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TransDigm GroupTDG +0.36%89 OCF Yield % is 3.00 as of Aug. 01, 2026, which is 1% above its 10-year median of 2.98. GuruFocus rates TDG with a GF Score™ of 89/100 and a GF Value™ of $1,610.96 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 359 Aerospace & Defense companies, TransDigm Group ranks better than 60.72% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF 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 operating 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.
TransDigm Group OCF Yield % Related Terms
TransDigm Group OCF Yield % Historical Data
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The historical data trend for TransDigm Group's OCF Yield % 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 OCF Yield %, along with its competitors' market caps and OCF 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.
TransDigm Group OCF Yield % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's OCF Yield % distribution charts can be found below:
* The bar in red indicates where TransDigm Group's OCF 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.
TransDigm Group (TDG) has a OCF Yield % of 3.00 as of Aug. 01, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on TransDigm Group and its competitors. This is near median its historical median of 2.98. Over the past decade, TransDigm Group's OCF Yield % has ranged from 2.19 to 7.45. According to the industry distribution chart, TransDigm Group ranks #141 out of 359 companies in the Aerospace & Defense industry, placing it in the top 39.3%.
Is TransDigm Group's OCF Yield % too high?
TransDigm Group's current OCF Yield % of 3.00 is near median its 10-year median of 2.98. Over the past 10 years, this metric has ranged from a low of 2.19 to a high of 7.45. The Aerospace & Defense industry median OCF Yield % is 1.81. TransDigm Group's value of 3.00 is 65.7% above this industry median. Based on the distribution chart, TransDigm Group ranks #141 out of 359 companies in the Aerospace & Defense industry, which is above 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 OCF Yield % compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #141 out of 359 companies for OCF Yield %. This puts TransDigm Group in the upper half of its industry. The industry median OCF Yield % is 1.81. TransDigm Group's value of 3.00 is 65.7% above this benchmark. Historically, TransDigm Group's own OCF Yield % has ranged from 2.19 to 7.45 over the past decade. While the company's 10-year median is 2.98 vs. the industry median of 1.81, TransDigm Group 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 OCF Yield % for an Aerospace & Defense company?
The median OCF Yield % among Aerospace & Defense companies is 1.81, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current OCF Yield % of 3.00 is 65.7% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median OCF Yield % is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current OCF Yield % is 3.00, which is near median its own 10-year median of 2.98. 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 OCF Yield % is 3.00, which is near median its 10-year median of 2.98 and 65.7% above the Aerospace & Defense industry median of 1.81. 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 OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For TransDigm Group (TDG), the current OCF Yield % is 3.00 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:
OCF Yield %: 3.00 (near median its 10-year median of 2.98)
GF Value™: $1,610.96 vs. price of $1,254.38 (22.1% below fair value)
Industry Position: 65.7% above the Aerospace & Defense median (#141 of 359)
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
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