Allison Transmission HoldingsALSN -0.93%96 EV-to-FCF is 22.34 as of Jul. 06, 2026, which is 64% above its 10-year median of 13.66. 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. Among 845 Vehicles & Parts companies, Allison Transmission Holdings ranks worse than 57.63% on this metric.
The historical rank and industry rank for Allison Transmission Holdings's EV-to-FCF or its related term are showing as below:
ALSN'
s EV-to-FCF Range Over the Past 10 Years
Min: 8.62 Med: 13.66 Max: 25.19
Current: 22.34
During the past 13 years, the highest EV-to-FCF of Allison Transmission Holdings was 25.19. The lowest was 8.62. And the median was 13.66.
ALSN's EV-to-FCF is ranked worse than 57.63% of 845
companies
in the Vehicles & Parts industry
Industry Median: 17.3
vs ALSN: 22.34
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Allison Transmission Holdings's PE Ratio (TTM) for today is calculated as:
Allison Transmission Holdings's share price for today is $116.37.
Allison Transmission Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.430.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Allison Transmission Holdings EV-to-FCF Related Terms
Allison Transmission Holdings EV-to-FCF 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 EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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 EV-to-FCF vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's EV-to-FCF falls into.
Allison Transmission Holdings's current Enterprise Value is $13,607 Mil.
Allison Transmission Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $609 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.
Allison Transmission Holdings (ALSN) has a EV-to-FCF of 22.34 as of Jul. 06, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Allison Transmission Holdings and its competitors. This is 64% above median its historical median of 13.66. Over the past decade, Allison Transmission Holdings' EV-to-FCF has ranged from 8.62 to 25.19. According to the industry distribution chart, Allison Transmission Holdings ranks #487 out of 845 companies in the Vehicles & Parts industry, placing it in the top 57.6%.
Is Allison Transmission Holdings' EV-to-FCF too high?
Allison Transmission Holdings' current EV-to-FCF of 22.34 is 64% above median its 10-year median of 13.66. Over the past 10 years, this metric has ranged from a low of 8.62 to a high of 25.19. The Vehicles & Parts industry median EV-to-FCF is 17.30. Allison Transmission Holdings' value of 22.34 is 29.1% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #487 out of 845 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' EV-to-FCF compare to ALV and AUR?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #487 out of 845 companies for EV-to-FCF. This places Allison Transmission Holdings in the lower half of its industry. The industry median EV-to-FCF is 17.30. Allison Transmission Holdings' value of 22.34 is 29.1% above this benchmark. Historically, Allison Transmission Holdings' own EV-to-FCF has ranged from 8.62 to 25.19 over the past decade. While the company's 10-year median is 13.66 vs. the industry median of 17.30, 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 EV-to-FCF for a Vehicles & Parts company?
The median EV-to-FCF among Vehicles & Parts companies is 17.30, based on 845 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current EV-to-FCF of 22.34 is 29.1% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median EV-to-FCF is 17.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current EV-to-FCF is 22.34, which is 64% above median its own 10-year median of 13.66. 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 $116.37 — trading 8.2% below its estimated fair value. The current EV-to-FCF is 22.34, which is 64% above median its 10-year median of 13.66 and 29.1% above the Vehicles & Parts industry median of 17.30. 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 EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current EV-to-FCF is 22.34 as of Jul. 06, 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 $116.37 is trading 8.2% below its estimated GF Value™ of $126.79.
GuruFocus considers Allison Transmission Holdings to be Fairly Valued.
Key valuation signals for ALSN:
EV-to-FCF: 22.34 (64% above median its 10-year median of 13.66)
GF Value™: $126.79 vs. price of $116.37 (8.2% below fair value)
Industry Position: 29.1% above the Vehicles & Parts median (#487 of 845)
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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