Stock fact sheet · data as of
TransDigm Group Incorporated (TDG): fair value, margin of safety and Wheel Score
Industrials · Aerospace & Defense · United States · High Growth
Is TDG undervalued?
At 1,109.77 (close of 16 Oct 2026), TDG trades 10% under the GLS average fair value of 1,238.79. 4 of the 7 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
There is a wide gap between EPV (412.12) and GLS Growth (2,270.69). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files TDG under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for TDG
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 1,905.33 | +72% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 1,323.44 | +19% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 519.12 | -53% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2,270.69 | +105% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 911.50 | -18% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 1,329.35 | +20% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 412.12 | -63% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -462.69 | -142% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 1,489.00 | +34% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
TransDigm Group Incorporated scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability TDG scores 6.2/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 10.2%, ROE -21.4%, ROA 9.1% - with debt at -3.10 times equity and a free-cash-flow yield of 3.1%.
TransDigm Group Incorporated pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Power And Control 55%, Airframe 43%, Non Aviation Related Business 2% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales; the last recorded insider buy was on 18 Sep 2026.
| Piotroski F-score | 6 / 9 | ROIC | 10.2% |
|---|---|---|---|
| GLS Moat | 6.2 / 10 | ROE | -21.4% |
| Debt / equity | -3.10 | ROA | 9.1% |
| Free-cash-flow yield | 3.1% | Payout ratio | 249% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 75: Good
With a Wheel Score of 75 - the Good band - TransDigm Group Incorporated clears the Sunday Scan's "70 or higher" rule. The parts: Value 17/25, Health 13/20, Moat 9/15, Premium 20/20, Stability 15/20; Moat (9/15) scores lowest.
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 6,175 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 316k shares a day on a market cap of $61.3B, with a beta of 0.94; the Stability part of the Wheel Score gives that 15 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 17 / 25 | 10% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 9 / 15 | moat 6.2/10 | |
| Premium | 20 / 20 | implied volatility 36% | |
| Stability | 15 / 20 | 316k shares/day, $61.3B cap, beta 0.94 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 11 Nov 2026 (before the open), 26 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Aerospace & Defense
The 12 companies below are the closest to TransDigm Group Incorporated by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| NOC Northrop Grumman Corporation | 499.63 | 449.01 | -11% | 72Good | $71.0B |
| HONA Honeywell Aerospace Inc | 163.11 | 69.57 | -134% | 45Weak | $51.7B |
| LHX L3Harris Technologies, Inc. | 240.50 | 226.04 | -6% | 76Good | $44.8B |
| HEI-A HEICO Corporation | 231.34 | 133.81 | -73% | 39No options | $43.0B |
| HEI HEICO Corporation | 308.64 | 155.07 | -99% | 58Fair | $43.0B |
| HWM Howmet Aerospace Inc. | 219.75 | 111.60 | -97% | 68Good | $87.6B |
| GD General Dynamics Corporation | 337.03 | 286.36 | -18% | 66Good | $91.2B |
| RKLB Rocket Lab USA, Inc. | 59.18 | - | - | 45Weak | $35.4B |
| ESLT Elbit Systems Ltd. | 741.61 | 363.05 | -104% | 62Fair | $34.8B |
| AXON Axon Enterprise, Inc. | 417.19 | 66.90 | -524% | 49Weak | $33.9B |
| LMT Lockheed Martin Corporation | 532.64 | 439.20 | -21% | 67Good | $122.9B |
| BA The Boeing Company | 188.73 | 78.41 | -141% | 54Fair | $149.2B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about TDG
Is TDG undervalued right now?
By the GLS models, moderately: at 1,109.77 the stock trades 10% below the average fair value of 1,238.79 (data as of 16 Oct 2026).
What is the Wheel Score of TDG and what does it mean?
TDG scores 75 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TDG?
1,238.79 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does TransDigm Group Incorporated report earnings next?
The next earnings report is due on 11 Nov 2026 (before the open), 26 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TDG have listed options, and how liquid are they?
Yes. The nightly snapshot found 872 listed contracts with 6,175 open interest across all expiries and implied volatility of 36% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.