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The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for TransDigm Group's Beneish M-Score or its related term are showing as below:
TDG'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.4 Max: -1.82
Current: -2.37
During the past 13 years, the highest Beneish M-Score of TransDigm Group was -1.82. The lowest was -3.02. And the median was -2.40.
The historical data trend for TransDigm Group's Beneish M-Score 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 Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where TransDigm Group's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of TransDigm Group for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.0528
+
0.528 * 0.9975
+
0.404 * 0.9353
+
0.892 * 1.1329
+
0.115 * 0.9823
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9586
+
4.679 * -0.000865
-
0.327 * 1.0963
=
-2.37
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(348 / (348 + 1519))
/
(393 / (393 + 1678))
=
0.186395
/
0.189763
=
0.9823
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(2082 - -1
-
2105)
/
25442
=
-0.000865
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
TransDigm Group has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.
TransDigm Group (TDG) has a Beneish M-Score of -2.37 as of Aug. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on TransDigm Group and its competitors. According to the industry distribution chart, TransDigm Group ranks #180 out of 325 companies in the Aerospace & Defense industry, placing it in the top 55.4%.
Is TransDigm Group's Beneish M-Score too high?
TransDigm Group's current Beneish M-Score is -2.37. Based on the distribution chart, TransDigm Group ranks #180 out of 325 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, TransDigm Group has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's Beneish M-Score compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #180 out of 325 companies for Beneish M-Score. This places TransDigm Group in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Aerospace & Defense company?
A good Beneish M-Score depends on the Aerospace & Defense industry context. However, Beneish M-Score 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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on TransDigm Group and its competitors. TransDigm Group's current Beneish M-Score is -2.37. 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 $1,610.96, compared to a current price of $1,254.38 — trading 22.1% below its estimated fair value. The current Beneish M-Score is -2.37. TransDigm Group's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For TransDigm Group (TDG), the current Beneish M-Score is -2.37 as of Aug. 01, 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 $1,254.38 is trading 22.1% below its estimated GF Value™ of $1,610.96.
GuruFocus considers TransDigm Group to be Modestly Undervalued.
Key valuation signals for TDG:
Beneish M-Score: -2.37
GF Value™: $1,610.96 vs. price of $1,254.38 (22.1% below fair value)
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.
89GF Score
Get the complete analysis for TDG
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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