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Allison Transmission HoldingsALSN +2.45%96 Debt-to-Equity is 2.24 as of Mar. 2026, which is 32% below its 10-year median of 3.29. GuruFocus rates ALSN with a GF Score™ of 96/100 and a GF Value™ of $130.66 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,216 Vehicles & Parts companies, Allison Transmission Holdings ranks worse than 92.85% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Allison Transmission Holdings's Debt-to-Equity or its related term are showing as below:
ALSN'
s Debt-to-Equity Range Over the Past 10 Years
Min: 1.3 Med: 3.29 Max: 4.59
Current: 2.24
During the past 13 years, the highest Debt-to-Equity Ratio of Allison Transmission Holdings was 4.59. The lowest was 1.30. And the median was 3.29.
ALSN's Debt-to-Equity is ranked worse than 92.85% of 1216
companies
in the Vehicles & Parts industry
Industry Median: 0.46
vs ALSN: 2.24
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Allison Transmission Holdings Debt-to-Equity Related Terms
Allison Transmission Holdings Debt-to-Equity 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-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's Debt-to-Equity 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.
Allison Transmission Holdings (ALSN) has a Debt-to-Equity of 2.24 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Allison Transmission Holdings and its competitors. This is 32% below median its historical median of 3.29. Over the past decade, Allison Transmission Holdings' Debt-to-Equity has ranged from 1.30 to 4.59. According to the industry distribution chart, Allison Transmission Holdings ranks #1129 out of 1216 companies in the Vehicles & Parts industry, placing it in the top 92.8%.
Is Allison Transmission Holdings' Debt-to-Equity too high?
Allison Transmission Holdings' current Debt-to-Equity of 2.24 is 32% below median its 10-year median of 3.29. Over the past 10 years, this metric has ranged from a low of 1.30 to a high of 4.59. The Vehicles & Parts industry median Debt-to-Equity is 0.46. Allison Transmission Holdings' value of 2.24 is 387% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #1129 out of 1216 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Allison Transmission Holdings has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' Debt-to-Equity compare to ALV and AUR?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #1129 out of 1216 companies for Debt-to-Equity. This places Allison Transmission Holdings in the lower half of its industry. The industry median Debt-to-Equity is 0.46. Allison Transmission Holdings' value of 2.24 is 387% above this benchmark. Historically, Allison Transmission Holdings' own Debt-to-Equity has ranged from 1.30 to 4.59 over the past decade. While the company's 10-year median is 3.29 vs. the industry median of 0.46, 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-Equity for a Vehicles & Parts company?
The median Debt-to-Equity among Vehicles & Parts companies is 0.46, based on 1,216 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current Debt-to-Equity of 2.24 is 387% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median Debt-to-Equity is 0.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current Debt-to-Equity is 2.24, which is 32% below median its own 10-year median of 3.29. 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 Fairly Valued. The stock's GF Value™ is $130.66, compared to a current price of $119.06 — trading 8.9% below its estimated fair value. The current Debt-to-Equity is 2.24, which is 32% below median its 10-year median of 3.29 and 387% above the Vehicles & Parts industry median of 0.46. 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current Debt-to-Equity is 2.24 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 $119.06 is trading 8.9% below its estimated GF Value™ of $130.66.
GuruFocus considers Allison Transmission Holdings to be Fairly Valued.
Key valuation signals for ALSN:
Debt-to-Equity: 2.24 (32% below median its 10-year median of 3.29)
GF Value™: $130.66 vs. price of $119.06 (8.9% below fair value)
Industry Position: 387% above the Vehicles & Parts median (#1129 of 1216)
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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