DCF Tool

TDG

Transdigm Group Incorporated – Other Aircraft Parts and Auxiliary Equipment Manufacturing
transdigm group incorporated (nyse: tdg), through its wholly owned subsidiaries, including transdigm inc., 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, nicad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, databus and power controls, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and related components, lighting and control tec
Analysis Results
Intrinsic Value $1,292.69
Latest Price $1,173.41
Relative Value 9% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 13.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.3%, 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)
2024 3.0 2.78
2025 3.4 2.93
2026 3.85 3.08
2027 4.36 3.24
2028 4.95 3.41
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 88.2 billion. This corresponds to a present value of 56.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 15.4 billion. Adding in the terminal value gives a total present value of 71.9 billion.

There are presently 55.6 million outstanding shares, so the intrinsic value per share is 1292.69.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,738,000,000
Current Cash 3,472,000,000
Current Liabilities 1,579,000,000
Current Debt 420,000,000
Non-Cash Working Capital (NCWC) 2,107,000,000
Change in NCWC 459,000,000
EBIT 2,923,000,000
Tax Provision 417,000,000
Depreciation and Amortization 268,000,000
Capital Expenditure -139,000,000
Unlevered Free Cash Flow 2,800,690,559
Current Assets 5,649,000,000
Current Cash 3,001,000,000
Current Liabilities 1,426,000,000
Current Debt 426,000,000
Non-Cash Working Capital (NCWC) 1,648,000,000
Change in NCWC 442,000,000
EBIT 2,215,000,000
Tax Provision 261,000,000
Depreciation and Amortization 253,000,000
Capital Expenditure -119,000,000
Unlevered Free Cash Flow 2,278,031,943
Current Assets 7,030,000,000
Current Cash 4,787,000,000
Current Liabilities 1,663,000,000
Current Debt 626,000,000
Non-Cash Working Capital (NCWC) 1,206,000,000
Change in NCWC -46,000,000
EBIT 1,691,000,000
Tax Provision 34,000,000
Depreciation and Amortization 253,000,000
Capital Expenditure -105,000,000
Unlevered Free Cash Flow 1,712,588,811
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

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