What is Allison Transmission Holdings FCF Yield %?
Allison Transmission HoldingsALSN +2.29%95 FCF Yield % is 6.14 as of Jun. 24, 2026, which is 42% below its 10-year median of 10.66. GuruFocus rates ALSN with a GF Score™ of 95/100 and a GF Value™ of $124.08 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Allison Transmission Holdings ranks better than 67.47% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Allison Transmission Holdings FCF Yield % Related Terms
Allison Transmission Holdings FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's FCF Yield % 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 FCF Yield % of 6.14 as of Jun. 24, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Allison Transmission Holdings and its competitors. This is 42% below median its historical median of 10.66. Over the past decade, Allison Transmission Holdings' FCF Yield % has ranged from 5.35 to 19.36. According to the industry distribution chart, Allison Transmission Holdings ranks #433 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 32.5%.
Is Allison Transmission Holdings' FCF Yield % too high?
Allison Transmission Holdings' current FCF Yield % of 6.14 is 42% below median its 10-year median of 10.66. Over the past 10 years, this metric has ranged from a low of 5.35 to a high of 19.36. The Vehicles & Parts industry median FCF Yield % is 2.09. Allison Transmission Holdings' value of 6.14 is 193.8% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #433 out of 1331 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' FCF Yield % compare to ALV and MBLY?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #433 out of 1331 companies for FCF Yield %. This puts Allison Transmission Holdings in the upper half of its industry. The industry median FCF Yield % is 2.09. Allison Transmission Holdings' value of 6.14 is 193.8% above this benchmark. Historically, Allison Transmission Holdings' own FCF Yield % has ranged from 5.35 to 19.36 over the past decade. While the company's 10-year median is 10.66 vs. the industry median of 2.09, 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 FCF Yield % for a Vehicles & Parts company?
The median FCF Yield % among Vehicles & Parts companies is 2.09, based on 1,331 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current FCF Yield % of 6.14 is 193.8% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median FCF Yield % is 2.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current FCF Yield % is 6.14, which is 42% below median its own 10-year median of 10.66. 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 $124.08, compared to a current price of $119.68 — trading 3.5% below its estimated fair value. The current FCF Yield % is 6.14, which is 42% below median its 10-year median of 10.66 and 193.8% above the Vehicles & Parts industry median of 2.09. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current FCF Yield % is 6.14 as of Jun. 24, 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 $119.68 is trading 3.5% below its estimated GF Value™ of $124.08.
GuruFocus considers Allison Transmission Holdings to be Fairly Valued.
Key valuation signals for ALSN:
FCF Yield %: 6.14 (42% below median its 10-year median of 10.66)
GF Value™: $124.08 vs. price of $119.68 (3.5% below fair value)
Industry Position: 193.8% above the Vehicles & Parts median (#433 of 1331)
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.
95GF Score
Get the complete analysis for ALSN
FCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ALSN has been successfully added to your 
