TransDigm Group Inc. (TDG) intrinsic value & 10-year financials

TransDigm Group Inc. (TDG) has a Graham intrinsic value of $1,065.56 per share. At $1,139.34 on Oct 17, 2026, the stock trades 7% above that value. Over the last 10 fiscal years revenue grew 12.1% a year to $8.8B, with an average return on invested capital of 16.4%.

Graham intrinsic value
$1,065.56
Share price (Oct 17, 2026)
$1,139.34
Price vs Graham value
7% above
Market cap
$66.3B
Revenue (FY2025)
$8.8B
Revenue growth (10-yr CAGR)
12.1%
ROIC (10-yr avg)
16.4%
Free cash flow (FY2025)
$1.8B

TDG 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $8.8B $2.1B $32.08 $1.8B 47.2% 23.1%
FY2024 $7.9B $1.7B $25.62 $1.9B 44.5% 21.3%
FY2023 $6.6B $1.3B $22.03 $1.2B 44.4% 16.7%
FY2022 $5.4B $866.0M $13.40 $829.0M 40.8% 14.0%
FY2021 $4.8B $680.0M $10.41 $808.0M 35.2% 14.4%
FY2020 $5.1B $699.0M $8.96 $1.1B 34.3% 13.6%
FY2019 $5.2B $889.8M — $913.9M 36.9% 14.8%
FY2018 $3.8B $957.1M — $948.8M 43.4% 19.5%
FY2017 $3.5B $596.9M — $717.7M 42.2% 14.0%
FY2016 $3.2B $586.4M — $624.9M 40.0% 12.5%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

TransDigm Group is a consistent compounder, expanding top-line revenue at 12.1% annually over the past decade.

TransDigm Group has earned high returns on invested capital, averaging 16.4% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

Over the decade, TransDigm Group shows that the company has leveraged its balance sheet to sustain operations.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, TransDigm Group is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $1065.56 per share.

TDG stock: frequently asked questions

What is the intrinsic value of TransDigm Group Inc. (TDG) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, TDG's intrinsic value is about $1,065.56 per share.

Is TDG stock undervalued?

At $1,139.34 (close on Oct 17, 2026), TDG trades 7% above its Graham value of $1,065.56. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has TransDigm Group Inc. grown?

Revenue went from $3.2B in fiscal 2016 to $8.8B in fiscal 2025, a compound annual growth rate of 12.1%. Net income was $2.1B in fiscal 2025.

Does TransDigm Group Inc. generate free cash flow?

TransDigm Group Inc. generated $1.8B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is TDG's return on invested capital?

Average ROIC over the last 10 fiscal years was 16.4%, and average return on equity was -38.0%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this TDG data come from?

From TransDigm Group Inc.'s annual 10-K filings on SEC EDGAR. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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