Intrinsic value of Allison Transmission Holdings - ALSN

Previous Close

$44.47

  Intrinsic Value

$140.50

stock screener

  Rating & Target

str. buy

+216%

Previous close

$44.47

 
Intrinsic value

$140.50

 
Up/down potential

+216%

 
Rating

str. buy

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ALSN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -7.35
  37.10
  33.89
  31.00
  28.40
  26.06
  23.95
  22.06
  20.35
  18.82
  17.44
  16.19
  15.07
  14.07
  13.16
  12.34
  11.61
  10.95
  10.35
  9.82
  9.34
  8.90
  8.51
  8.16
  7.85
  7.56
  7.30
  7.07
  6.87
  6.68
  6.51
Revenue, $m
  1,840
  2,523
  3,378
  4,425
  5,681
  7,162
  8,877
  10,836
  13,041
  15,495
  18,197
  21,144
  24,331
  27,753
  31,405
  35,282
  39,378
  43,689
  48,212
  52,945
  57,889
  63,042
  68,409
  73,991
  79,796
  85,829
  92,098
  98,614
  105,385
  112,425
  119,746
Variable operating expenses, $m
 
  1,906
  2,486
  3,196
  4,049
  5,054
  6,218
  7,546
  9,043
  10,708
  12,541
  14,346
  16,509
  18,831
  21,309
  23,939
  26,718
  29,643
  32,712
  35,924
  39,278
  42,775
  46,416
  50,204
  54,143
  58,236
  62,490
  66,910
  71,505
  76,281
  81,249
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  1,390
  1,906
  2,486
  3,196
  4,049
  5,054
  6,218
  7,546
  9,043
  10,708
  12,541
  14,346
  16,509
  18,831
  21,309
  23,939
  26,718
  29,643
  32,712
  35,924
  39,278
  42,775
  46,416
  50,204
  54,143
  58,236
  62,490
  66,910
  71,505
  76,281
  81,249
Operating income, $m
  451
  617
  892
  1,228
  1,632
  2,108
  2,660
  3,289
  3,999
  4,787
  5,656
  6,797
  7,822
  8,922
  10,096
  11,343
  12,659
  14,045
  15,500
  17,021
  18,611
  20,267
  21,993
  23,787
  25,654
  27,593
  29,609
  31,703
  33,880
  36,143
  38,497
EBITDA, $m
  627
  926
  1,240
  1,624
  2,085
  2,629
  3,259
  3,977
  4,787
  5,688
  6,679
  7,761
  8,931
  10,187
  11,528
  12,951
  14,454
  16,036
  17,697
  19,434
  21,249
  23,140
  25,110
  27,159
  29,290
  31,504
  33,806
  36,197
  38,683
  41,267
  43,954
Interest expense (income), $m
  78
  75
  116
  167
  229
  304
  392
  494
  611
  742
  888
  1,049
  1,224
  1,414
  1,618
  1,835
  2,066
  2,310
  2,567
  2,836
  3,118
  3,412
  3,719
  4,038
  4,370
  4,716
  5,075
  5,448
  5,836
  6,239
  6,658
Earnings before tax, $m
  341
  542
  776
  1,062
  1,403
  1,804
  2,268
  2,795
  3,388
  4,045
  4,768
  5,748
  6,598
  7,508
  8,479
  9,507
  10,593
  11,736
  12,933
  14,186
  15,493
  16,856
  18,274
  19,749
  21,283
  22,877
  24,533
  26,255
  28,044
  29,904
  31,839
Tax expense, $m
  126
  146
  209
  287
  379
  487
  612
  755
  915
  1,092
  1,287
  1,552
  1,781
  2,027
  2,289
  2,567
  2,860
  3,169
  3,492
  3,830
  4,183
  4,551
  4,934
  5,332
  5,746
  6,177
  6,624
  7,089
  7,572
  8,074
  8,596
Net income, $m
  215
  395
  566
  775
  1,024
  1,317
  1,656
  2,041
  2,473
  2,953
  3,481
  4,196
  4,816
  5,481
  6,189
  6,940
  7,733
  8,567
  9,441
  10,355
  11,310
  12,305
  13,340
  14,417
  15,537
  16,700
  17,909
  19,166
  20,472
  21,830
  23,242

