Allison Transmission HoldingsALSN -2.08%96 5-Year Yield-on-Cost % is 1.57 as of Jul. 07, 2026, which is 35% below its 10-year median of 2.43. GuruFocus rates ALSN with a GF Scoreâ„¢ of 96/100 and a GF Valueâ„¢ of $127.02 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 870 Vehicles & Parts companies, Allison Transmission Holdings ranks worse than 68.39% on this metric.
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Allison Transmission Holdings 5-Year Yield-on-Cost % Related Terms
ALSN vs ALV, AUR, APTV: 5-Year Yield-on-Cost % Comparison
For the Auto Parts subindustry, Allison Transmission Holdings's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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.
Allison Transmission Holdings 5-Year Yield-on-Cost % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Allison Transmission Holdings (ALSN) has a 5-Year Yield-on-Cost % of 1.57 as of Jul. 07, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Allison Transmission Holdings and its competitors. This is 35% below median its historical median of 2.43. Over the past decade, Allison Transmission Holdings' 5-Year Yield-on-Cost % has ranged from 1.29 to 3.86. According to the industry distribution chart, Allison Transmission Holdings ranks #595 out of 870 companies in the Vehicles & Parts industry, placing it in the top 68.4%.
Is Allison Transmission Holdings' 5-Year Yield-on-Cost % too high?
Allison Transmission Holdings' current 5-Year Yield-on-Cost % of 1.57 is 35% below median its 10-year median of 2.43. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 3.86. The Vehicles & Parts industry median 5-Year Yield-on-Cost % is 3.04. Allison Transmission Holdings' value of 1.57 is 48.3% below this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #595 out of 870 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Allison Transmission Holdings has a GF Scoreâ„¢ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' 5-Year Yield-on-Cost % compare to ALV and AUR?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #595 out of 870 companies for 5-Year Yield-on-Cost %. This places Allison Transmission Holdings in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.04. Allison Transmission Holdings' value of 1.57 is 48.3% below this benchmark. Historically, Allison Transmission Holdings' own 5-Year Yield-on-Cost % has ranged from 1.29 to 3.86 over the past decade. While the company's 10-year median is 2.43 vs. the industry median of 3.04, Allison Transmission Holdings has consistently been below 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 5-Year Yield-on-Cost % for a Vehicles & Parts company?
The median 5-Year Yield-on-Cost % among Vehicles & Parts companies is 3.04, based on 870 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current 5-Year Yield-on-Cost % of 1.57 is 48.3% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median 5-Year Yield-on-Cost % is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current 5-Year Yield-on-Cost % is 1.57, which is 35% below median its own 10-year median of 2.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allison Transmission Holdings stock overvalued right now?
Based on GuruFocus' analysis, Allison Transmission Holdings (ALSN) is currently considered Modestly Undervalued. The stock's GF Value™ is $127.02, compared to a current price of $114.17 — trading 10.1% below its estimated fair value. The current 5-Year Yield-on-Cost % is 1.57, which is 35% below median its 10-year median of 2.43 and 48.3% below the Vehicles & Parts industry median of 3.04. Allison Transmission Holdings' overall GF Score™ is 96/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current 5-Year Yield-on-Cost % is 1.57 as of Jul. 07, 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 Allison Transmission Holdings (ALSN) Overvalued in 2026?
Based on GuruFocus' analysis, Allison Transmission Holdings stock appears to be undervalued.
The current stock price of $114.17 is trading 10.1% below its estimated GF Value™ of $127.02.
GuruFocus considers Allison Transmission Holdings to be Modestly Undervalued.
Key valuation signals for ALSN:
5-Year Yield-on-Cost %: 1.57 (35% below median its 10-year median of 2.43)
GF Value™: $127.02 vs. price of $114.17 (10.1% below fair value)
Industry Position: 48.3% below the Vehicles & Parts median (#595 of 870)
No single metric tells the full story. See the ALSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allison Transmission Holdings Business Description
Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business commands approximately 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motorhomes). Allison also produces commercial hybrid propulsion systems and is developing fully electric powertrains.
96GF Score
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