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Allison Transmission HoldingsALSN +5.43%95 3-Year EBITDA Growth Rate is 7.90% as of Mar. 2026, which is 80% above its 10-year median of 4.40. GuruFocus rates ALSN with a GF Score™ of 95/100 and a GF Value™ of $133.63 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,165 Vehicles & Parts companies, Allison Transmission Holdings ranks better than 52.88% on this metric.
During the past 12 months, Allison Transmission Holdings's average EBITDA Per Share Growth Rate was -7.50% per year.
During the past 3 years, the average EBITDA Per Share Growth Rate was 7.90% per year.
During the past 5 years, the average EBITDA Per Share Growth Rate was 15.90% per year.
During the past 10 years, the average EBITDA Per Share Growth Rate was 13.60% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
During the past 13 years, the highest 3-Year average EBITDA Per Share Growth Rate of Allison Transmission Holdings was 34.80% per year. The lowest was -1.90% per year. And the median was 4.40% per year.
EBITDA per Share is the amount of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per outstanding share of the company's stock.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization.
Allison Transmission Holdings 3-Year EBITDA Growth Rate Related Terms
ALSN vs ALV, AUR, APTV: 3-Year EBITDA Growth Rate Comparison
For the Auto Parts subindustry, Allison Transmission Holdings's 3-Year EBITDA Growth Rate, along with its competitors' market caps and 3-Year EBITDA Growth Rate 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 3-Year EBITDA Growth Rate vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's 3-Year EBITDA Growth Rate distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's 3-Year EBITDA Growth Rate falls into.
This is the 3-year average growth rate of EBITDA per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
What does a 3-Year EBITDA Growth Rate of 7.90% mean?
Allison Transmission Holdings (ALSN) has a 3-Year EBITDA Growth Rate of 7.90% as of Mar. 2026. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Allison Transmission Holdings and its competitors. This is 80% above median its historical median of 4.40. According to the industry distribution chart, Allison Transmission Holdings ranks #549 out of 1165 companies in the Vehicles & Parts industry, placing it in the top 47.1%.
Is Allison Transmission Holdings' 3-Year EBITDA Growth Rate too high?
Allison Transmission Holdings' current 3-Year EBITDA Growth Rate of 7.90% is 80% above median its 10-year median of 4.40. The Vehicles & Parts industry median 3-Year EBITDA Growth Rate is 6.90. Allison Transmission Holdings' value of 7.90% is 14.5% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #549 out of 1165 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Allison Transmission Holdings has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' 3-Year EBITDA Growth Rate compare to ALV and AUR?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #549 out of 1165 companies for 3-Year EBITDA Growth Rate. This puts Allison Transmission Holdings in the upper half of its industry. The industry median 3-Year EBITDA Growth Rate is 6.90. Allison Transmission Holdings' value of 7.90% is 14.5% above this benchmark. While the company's 10-year median is 4.40 vs. the industry median of 6.90, 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 3-Year EBITDA Growth Rate for a Vehicles & Parts company?
The median 3-Year EBITDA Growth Rate among Vehicles & Parts companies is 6.90, based on 1,165 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year EBITDA Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year EBITDA Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current 3-Year EBITDA Growth Rate of 7.90% is 14.5% 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 3-Year EBITDA Growth Rate mean?
A high 3-Year EBITDA Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median 3-Year EBITDA Growth Rate is 6.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current 3-Year EBITDA Growth Rate is 7.90%, which is 80% above median its own 10-year median of 4.40. 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 $133.63, compared to a current price of $122.62 — trading 8.2% below its estimated fair value. The current 3-Year EBITDA Growth Rate is 7.90%, which is 80% above median its 10-year median of 4.40 and 14.5% above the Vehicles & Parts industry median of 6.90. Allison Transmission Holdings' overall GF Score™ is 95/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year EBITDA Growth Rate calculated?
3-Year EBITDA Growth Rate is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current 3-Year EBITDA Growth Rate is 7.90% 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 $122.62 is trading 8.2% below its estimated GF Value™ of $133.63.
GuruFocus considers Allison Transmission Holdings to be Fairly Valued.
Key valuation signals for ALSN:
3-Year EBITDA Growth Rate: 7.90% (80% above median its 10-year median of 4.40)
GF Value™: $133.63 vs. price of $122.62 (8.2% below fair value)
Industry Position: 14.5% above the Vehicles & Parts median (#549 of 1165)
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 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.
95GF Score
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