 out of 1096 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Allison Transmission Holdings has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' Debt-to-EBITDA compare to ALV and AUR?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #802 out of 1096 companies for Debt-to-EBITDA. This places Allison Transmission Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 2.25. Allison Transmission Holdings' value of 3.91 is 73.8% above this benchmark. Historically, Allison Transmission Holdings' own Debt-to-EBITDA has ranged from 2.17 to 4.23 over the past decade. While the company's 10-year median is 2.78 vs. the industry median of 2.25, Allison Transmission Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.25, based on 1,096 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current Debt-to-EBITDA of 3.91 is 73.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Allison Transmission Holdings. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current Debt-to-EBITDA is 3.91, which is 41% above median its own 10-year median of 2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allison Transmission Holdings stock overvalued right now?
Based on GuruFocus' analysis, Allison Transmission Holdings (ALSN) is currently considered Modestly Undervalued. The stock's GF Value™ is $129.18, compared to a current price of $114.91 — trading 11.1% below its estimated fair value. The current Debt-to-EBITDA is 3.91, which is 41% above median its 10-year median of 2.78 and 73.8% above the Vehicles & Parts industry median of 2.25. Allison Transmission Holdings' overall GF Score™ is 96/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current Debt-to-EBITDA is 3.91 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Allison Transmission Holdings (ALSN) Overvalued in 2026?
Based on GuruFocus' analysis, Allison Transmission Holdings stock appears to be undervalued.
The current stock price of $114.91 is trading 11.1% below its estimated GF Value™ of $129.18.
GuruFocus considers Allison Transmission Holdings to be Modestly Undervalued.
Key valuation signals for ALSN:
Debt-to-EBITDA: 3.91 (41% above median its 10-year median of 2.78)
GF Value™: $129.18 vs. price of $114.91 (11.1% below fair value)
Industry Position: 73.8% above the Vehicles & Parts median (#802 of 1096)
No single metric tells the full story. See the ALSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allison Transmission Holdings Business Description
Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business commands approximately 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motorhomes). Allison also produces commercial hybrid propulsion systems and is developing fully electric powertrains.
96GF Score
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