TDG TransDigm Group
too hard · 69
Owner-earnings value$759.90
Price$1,139.34
Margin of safety
-33.3%
Quality gate · 69/100
⚠ negative book equity · over-levered (net debt/EBITDA 5.4x > 4x)
Median ROIC13.8%
Gross margin59.6%
Net debt / EBITDA5.4x
FCF conversion97%
Share count / yr+1.2%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 1.93B |
| Owner-earnings yield | 3.0% |
| Free-cash-flow yield | 3.0% |
| Growth used (normalized) | 10.0% |
| Market-implied growth (reverse DCF) | 20.2% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.3% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 2.12B | 10.0% | 1.94B |
| 2 | 2.32B | 9.2% | 1.94B |
| 3 | 2.51B | 8.4% | 1.92B |
| 4 | 2.70B | 7.7% | 1.89B |
| 5 | 2.89B | 6.9% | 1.85B |
| 6 | 3.07B | 6.1% | 1.80B |
| 7 | 3.23B | 5.3% | 1.73B |
| 8 | 3.38B | 4.6% | 1.66B |
| 9 | 3.50B | 3.8% | 1.57B |
| 10 | 3.61B | 3.0% | 1.48B |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~20%/yr owner-earnings growth over 10y (reverse DCF); model credits 10%.