Should I Buy TDG Stock in 2026?

Data-driven analysis and honest assessment for Transdigm Group Inc

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $1302.79P/E: 41.8

Decision Score

4.6/10

Weak

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)3/10

High P/E of 41.8 indicates premium

Growth (20%)5/10

Slow growth of 0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)6/10

Decent FCF yield of 4.4%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$1302.79

P/E Ratio

41.84

Revenue Growth

0.1%

Profit Margin

0.2%

Market Cap

$73.6B

Dividend Yield

None

How TDG Compares to Competitors

Understanding how TDG stacks up against peers helps inform your investment decision.

How TDG Compares to Peers

Upcoming Events for TDG

+5 Reasons TO Buy TDG

1. High gross margins of 60%

moderate

Gross margins above 50% typically indicate strong brand value or intellectual property moats.

-5 Reasons NOT to Buy TDG

1. Thin profit margins of 0.2%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. High PEG ratio of 3.2

high risk

PEG above 2 suggests expensive relative to growth rate.

3. Expensive valuation at 42x earnings

medium risk

P/E of 42 is significantly above averages. High expectations leave little room for disappointment.

4. Minimal revenue growth

low risk

Growth of 0.1% barely keeps pace with inflation.

Who Should Buy TDG?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

  • Momentum Traders

    High-growth profile attracts momentum

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Value Investors

    Premium P/E of 42 doesn't fit value criteria

  • Income-Focused Retirees

    No dividend paid

Consider These Alternatives

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Pro tip: Compare TDG directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for TDG

Frequently Asked Questions

What is TDG stock price today?

TDG (Transdigm Group Inc) stock is trading at $1302.79 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is TDG stock going up or down today?

TDG stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy TDG stock now?

The decision to buy TDG depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is TDG a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for TDG based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is TDG stock overvalued or undervalued?

TDG currently trades at a P/E ratio of 41.84, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if TDG is fairly priced.

What is TDG's P/E ratio?

TDG has a price-to-earnings (P/E) ratio of 41.84, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is TDG's market cap?

TDG (Transdigm Group Inc) has a market capitalization of $73.57 billion, making it a mid-cap stock.

What is TDG's price to book ratio?

Price-to-book ratio for TDG is available on our dashboard along with other valuation metrics.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.