Is TransDigm Group Incorporated (TDG) Undervalued?
Based on the current stock price of $1309.24 and a P/E ratio of 40.81,TransDigm Group Incorporated has a PEG ratio of 14.42.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 14.42, TDG appears to be potentially overvalued relative to its growth rate of 2.83%.
Based on a PEG ratio of 14.42 (adjusted for dividends).
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How we analyzed TDG
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 40.81and dividing it by the annual growth rate of 2.83%.
PEG = 40.81 (P/E) ÷ 2.83 (Growth) = 14.42
Frequently Asked Questions about TDG
What is the current PEG Ratio for TransDigm Group Incorporated (TDG)?+
The current PEG Ratio for TransDigm Group Incorporated is 14.42. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is TDG stock undervalued right now?+
Based on the PEG ratio of 14.42, TransDigm Group Incorporated appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for TDG?+
The PEGY ratio for TransDigm Group Incorporated is 14.42. This metric accounts for dividend yield (0.00%), providing a more complete valuation picture.