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  205
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,219
  5,508
  7,375
  9,661
  12,405
  15,637
  19,383
  23,659
  28,474
  33,833
  39,732
  46,165
  53,124
  60,596
  68,570
  77,034
  85,977
  95,390
  105,266
  115,602
  126,394
  137,647
  149,364
  161,553
  174,227
  187,400
  201,088
  215,313
  230,098
  245,468
  261,453
Adjusted assets (=assets-cash), $m
  4,014
  5,508
  7,375
  9,661
  12,405
  15,637
  19,383
  23,659
  28,474
  33,833
  39,732
  46,165
  53,124
  60,596
  68,570
  77,034
  85,977
  95,390
  105,266
  115,602
  126,394
  137,647
  149,364
  161,553
  174,227
  187,400
  201,088
  215,313
  230,098
  245,468
  261,453
Revenue / Adjusted assets
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
Average production assets, $m
  1,761
  2,414
  3,232
  4,234
  5,437
  6,854
  8,496
  10,370
  12,480
  14,829
  17,415
  20,235
  23,285
  26,560
  30,055
  33,765
  37,684
  41,810
  46,139
  50,669
  55,399
  60,331
  65,467
  70,810
  76,365
  82,138
  88,138
  94,373
  100,853
  107,590
  114,597
Working capital, $m
  206
  18
  24
  31
  40
  50
  62
  76
  91
  108
  127
  148
  170
  194
  220
  247
  276
  306
  337
  371
  405
  441
  479
  518
  559
  601
  645
  690
  738
  787
  838
Total debt, $m
  2,159
  3,311
  4,765
  6,546
  8,683
  11,201
  14,119
  17,450
  21,201
  25,376
  29,971
  34,983
  40,404
  46,225
  52,436
  59,030
  65,996
  73,329
  81,023
  89,074
  97,481
  106,247
  115,374
  124,870
  134,743
  145,004
  155,668
  166,749
  178,266
  190,240
  202,692
Total liabilities, $m
  3,138
  4,291
  5,745
  7,526
  9,663
  12,181
  15,099
  18,430
  22,181
  26,356
  30,951
  35,963
  41,384
  47,205
  53,416
  60,010
  66,976
  74,309
  82,003
  90,054
  98,461
  107,227
  116,354
  125,850
  135,723
  145,984
  156,648
  167,729
  179,246
  191,220
  203,672
Total equity, $m
  1,080
  1,217
  1,630
  2,135
  2,741
  3,456
  4,284
  5,229
  6,293
  7,477
  8,781
  10,203
  11,740
  13,392
  15,154
  17,025
  19,001
  21,081
  23,264
  25,548
  27,933
  30,420
  33,009
  35,703
  38,504
  41,415
  44,441
  47,584
  50,852
  54,249
  57,781
Total liabilities and equity, $m
  4,218
  5,508
  7,375
  9,661
  12,404
  15,637
  19,383
  23,659
  28,474
  33,833
  39,732
  46,166
  53,124
  60,597
  68,570
  77,035
  85,977
  95,390
  105,267
  115,602
  126,394
  137,647
  149,363
  161,553
  174,227
  187,399
  201,089
  215,313
  230,098
  245,469
  261,453
Debt-to-equity ratio
  1.999
  2.720
  2.920
  3.070
  3.170
  3.240
  3.300
  3.340
  3.370
  3.390
  3.410
  3.430
  3.440
  3.450
  3.460
  3.470
  3.470
  3.480
  3.480
  3.490
  3.490
  3.490
  3.500
  3.500
