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TransDigm Group GF Value Rank

: 5 (As of Today)
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TransDigm Group has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Aerospace & Defense subindustry, TransDigm Group's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Aerospace & Defense industry and Industrials sector, TransDigm Group's GF Value Rank distribution charts can be found below:

* The bar in red indicates where TransDigm Group's GF Value Rank falls into.



TransDigm Group GF Value Rank Related Terms

Thank you for viewing the detailed overview of TransDigm Group's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


TransDigm Group Business Description

TransDigm Group logo
Address
1301 East 9th Street, Suite 3000, Cleveland, OH, USA, 44114
TransDigm manufactures and services a diverse set of components for commercial and military aircraft. The firm organizes itself in three segments: a power and control segment, an airframe segment, and a small nonaviation segment. It operates as an acquisitive holding company that targets firms with proprietary, sole-source products with substantial aftermarket content. TransDigm regularly employs financial leverage to amplify operating results.
Executives
Cronin Jane M. director 101 W. PROSPECT AVENUE CLEVELAND OH 44115
Wynne Sarah officer: Corporate Accounting Officer 1301 EAST 9TH STREET, SUITE 3000 CLEVELAND OH 44114
Terrion Halle Fine officer: GC, CCO, Secretary 1301 EAST 9TH STREET, SUITE 3000 CLEVELAND OH 44114
Santana Michele director CLARENDON HOUSE 2 CHURCH STREET HAMILTON D0 HM1
Rubiano Rodrigo officer: Executive Vice President 1301 EAST 9TH STREET, SUITE 3000 CLEVELAND OH 44114
Feil Alex officer: Executive Vice President 1301 EAST 9TH STREET, SUITE 3000 CLEVELAND OH 44114
Mccullough Gary E director 231 N. MARTINGALE ROAD SCHAUMBURG IL 60173
Lisman Michael officer: Chief Financial Officer 1301 EAST 9TH STREET SUITE 3000 CLEVELAND OH 44114
Small Robert J director
Reiss Joel officer: Executive Vice President 1301 E. 9TH STREET, SUITE 3000 CLEVELAND OH 44114
Tenerowicz John officer: Corporate Controller 1301 E. 9TH STREET SUITE 3000 CLEVELAND OH 44114
Paradie Terrance M officer: Exec. VP and CFO 5238 WATERSEDGE COURT ASHTABULA OH 44004
Frailey Kevin officer: Executive Vice President TRANSDIGM GROUP INCORPORATED 1301 EAST 9TH STREET, SUITE 3000 CLEVELAND OH 44114
Stein Kevin M officer: COO - Power TRANSDIGM GROUP INCORPORATED 1301 EAST 9TH STREET, SUITE 3000 CLEVELAND OH 44114
Ciolli Vince officer: Corporate Controller 1301 EAST 9TH STREET SUITE 3000 CLEVELAND OH 44114

TransDigm Group Headlines

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