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TransDigm GroupTDG +0.36%89 Pretax Margin % is 27.52% as of Mar. 2026, which is 14% above its 10-year median of 24.06. 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 351 Aerospace & Defense companies, TransDigm Group ranks better than 92.59% on this metric.
TransDigm Group (NYSE:TDG) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
TransDigm Group Pretax Margin % Related Terms
TransDigm Group Pretax Margin % Historical Data
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The historical data trend for TransDigm Group's Pretax Margin % 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 Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where TransDigm Group's Pretax Margin % 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 Pretax Margin % of 27.52% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on TransDigm Group and its competitors. This is 14% above median its historical median of 24.06. Over the past decade, TransDigm Group's Pretax Margin % has ranged from 14.50 to 29.77. According to the industry distribution chart, TransDigm Group ranks #26 out of 351 companies in the Aerospace & Defense industry, placing it in the top 7.4%.
Is TransDigm Group's Pretax Margin % too high?
TransDigm Group's current Pretax Margin % of 27.52% is 14% above median its 10-year median of 24.06. Over the past 10 years, this metric has ranged from a low of 14.50 to a high of 29.77. The Aerospace & Defense industry median Pretax Margin % is 6.17. TransDigm Group's value of 27.52% is 346% above this industry median. Based on the distribution chart, TransDigm Group ranks #26 out of 351 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. 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 Pretax Margin % compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #26 out of 351 companies for Pretax Margin %. This places TransDigm Group in the top 7% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 6.17. TransDigm Group's value of 27.52% is 346% above this benchmark. Historically, TransDigm Group's own Pretax Margin % has ranged from 14.50 to 29.77 over the past decade. While the company's 10-year median is 24.06 vs. the industry median of 6.17, 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 Pretax Margin % for an Aerospace & Defense company?
The median Pretax Margin % among Aerospace & Defense companies is 6.17, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current Pretax Margin % of 27.52% is 346% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median Pretax Margin % is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current Pretax Margin % is 27.52%, which is 14% above median its own 10-year median of 24.06. 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 Pretax Margin % is 27.52%, which is 14% above median its 10-year median of 24.06 and 346% above the Aerospace & Defense industry median of 6.17. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For TransDigm Group (TDG), the current Pretax Margin % is 27.52% as of Mar. 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:
Pretax Margin %: 27.52% (14% above median its 10-year median of 24.06)
GF Value™: $1,610.96 vs. price of $1,254.38 (22.1% below fair value)
Industry Position: 346% above the Aerospace & Defense median (#26 of 351)
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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