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TransDigm GroupTDG -0.82%89 Peter Lynch Fair Value is $880.48 as of Aug. 04, 2026, which is 40663% above its 10-year median of 2.16. GuruFocus rates TDG with a GF Score™ of 89/100 and a GF Value™ of $1,613.24 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 111 Aerospace & Defense companies, TransDigm Group ranks better than 72.97% on this metric.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, TransDigm Group's PEG is 1. TransDigm Group's 5-Year TTM EBITDA Growth Rate is 23.19.
TransDigm Group's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2026 was $37.97. Therefore, the Peter Lynch Fair Value for today is $880.48.
As of today (2026-08-04), TransDigm Group's share price is $1275.05. TransDigm Group's Peter Lynch fair value is $880.48. Therefore, TransDigm Group's Price to Peter Lynch Fair Value Ratio for today is 1.45.
The historical rank and industry rank for TransDigm Group's Peter Lynch Fair Value or its related term are showing as below:
TDG'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.02 Med: 2.16 Max: 8.31
Current: 1.45
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of TransDigm Group was 8.31. The lowest was 1.02. And the median was 2.16.
TDG's Price-to-Peter-Lynch-Fair-Value is ranked better than 72.97% of 111
companies
in the Aerospace & Defense industry
Industry Median: 2.13
vs TDG: 1.45
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
TransDigm Group (NYSE:TDG) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 23.19 instead of 15 in this case.
TransDigm Group's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
1275.05
/
880.48
=
1.45
* 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 Peter Lynch Fair Value Related Terms
TransDigm Group Peter Lynch Fair Value Historical Data
* Premium members only.
The historical data trend for TransDigm Group's Peter Lynch Fair Value 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.
TDG vs HONA, NOC, LHX: Peter Lynch Fair Value Comparison
For the Aerospace & Defense subindustry, TransDigm Group's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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 Price-to-Peter-Lynch-Fair-Value vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where TransDigm Group's Price-to-Peter-Lynch-Fair-Value falls into.
TransDigm Group's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $37.97.
* 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.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of $880.48 mean?
TransDigm Group (TDG) has a Peter Lynch Fair Value of $880.48 as of Aug. 04, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on TransDigm Group and its competitors. This is 40663% above median its historical median of 2.16. Over the past decade, TransDigm Group's Peter Lynch Fair Value has ranged from 1.02 to 8.31. According to the industry distribution chart, TransDigm Group ranks #30 out of 111 companies in the Aerospace & Defense industry, placing it in the top 27%.
Is TransDigm Group's Peter Lynch Fair Value too high?
TransDigm Group's current Peter Lynch Fair Value of $880.48 is 40663% above median its 10-year median of 2.16. Over the past 10 years, this metric has ranged from a low of 1.02 to a high of 8.31. The Aerospace & Defense industry median Peter Lynch Fair Value is 2.13. TransDigm Group's value of $880.48 is 41237.1% above this industry median. Based on the distribution chart, TransDigm Group ranks #30 out of 111 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 Peter Lynch Fair Value compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #30 out of 111 companies for Peter Lynch Fair Value. This puts TransDigm Group in the upper half of its industry. The industry median Peter Lynch Fair Value is 2.13. TransDigm Group's value of $880.48 is 41237.1% above this benchmark. Historically, TransDigm Group's own Peter Lynch Fair Value has ranged from 1.02 to 8.31 over the past decade. While the company's 10-year median is 2.16 vs. the industry median of 2.13, 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 Peter Lynch Fair Value for an Aerospace & Defense company?
The median Peter Lynch Fair Value among Aerospace & Defense companies is 2.13, based on 111 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current Peter Lynch Fair Value of $880.48 is 41237.1% 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 Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median Peter Lynch Fair Value is 2.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current Peter Lynch Fair Value is $880.48, which is 40663% above median its own 10-year median of 2.16. 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 $1,613.24, compared to a current price of $1,275.05 — trading 21% below its estimated fair value. The current Peter Lynch Fair Value is $880.48, which is 40663% above median its 10-year median of 2.16 and 41237.1% above the Aerospace & Defense industry median of 2.13. 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 Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For TransDigm Group (TDG), the current Peter Lynch Fair Value is $880.48 as of Aug. 04, 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 $1,275.05 is trading 21% below its estimated GF Value™ of $1,613.24.
GuruFocus considers TransDigm Group to be Modestly Undervalued.
Key valuation signals for TDG:
Peter Lynch Fair Value: $880.48 (40663% above median its 10-year median of 2.16)
GF Value™: $1,613.24 vs. price of $1,275.05 (21% below fair value)
Industry Position: 41237.1% above the Aerospace & Defense median (#30 of 111)
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
Peter Lynch Fair Value is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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