ALSN (Allison Transmission Holdings) Margin of Safety % (DCF FCF Based): -7.23% (As of Jun. 24, 2026)


ALSN Allison Transmission Holdings Inc ALSN
95 GF Score
Price $119.68
GF Value $124.08
Valuation Fairly Valued
! 3 Warning Signs
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What is Allison Transmission Holdings Margin of Safety % (DCF FCF Based)?

Allison Transmission Holdings ALSN +2.29% 95 Margin of Safety % (DCF FCF Based) is -7.23% as of Jun. 24, 2026. 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.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-24), Allison Transmission Holdings's Predictability Rank is 5-Stars. Allison Transmission Holdings's intrinsic value calculated from the Discounted FCF model is $215.28 and current share price is $119.68. Consequently,

Allison Transmission Holdings's Margin of Safety % (DCF FCF Based) using Discounted FCF model is -7.23%.

ALSN vs ALV, MBLY, LEA: Margin of Safety % (DCF FCF Based) Comparison

For the Auto Parts subindustry, Allison Transmission Holdings's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where Allison Transmission Holdings's Margin of Safety % (DCF FCF Based) falls into.


ALSN
95GF Score
Allison Transmission Holdings Inc ALSN
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Allison Transmission Holdings Margin of Safety % (DCF FCF Based) Calculation

Allison Transmission Holdings's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(111.61-119.68)/111.61
=-7.23 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of -7.23% mean?
Allison Transmission Holdings (ALSN) has a Margin of Safety % (DCF FCF Based) of -7.23% as of Jun. 24, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Allison Transmission Holdings.
Is Allison Transmission Holdings' Margin of Safety % (DCF FCF Based) too high?
Allison Transmission Holdings' current Margin of Safety % (DCF FCF Based) is -7.23%. 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' Margin of Safety % (DCF FCF Based) compare to ALV and MBLY?
Allison Transmission Holdings' Margin of Safety % (DCF FCF Based) of -7.23% 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 Margin of Safety % (DCF FCF Based) for a Vehicles & Parts company?
A good Margin of Safety % (DCF FCF Based) depends on the Vehicles & Parts industry context. However, Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Allison Transmission Holdings. Allison Transmission Holdings's current Margin of Safety % (DCF FCF Based) is -7.23%. 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 Margin of Safety % (DCF FCF Based) is -7.23%. 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 Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current Margin of Safety % (DCF FCF Based) is -7.23% 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:

  • Margin of Safety % (DCF FCF Based): -7.23%
  • GF Value™: $124.08 vs. price of $119.68 (3.5% below fair value)
  • GF Score™: 95/100 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.
95GF Score

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Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$119.68
Price
$124.08
GF Value