DCF Tool

TDG

Transdigm Group Incorporated – Small Arms Ammunition Manufacturing
TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems.
Analysis Results
Intrinsic Value $5,283.89
Latest Price $531.83
Relative Value 90% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 32.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 5.98 5.58
2023 7.89 6.88
2024 10.4 8.49
2025 13.8 10.5
2026 18.2 12.9
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 365 billion. This corresponds to a present value of 242 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 44.3 billion. Adding in the terminal value gives a total present value of 287 billion.

There are presently 54.2 million outstanding shares, so the intrinsic value per share is 5283.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 14,060,000,000
Current Cash 9,574,000,000
Current Liabilities 3,326,000,000
Current Debt 1,252,000,000
Non-Cash Working Capital (NCWC) 2,412,000,000
Change in NCWC 1,160,000,000
EBIT 3,382,000,000
Tax Provision 68,000,000
Depreciation and Amortization 506,000,000
Capital Expenditure -210,000,000
Unlevered Free Cash Flow 4,677,177,622
Current Assets 6,960,000,000
Current Cash 4,717,000,000
Current Liabilities 1,616,000,000
Current Debt 625,000,000
Non-Cash Working Capital (NCWC) 1,252,000,000
Change in NCWC -1,036,737,000
EBIT 1,751,000,000
Tax Provision 87,000,000
Depreciation and Amortization 283,000,000
Capital Expenditure -105,000,000
Unlevered Free Cash Flow 686,402,189
Current Assets 4,865,247,000
Current Cash 1,467,486,000
Current Liabilities 1,538,756,000
Current Debt 429,732,000
Non-Cash Working Capital (NCWC) 2,288,737,000
Change in NCWC 1,229,513,000
EBIT 1,926,546,000
Tax Provision 221,986,000
Depreciation and Amortization 225,700,000
Capital Expenditure -101,591,000
Unlevered Free Cash Flow 2,877,796,823
Current Assets 3,657,287,000
Current Cash 2,073,017,000
Current Liabilities 900,382,000
Current Debt 375,336,000
Non-Cash Working Capital (NCWC) 1,059,224,000
Change in NCWC 78,186,000
EBIT 1,654,961,000
Tax Provision 24,021,000
Depreciation and Amortization 129,844,000
Capital Expenditure -73,341,000
Unlevered Free Cash Flow 1,749,313,603
Current Assets 2,133,552,000
Current Cash 650,561,000
Current Liabilities 870,994,000
Current Debt 369,041,000
Non-Cash Working Capital (NCWC) 981,038,000
Change in NCWC 137,522,000
EBIT 1,479,826,000
Tax Provision 208,889,000
Depreciation and Amortization 141,025,000
Capital Expenditure -71,013,000
Unlevered Free Cash Flow 1,318,231,388
Current Assets 2,930,697,000
Current Cash 1,586,994,000
Current Liabilities 752,603,000
Current Debt 252,416,000
Non-Cash Working Capital (NCWC) 843,516,000
Change in NCWC 139,962,000
EBIT 1,267,760,000
Tax Provision 181,702,000
Depreciation and Amortization 121,670,000
Capital Expenditure -43,982,000
Unlevered Free Cash Flow 1,185,514,505
Current Assets 1,831,962,000
Current Cash 714,033,000
Current Liabilities 658,215,000
Current Debt 243,840,000
Non-Cash Working Capital (NCWC) 703,554,000
Change in NCWC 180,138,000
EBIT 1,074,002,000
Tax Provision 189,612,000
Depreciation and Amortization 93,663,000
Capital Expenditure -54,871,000
Unlevered Free Cash Flow 973,151,861
Current Assets 1,689,576,000
Current Cash 819,548,000
Current Liabilities 585,907,000
Current Debt 239,295,000
Non-Cash Working Capital (NCWC) 523,416,000
Change in NCWC 59,116,000
EBIT 927,820,000
Tax Provision 141,600,000
Depreciation and Amortization 96,385,000
Capital Expenditure -34,146,000
Unlevered Free Cash Flow 756,251,069
Current Assets 1,320,495,000
Current Cash 564,740,000
Current Liabilities 322,500,000
Current Debt 31,045,000
Non-Cash Working Capital (NCWC) 464,300,000
Change in NCWC 67,708,000
EBIT 749,455,000
Tax Provision 145,700,000
Depreciation and Amortization 73,515,000
Capital Expenditure -35,535,000
Unlevered Free Cash Flow 611,668,592
Current Assets 1,050,531,000
Current Cash 440,524,000
Current Liabilities 233,915,000
Current Debt 20,500,000
Non-Cash Working Capital (NCWC) 396,592,000
Change in NCWC 93,842,000
EBIT 699,775,000
Tax Provision 162,900,000
Depreciation and Amortization 68,227,000
Capital Expenditure -25,246,000
Unlevered Free Cash Flow 602,942,351

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.