ALSN (Allison Transmission Holdings) Effective Interest Rate on Debt %: 6.82% (As of Mar. 2026)


ALSN Allison Transmission Holdings Inc ALSN
96 GF Score
Price $116.60
GF Value $126.79
Valuation Fairly Valued
! 3 Warning Signs
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What is Allison Transmission Holdings Effective Interest Rate on Debt %?

Allison Transmission Holdings ALSN +0.20% 96 Effective Interest Rate on Debt % is 6.82% as of Mar. 2026. GuruFocus rates ALSN with a GF Score™ of 96/100 and a GF Value™ of $126.79 (Fairly Valued). The stock has 3 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Allison Transmission Holdings's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $244 Mil. Allison Transmission Holdings's average total debt for the quarter that ended in Mar. 2026 was $3,579 Mil. Therefore, Allison Transmission Holdings's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 6.82%.


Allison Transmission Holdings  (NYSE:ALSN) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Allison Transmission Holdings Effective Interest Rate on Debt % Related Terms


Allison Transmission Holdings Effective Interest Rate on Debt % Historical Data

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The historical data trend for Allison Transmission Holdings's Effective Interest Rate on Debt % 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.

Allison Transmission Holdings Effective Interest Rate on Debt % Chart

Allison Transmission Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.61 4.70 4.26 3.63 3.48

Allison Transmission Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % 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 3.50 3.67 4.00 3.78 6.82

ALSN vs ALV, AUR, APTV: Effective Interest Rate on Debt % Comparison

For the Auto Parts subindustry, Allison Transmission Holdings's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Allison Transmission Holdings's Effective Interest Rate on Debt % falls into.


ALSN
96GF Score
Allison Transmission Holdings Inc ALSN
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Allison Transmission Holdings Effective Interest Rate on Debt % Calculation

Allison Transmission Holdings's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -92/( (2400+2890)/ 2 )
=-1  *  -92/2645
=3.48 %

where

Allison Transmission Holdings's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -244/( (2890+4267)/ 2 )
=-1  *  -244/3578.5
=6.82 %

where

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 6.82% mean?
Allison Transmission Holdings (ALSN) has a Effective Interest Rate on Debt % of 6.82% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Allison Transmission Holdings and its competitors.
Is Allison Transmission Holdings' Effective Interest Rate on Debt % too high?
Allison Transmission Holdings' current Effective Interest Rate on Debt % is 6.82%. 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' Effective Interest Rate on Debt % compare to ALV and AUR?
Allison Transmission Holdings' Effective Interest Rate on Debt % of 6.82% can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Vehicles & Parts company?
A good Effective Interest Rate on Debt % depends on the Vehicles & Parts industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Allison Transmission Holdings and its competitors. Allison Transmission Holdings's current Effective Interest Rate on Debt % is 6.82%. 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 $126.79, compared to a current price of $116.60 — trading 8% below its estimated fair value. The current Effective Interest Rate on Debt % is 6.82%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current Effective Interest Rate on Debt % is 6.82% 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 $116.60 is trading 8% below its estimated GF Value™ of $126.79. GuruFocus considers Allison Transmission Holdings to be Fairly Valued.

Key valuation signals for ALSN:

  • Effective Interest Rate on Debt %: 6.82%
  • GF Value™: $126.79 vs. price of $116.60 (8% below fair value)
  • GF Score™: 96/100 with 3 warning signs

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

Other Exchanges 1A7:Germany
Address One Allison Way, Indianapolis, IN, USA, 46222
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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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$116.60
Price
$126.79
GF Value