TransDigm (TDG) stock
Industrials · Aerospace & Defense
TransDigm (TDG) is an Aerospace & Defense company in the Industrials sector, headquartered in Cleveland, Ohio. As of October 23, 2026, TDG closed at $1,104.84, a market capitalization of $61.07 billion, the 198th largest company in the S&P 500. Over the last twelve months it generated $10.01 billion in revenue (+22% year over year) and $1.93 billion in free cash flow. The stock trades at 33.5x trailing earnings and 22.7x forward earnings.
- 1-year total return: -18.2% (dividends reinvested)
- 5-year return: +15.4% a year
- 52-week range: $1,071.25 – $1,463.03
- Gross margin 59.8%, operating margin 46.0%
- FI Handbook report card: C across 9 metrics
- 34th largest of 83 Industrials stocks in the S&P 500
TDG price chart
1Y price change: -18.2% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| TDG | -0.0% | -16.9% | -18.2% | +16.1% | +15.4% | +19.9% | +26.5% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 2006.
TDG key statistics
- Market cap
- $61.1B
- #198 in S&P 500
- P/E (TTM)
- 33.5x
- Forward P/E
- 22.7x
- EPS (TTM)
- $32.97
- Revenue (TTM)
- $10.0B
- +23%
- Free cash flow
- $1.9B
- Gross margin
- 59.8%
- Operating margin
- 46.0%
- Return on equity
- —
- Dividend yield
- None
- 52-week range
- $1,071 – $1,463
- Beta
- 0.94
- Price / sales
- 6.1x
- EV / EBITDA
- 18.0x
- Debt / equity
- —
- Employees
- 16,500
TDG report card
CTen fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth22.5%A
- Gross margin59.8%B
- Operating margin46.0%A
- FCF margin19.3%B
- Return on equity——
- Net debt / EBITDA6.0xF
- Forward P/E22.7xC
- PEG ratio3.0xF
- Shareholder yield0.8%D
- Share count change / yr0.3%C
Transdigm financials
Revenue went from $3.2B in fiscal 2016 to $8.8B in fiscal 2025, growing 12.1% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.2B | $3.5B | $3.8B | $5.2B | $5.1B | $4.8B | $5.4B | $6.6B | $7.9B | $8.8B |
| Gross profit | $1.7B | $2.0B | $2.2B | $2.8B | $2.6B | $2.5B | $3.1B | $3.8B | $4.7B | $5.3B |
| Operating income | $1.3B | $1.5B | $1.7B | $1.9B | $1.8B | $1.7B | $2.2B | $2.9B | $3.5B | $4.2B |
| Net income | $586.4M | $596.9M | $957.0M | $890.0M | $699.0M | $680.0M | $866.0M | $1.3B | $1.7B | $2.1B |
| EPS (diluted) | — | — | — | — | $8.96 | $10.41 | $13.40 | $22.03 | $25.62 | $32.08 |
| Free cash flow | — | $717.7M | $949.0M | $913.0M | $1.1B | $808.0M | $829.0M | $1.2B | $1.9B | $1.8B |
| Buybacks | $207.8M | $389.8M | $0 | $0 | $19.0M | $0 | $912.0M | $0 | $0 | $500.0M |
| Dividends paid | $3.0M | $2.6B | $56.0M | $1.7B | $1.9B | $73.0M | $1.1B | $38.0M | $2.0B | $9.6B |
| Diluted shares | — | — | — | — | 57.3M | 58.4M | 58.2M | 57.2M | 57.8M | 58.2M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into TDG?
A reverse DCF asks what growth the current price requires. With an enterprise value of $91.8B and $1.9B of trailing free cash flow, Transdigm needs to grow free cash flow about 33.2% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 10.4% a year over the last five years.
P/E ratio history
Current 34.4x vs. median 56.9x (10th–90th percentile 40.7x–67.8x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
TDG analyst price targets
20 analysts' average 12-month target is $1,414 (+28% vs. $1,105). Targets range from $1,100 to $1,745. 52% rate it a buy.
TDG earnings
Next report: November 5, 2026. Transdigm has beaten EPS estimates 4 quarters in a row. Last quarter's revenue was $2.7B (+23% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Aug 4, 2026 | $10.28 | $10.87 | +5.7% |
| May 5, 2026 | $9.71 | $9.85 | +1.5% |
| Feb 3, 2026 | $8.04 | $8.23 | +2.4% |
| Nov 12, 2025 | $10.05 | $10.82 | +7.6% |
| Aug 5, 2025 | $9.90 | $9.60 | -3.0% |
| May 6, 2025 | $8.95 | $9.11 | +1.8% |
| Feb 4, 2025 | $7.74 | $7.83 | +1.1% |
| Nov 7, 2024 | $9.28 | $9.83 | +5.9% |
Stocks like TDG
| Name | Today | 1Y | Mkt cap | P/E | |
|---|---|---|---|---|---|
 GE GE Aerospace | -2.69% | -6% | $296.4B | 32.6x | Compare |
 RTX RTX | -1.90% | +8% | $257.8B | 31.1x | Compare |
 BA Boeing | +0.43% | -14% | $148.9B | 67.3x | Compare |
 LMT Lockheed Martin | +2.42% | +27% | $139.6B | 21.5x | Compare |
 GD General Dynamics | -0.41% | +4% | $94.5B | 21.3x | Compare |
 NOC Northrop Grumman | -0.16% | -7% | $78.3B | 17.4x | Compare |
 HWM Howmet Aerospace | -3.82% | -7% | $74.1B | 40.1x | Compare |
 HONA Honeywell Aerospace | +0.18% | — | $51.8B | 49.8x | Compare |
TDG news
- TransDigm Group (TDG) Stock Still Appears Undervalued As 5 Year Gain Hits 111% · Oct 17, 2026
- TransDigm Group (TDG) Could Be 23% Undervalued On Top Pick Calls · Oct 16, 2026
- Here's How Much You'd Have If You Invested $1000 in TransDigm Group a Decade Ago · Oct 16, 2026
- TransDigm (TDG) Has Negative Book Value of almost $168 a Share. Is That a Problem? · Oct 13, 2026
- Will TransDigm (TDG) Beat Estimates Again in Its Next Earnings Report? · Oct 12, 2026
TDG stock FAQ
What is TDG's market cap?
TransDigm's market capitalization is $61.07 billion as of October 23, 2026, ranking 198th in the S&P 500.
What is TDG's P/E ratio?
TDG trades at a trailing price-to-earnings ratio of 33.5x and a forward P/E of 22.7x. Its median P/E over the period we track is 56.9x.
Does TDG pay a dividend?
No. TransDigm does not currently pay a regular cash dividend.
How much has TDG stock returned?
Including reinvested dividends, TDG returned -18.2% over one year, +15.4% a year over five years, +19.9% a year over ten years through October 23, 2026.
Is TDG stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies TransDigm must grow free cash flow about 33% a year for the next decade. Its free cash flow grew 10% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
What is the TDG price target?
20 analysts cover TDG with an average 12-month price target of $1,414.30, +28% from the current price. 52% of them rate it a buy.
When does TDG report earnings?
TransDigm is expected to report earnings on November 5, 2026. It has beaten EPS estimates 4 quarters in a row.
How many employees does TransDigm have?
TransDigm has about 16,500 full-time employees, or $606,424 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology