TransDigm Group (TDG)
Forward P/E is 24.34x against a peer median of 20.94x, a ratio of 1.16x — just above the fair range — with trailing P/E 34.40x and PEG 1.56. Latest-quarter revenue grew 22.5% year over year (PRIMARY, EDGAR), far above the group median, but the growth exception narrowly fails because the PEG of 1.56 sits just above the ~1.5 line. Delivered demand check: the aerospace & defense group's median growth was 11.0% year over year — demand rising.
What would change this label: Move to FAIRLY PRICED if the forward P/E compresses to about 24.1x or below (1.15x the peer median) at unchanged estimates, or if the PEG falls to 1.5 or below while revenue growth stays above 20% year over year for two quarters. Move to BUBBLE if the forward P/E rises above about 41.9x (2.00x the peer median), or if revenue growth falls below 11% year over year while the forward multiple stays above 24x.
TransDigm makes aircraft parts and sells the replacements that airlines and repair shops need, and its sales grew 22.5% in the latest quarter, double the pace of similar companies. Its shares cost a little more per dollar of expected earnings than those peers charge, and the strong growth almost — but not quite — covers that extra price. The shares look slightly overvalued.
Both lines start at 100 on 2020-09-01. Over the full window TransDigm Group returned +124.35% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for TransDigm Group: -33.6% (2025-07-30 to 2026-09-17). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 24.34x against a peer median of 20.94x, a ratio of 1.16x — just above the fair range — with trailing P/E 34.40x and PEG 1.56. Latest-quarter revenue grew 22.5% year over year (PRIMARY, EDGAR), far above the group median, but the growth exception narrowly fails because the PEG of 1.56 sits just above the ~1.5 line. Delivered demand check: the aerospace & defense group's median growth was 11.0% year over year — demand rising. The company’s forward P/E is 24.3× against a peer median of 20.9×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the aerospace & defense group's median latest-quarter revenue growth was 11.0% year over year (SEC filings) — demand rising. This company grew much faster than the group, at 22.5%. Latest-quarter sales growth was +22.5% versus a year earlier (SEC filings).
| Company | Price (Oct 28, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| TransDigm Group (TDG) | $1,133.93 | 24.3× | 34.4× |
| HONA | — | 20.4× | 27.1× |
| HWM | — | 33.1× | 42.3× |
| LHX | — | 20.9× | 26.1× |
| NOC | — | 18.7× | 17.3× |
| AXON | — | 47.3× | 175.4× |
| Peer median | 20.9× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
Gross margin = gross profit divided by sales, from SEC filings.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Jun 2026 2026-06-27 | $2.7B | 59.4% | $539M | 9.39 | $650M |
| Q/E Mar 2026 2026-03-28 | $2.5B | 59.4% | $535M | 9.20 | $64M |
| Q/E Dec 2025 2025-12-27 | $2.3B | 59.2% | $445M | 6.62 | $772M |
| Q/E Sep 2025 2025-09-30 | $2.4B | 60.3% | $610M | — | $441M |
| Q/E Jun 2025 2025-06-28 | $2.2B | 59.5% | $492M | 8.47 | $573M |
| Q/E Mar 2025 2025-03-29 | $2.1B | 59.3% | $479M | 8.24 | $92M |
| Q/E Dec 2024 2024-12-28 | $2.0B | 61.6% | $493M | 7.62 | $710M |
| Q/E Sep 2024 2024-09-30 | $2.2B | 57.6% | $468M | — | $531M |
| Q/E Jun 2024 2024-06-29 | $2.0B | 59.6% | $461M | 7.96 | $568M |
| Q/E Mar 2024 2024-03-30 | $1.9B | 60.0% | $403M | 6.97 | $181M |
| Q/E Dec 2023 2023-12-30 | $1.8B | 58.2% | $382M | 4.87 | $600M |
| Q/E Sep 2023 2023-09-30 | $1.9B | 59.0% | $415M | — | $425M |
The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | TransDigm Group INC |
| Chief executive | Mike Lisman (source: https://en.wikipedia.org/wiki/TransDigm_Group) |
| Sector | Industrials — Aerospace & Defense — makes aircraft parts and sells the replacement parts airlines and repair shops need |
| Share price (Oct 28, 2026) | $1,133.93 |
| Market value (market cap) | $62.5B — share price times shares outstanding of 55,276,525 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $10.0B |
| Net income, last twelve months | $2.1B |
| Free cash flow, last twelve months | $1.9B |
| Latest reported quarter | Q/E Jun 2026 (of 24 quarters in the data pack) |
| Six-year price return vs S&P 500 | +124.35% vs +118.28% |
| Worst peak-to-trough fall | -33.6% (2025-07-30 to 2026-09-17) |
What we could not verify
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Own-history P/E (5-year median): not computed in the Phase 1 batch — UNVERIFIED
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0001260221.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0001260221.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/TDG/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.