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TransDigm GroupTDG -0.88%90 EV-to-EBIT is 21.25 as of Aug. 20, 2026, which is 12% below its 10-year median of 24.17. GuruFocus rates TDG with a GF Score™ of 90/100 and a GF Value™ of $1,656.99 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 256 Aerospace & Defense companies, TransDigm Group ranks better than 65.23% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
TransDigm Group's Enterprise Value for the quarter that ended in Jun. 2026 was $104,424 Mil.
TransDigm Group's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,631 Mil.
* 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 EV-to-EBIT Related Terms
TransDigm Group EV-to-EBIT Historical Data
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The historical data trend for TransDigm Group's EV-to-EBIT 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.
For the Aerospace & Defense subindustry, TransDigm Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where TransDigm Group's EV-to-EBIT falls into.
TransDigm Group's current Enterprise Value is $98,400 Mil.
TransDigm Group's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,631 Mil.
* 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 (TDG) has a EV-to-EBIT of 21.25 as of Aug. 20, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on TransDigm Group and its competitors. This is 12% below median its historical median of 24.17. Over the past decade, TransDigm Group's EV-to-EBIT has ranged from 14.50 to 40.74. According to the industry distribution chart, TransDigm Group ranks #89 out of 256 companies in the Aerospace & Defense industry, placing it in the top 34.8%.
Is TransDigm Group's EV-to-EBIT too high?
TransDigm Group's current EV-to-EBIT of 21.25 is 12% below median its 10-year median of 24.17. Over the past 10 years, this metric has ranged from a low of 14.50 to a high of 40.74. The Aerospace & Defense industry median EV-to-EBIT is 29.09. TransDigm Group's value of 21.25 is 26.9% below this industry median. Based on the distribution chart, TransDigm Group ranks #89 out of 256 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, TransDigm Group has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's EV-to-EBIT compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #89 out of 256 companies for EV-to-EBIT. This puts TransDigm Group in the upper half of its industry. The industry median EV-to-EBIT is 29.09. TransDigm Group's value of 21.25 is 26.9% below this benchmark. Historically, TransDigm Group's own EV-to-EBIT has ranged from 14.50 to 40.74 over the past decade. While the company's 10-year median is 24.17 vs. the industry median of 29.09, TransDigm Group has consistently been below 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 EV-to-EBIT for an Aerospace & Defense company?
The median EV-to-EBIT among Aerospace & Defense companies is 29.09, based on 256 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current EV-to-EBIT of 21.25 is 26.9% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median EV-to-EBIT is 29.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current EV-to-EBIT is 21.25, which is 12% below median its own 10-year median of 24.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TransDigm Group stock overvalued right now?
Based on GuruFocus' analysis, TransDigm Group (TDG) is currently considered Modestly Undervalued. The stock's GF Value™ is $1,656.99, compared to a current price of $1,222.91 — trading 26.2% below its estimated fair value. The current EV-to-EBIT is 21.25, which is 12% below median its 10-year median of 24.17 and 26.9% below the Aerospace & Defense industry median of 29.09. TransDigm Group's overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For TransDigm Group (TDG), the current EV-to-EBIT is 21.25 as of Aug. 20, 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 TransDigm Group (TDG) Overvalued in 2026?
Based on GuruFocus' analysis, TransDigm Group stock appears to be undervalued.
The current stock price of $1,222.91 is trading 26.2% below its estimated GF Value™ of $1,656.99.
GuruFocus considers TransDigm Group to be Modestly Undervalued.
Key valuation signals for TDG:
EV-to-EBIT: 21.25 (12% below median its 10-year median of 24.17)
GF Value™: $1,656.99 vs. price of $1,222.91 (26.2% below fair value)
Industry Position: 26.9% below the Aerospace & Defense median (#89 of 256)
No single metric tells the full story. See the TDG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TransDigm manufactures and services a broad set of specialized parts for commercial and military aircraft. The firm organizes itself in three segments: power and control, airframes, and a small non-aviation segment, which serves mostly off-road vehicles and mining equipment. It operates as an acquisitive holding company that focuses on buying up smaller firms that make proprietary aerospace products with substantial aftermarket demand. TransDigm regularly employs financial leverage to amplify its operating results.
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