Transdigm Group Incorporated Transdigm Group Inc. (TDG) Company Bio
TransDigm Group is a producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. The company was founded in 1993 and is based in Cleveland, Ohio.
TDG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TDG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that TransDigm Group INC ranked in the 38th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 44.5%. In terms of the factors that were most noteworthy in this DCF analysis for TDG, they are:
The business' balance sheet suggests that 37% of the company's capital is sourced from debt; this is greater than 68.39% of the free cash flow producing stocks we're observing.
The weighted average cost of capital for the company is 9. This value is greater than merely 21.92% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FWRD, SCTY, ZNH, AME, and NVT can be thought of as valuation peers to TDG, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
TransDigm's (TDG) arm prices its senior subordinated notes with $1,200 million aggregate principal at 4.625% due 2029. The funds to be generated will be utilized in redeeming the notes carrying 6.50% interest.
CLEVELAND, Jan. 14, 2021 /PRNewswire/ -- TransDigm Group Incorporated ("TransDigm Group") (NYSE: TDG) announced today that its wholly-owned subsidiary, TransDigm Inc., priced its private offering of $1,200 million aggregate principal amount of 4.625% Senior Subordinated Notes due 2029…
CLEVELAND, Jan. 14, 2021 /PRNewswire/ -- TransDigm Group Incorporated ("TransDigm Group") (NYSE: TDG) announced today that its wholly-owned subsidiary, TransDigm Inc., is planning, subject to market and other conditions, to offer $1,200 million aggregate principal amount of senior…
Moody's Investors Service ("Moody's") assigned B3 ratings to TransDigm Inc.'s new senior subordinated notes. All other ratings, including the B1 Corporate Family Rating (CFR) and the B1-PD Probability of Default Rating, are unchanged. Ratings on the existing notes due 2024 will be withdrawn upon close.