TransDigm (TDG): analysis in plain words
Is TransDigm cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
TransDigm (TDG) is listed on the NYSE and we classify it in aerospace and defence. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against TransDigm according to those figures, and the questions people ask most about the stock. No buy or sell tips.
TransDigm (TDG) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $1,216.88 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 36.9x | Price over earnings per share |
| Revenue growth | +22.5% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 21.3% | Profit for every 100 of sales |
| Net debt / EBITDA | 6.0x | Years of operating profit to repay debt |
| Dividend yield | 0.00% | Annual dividend over price |
| Market cap | $67.3 billion | What the stock market values it at |
The TransDigm figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any TDG figure that is not available shows as N/A: we do not estimate it.
How TransDigm makes money
TransDigm makes highly engineered aircraft components such as pumps, valves, actuators, ignition systems and seat belts, many of them sole-source parts. It reports Power and Control, Airframe and Non-aviation segments. Aftermarket sales of replacement parts to airlines and repair shops drive most profits, alongside sales to plane makers and defense customers.
Over the last 12 months, TransDigm brought in revenue of $10.0 billion. For every 100 it sells, TransDigm keeps 59.8 after the direct cost of what it sells (gross margin) and 46.0 after all operating costs (operating margin).
TransDigm against its sector
To know whether a TransDigm figure is high or low you have to put it next to similar companies. This table compares TransDigm with the median of the 12 aerospace and defence companies Fintols covers, with data as of November 4, 2026.
| Figure | TransDigm | aerospace and defence median |
|---|---|---|
| P/E | 36.9x | 24.9x (12) |
| Revenue growth | +22.5% | +14.4% (14) |
| Net margin | 21.3% | 8.2% (14) |
| Dividend yield | 0.00% | 1.17% (14) |
| Net debt / EBITDA | 6.0x | 1.3x (12) |
In short, against the typical aerospace and defence company, TransDigm trades on a higher P/E, grows faster and earns a wider margin. By size, TransDigm ranks number 7 of 10 aerospace and defence companies quoted in USD on Fintols.
The bull case for TransDigm
These are the strengths in the TransDigm figures as of November 4, 2026:
- TransDigm is selling more than a year ago: +22.5% in its latest quarter (the typical aerospace and defence company grew +14.4%).
- Its net margin over the last 12 months is 21.3% (sector median: 8.2%): TransDigm turns a large share of its sales into profit.
- Analysts expect TransDigm earnings to rise: its P/E on the next 12 months of estimated earnings is 25.0x, below the current 36.9x.
The main risk for TransDigm
Debt is heavy: TransDigm carries net debt equal to 6.0x its annual EBITDA. With high interest rates or a weak year, interest payments eat into what it can invest or pay out.
On top of that: the price already assumes a lot: TransDigm trades at 36.9x its last 12 months of earnings, against 24.9x for the aerospace and defence median. If growth disappoints, the multiple can shrink and the share price with it.
And, like the rest of aerospace and defence, TransDigm is exposed to production delays and problems, and changes in defence budgets.
Frequently asked questions about TransDigm
Is it a good time to buy TransDigm stock?
Fintols does not tell you whether to buy or sell TransDigm, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, TransDigm stock trades at $1,216.88, 17% below its 52-week high ($1,463.03) and 14% above its low ($1,071.25). Its P/E is 36.9x against a aerospace and defence median of 24.9x, and 25.0x on the earnings analysts expect over the next 12 months. With TransDigm, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does TransDigm pay a dividend?
No. As of November 4, 2026, TransDigm does not pay a dividend: what it earns stays in the company to grow, invest or, where it does so, buy back shares. Anyone buying TransDigm today is counting on the share price rising, not on income.
Is TransDigm stock expensive?
It depends on what you compare it with. On P/E, TransDigm trades at 36.9x its last 12 months of earnings: more expensive than the aerospace and defence median (24.9x). A high P/E alone does not make TransDigm expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are TransDigm's competitors?
On Fintols we compare TransDigm with Northrop Grumman, L3Harris and RTX, which are also in aerospace and defence. As of November 4, 2026, Northrop Grumman is worth $74.6 billion and trades on a P/E of 16.6; L3Harris is worth $48.4 billion and trades on a P/E of 24.2; RTX is worth $267.8 billion and trades on a P/E of 32.3. Each has a side-by-side comparison with TransDigm below.
TransDigm competitors
- Northrop Grumman (NOC) analysis · TransDigm vs Northrop Grumman comparison
- L3Harris (LHX) analysis · TransDigm vs L3Harris comparison
- RTX (RTX) analysis · TransDigm vs RTX comparison
To understand TransDigm better
More companies like TransDigm: aerospace and defence stocks and S&P 500 companies. Open the full TDG analysis with its valuation and scenarios. Educational content about TransDigm, not investment advice.