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TransDigm Group (LTS:0REK) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
TransDigm Group Forward PE Ratio Related Terms
TransDigm Group Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for TransDigm Group's Forward PE Ratio 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.
TransDigm Group Forward PE Ratio Chart
TransDigm Group Annual Data
Trend
2017-09
2018-09
2019-09
2020-09
2021-09
2024-09
2025-09
Forward PE Ratio
20.70
21.60
24.75
36.76
33.11
34.97
31.22
TransDigm Group Quarterly Data
2016-03
2016-06
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
16.89
16.13
21.88
22.32
20.41
20.70
20.75
18.02
20.45
21.60
19.46
26.81
23.53
24.75
28.41
17.79
40.98
36.76
52.63
49.02
40.00
33.11
37.04
32.36
34.97
34.43
36.83
34.38
31.22
34.02
29.37
28.24
LTS:0REK vs HONA, NOC, LHX: Forward PE Ratio Comparison
For the Aerospace & Defense subindustry, TransDigm Group's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where TransDigm Group's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
TransDigm Group (LTS:0REK) has a Forward PE Ratio of 25.88 as of Aug. 15, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on TransDigm Group and its competitors. According to the industry distribution chart, TransDigm Group ranks #83 out of 206 companies in the Aerospace & Defense industry, placing it in the top 40.3%.
Is TransDigm Group's Forward PE Ratio too high?
TransDigm Group's current Forward PE Ratio is 25.88. The Aerospace & Defense industry median Forward PE Ratio is 31.16. TransDigm Group's value of 25.88 is 16.9% below this industry median. Based on the distribution chart, TransDigm Group ranks #83 out of 206 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, TransDigm Group has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's Forward PE Ratio compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #83 out of 206 companies for Forward PE Ratio. This puts TransDigm Group in the upper half of its industry. The industry median Forward PE Ratio is 31.16. TransDigm Group's value of 25.88 is 16.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Aerospace & Defense company?
The median Forward PE Ratio among Aerospace & Defense companies is 31.16, based on 206 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current Forward PE Ratio of 25.88 is 16.9% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median Forward PE Ratio is 31.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current Forward PE Ratio is 25.88. 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 (LTS:0REK) is currently considered Modestly Undervalued. The stock's GF Value™ is $1,632.01, compared to a current price of $1,241.90 — trading 23.9% below its estimated fair value. The current Forward PE Ratio is 25.88 and 16.9% below the Aerospace & Defense industry median of 31.16. TransDigm Group's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For TransDigm Group (LTS:0REK), the current Forward PE Ratio is 25.88 as of Aug. 15, 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 (LTS:0REK) Overvalued in 2026?
Based on GuruFocus' analysis, TransDigm Group stock appears to be undervalued.
The current stock price of $1,241.90 is trading 23.9% below its estimated GF Value™ of $1,632.01.
GuruFocus considers TransDigm Group to be Modestly Undervalued.
Key valuation signals for LTS:0REK:
Forward PE Ratio: 25.88
GF Value™: $1,632.01 vs. price of $1,241.90 (23.9% below fair value)
Industry Position: 16.9% below the Aerospace & Defense median (#83 of 206)
No single metric tells the full story. See the LTS:0REK 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.
82GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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