Allison Transmission Holdings, Inc. (ALSN) Company Bio
Allison Transmission Holdings manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles and is a leader in hybrid-propulsion systems for city buses. Allison transmissions are used in a variety of applications including refuse, construction, fire, distribution, bus, motorhomes, defense and energy. The company was founded in 1915 and is based in Indianapolis, Indiana.
ALSN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Allison Transmission Holdings Inc. To summarize, we found that Allison Transmission Holdings Inc ranked in the 64th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 120.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ALSN, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 6.63 -- which is good for besting 64.55% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
Allison Transmission Holdings Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 10.58% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ALSN, try ETH, LEG, WHR, LSYN, and JOUT.
INDIANAPOLIS--(BUSINESS WIRE)--Allison Transmission is pleased to announce an online subscription service that provides users with access to a vast collection of service literature and product manuals once only found in paper format. Covering all current products, this service will offer easier access to Allison Transmission technical and service information in up to 13 translated languages. The Allison HUB™ provides a central landing point for access to Allison publications such as parts catal
Allison Transmission Holdings Inc. (NYSE: ALSN) today announced that its Board of Directors has declared a cash dividend of $0.17 per share on the Company’s common stock for the second quarter of 2020. Payment will be made on May 29, 2020, to stockholders of record at the close of business on May 18, 2020.