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:
Below please find a table outlining a discounted cash flow forecast for ALSN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Allison Transmission Holdings Inc ranked in the 43th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ALSN, they are:
The company's compound free cash flow growth rate over the past 5.51 years comes in at -0.02%; that's greater than merely 21.99% of US stocks we're applying DCF forecasting to.
The company has produced more trailing twelve month cash flow than 71.68% of its sector Consumer Cyclical.
Allison Transmission Holdings Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 6.16% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Allison Transmission Holdings Inc? See SIRI, ZAGG, CMCSA, LBTYA, and ESCA.
Just as we did last year we're starting 2021 by looking at the Long Ideas that performed poorly in 2020. Next week, we'll review our best performers. Allison Transmission Holdings Inc (ALSN), Korn Ferry (KFY), and Johnson & Johnson (JNJ) are the Long Idea lowlights for 2020. Despite their underperformance,...