  3.500
  3.500
  3.500
  3.500
  3.510
  3.510
  3.510
Adjusted equity ratio
  0.218
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  215
  395
  566
  775
  1,024
  1,317
  1,656
  2,041
  2,473
  2,953
  3,481
  4,196
  4,816
  5,481
  6,189
  6,940
  7,733
  8,567
  9,441
  10,355
  11,310
  12,305
  13,340
  14,417
  15,537
  16,700
  17,909
  19,166
  20,472
  21,830
  23,242
Depreciation, amort., depletion, $m
  176
  309
  348
  396
  453
  520
  599
  688
  788
  900
  1,023
  964
  1,109
  1,265
  1,431
  1,608
  1,794
  1,991
  2,197
  2,413
  2,638
  2,873
  3,117
  3,372
  3,636
  3,911
  4,197
  4,494
  4,803
  5,123
  5,457
Funds from operations, $m
  656
  705
  914
  1,171
  1,477
  1,838
  2,254
  2,728
  3,261
  3,853
  4,504
  5,160
  5,925
  6,746
  7,621
  8,548
  9,528
  10,558
  11,638
  12,768
  13,948
  15,177
  16,457
  17,789
  19,173
  20,612
  22,107
  23,660
  25,275
  26,953
  28,699
Change in working capital, $m
  65
  5
  6
  7
  9
  10
  12
  14
  15
  17
  19
  21
  22
  24
  26
  27
  29
  30
  32
  33
  35
  36
  38
  39
  41
  42
  44
  46
  47
  49
  51
Cash from operations, $m
  591
  700
  908
  1,163
  1,469
  1,827
  2,242
  2,715
  3,246
  3,836
  4,485
  5,139
  5,903
  6,722
  7,595
  8,521
  9,499
  10,528
  11,607
  12,735
  13,913
  15,141
  16,420
  17,750
  19,132
  20,569
  22,063
  23,614
  25,227
  26,904
  28,648
Maintenance CAPEX, $m
  0
  -84
  -115
  -154
  -202
  -259
  -326
  -405
  -494
  -594
  -706
  -829
  -964
  -1,109
  -1,265
  -1,431
  -1,608
  -1,794
  -1,991
  -2,197
  -2,413
  -2,638
  -2,873
  -3,117
  -3,372
  -3,636
  -3,911
  -4,197
  -4,494
  -4,803
  -5,123
New CAPEX, $m
  -72
  -654
  -818
  -1,002
  -1,203
  -1,417
  -1,642
  -1,874
  -2,111
  -2,349
  -2,586
  -2,820
  -3,050
  -3,275
  -3,495
  -3,710
  -3,920
  -4,126
  -4,329
  -4,530
  -4,731
  -4,932
  -5,136
  -5,343
  -5,555
  -5,774
  -6,000
  -6,235
  -6,480
  -6,737
  -7,006
Cash from investing activities, $m
  -71
  -738
  -933
  -1,156
  -1,405
  -1,676
  -1,968
  -2,279
  -2,605
  -2,943
  -3,292
  -3,649
  -4,014
  -4,384
  -4,760
  -5,141
  -5,528
  -5,920
  -6,320
  -6,727
  -7,144
  -7,570
  -8,009
  -8,460
  -8,927
  -9,410
  -9,911
  -10,432
  -10,974
  -11,540
  -12,129
Free cash flow, $m
  520
  -38
  -25
  7
  64
  152
  274
  436
  642
  893
  1,193
  1,490
  1,889
  2,338
  2,835
  3,380
  3,971
  4,608
  5,287
  6,008
  6,770
  7,571
  8,411
  9,290
  10,206
  11,159
  12,152
  13,182
  14,253
  15,364
  16,518
Issuance/(repayment) of debt, $m
  -215
  1,164
  1,454
  1,781
  2,137
  2,518
  2,918
  3,331
  3,751
  4,174
  4,595
  5,012
  5,421
  5,821
  6,212
  6,593
  6,967
  7,333
  7,693
  8,051
  8,408
  8,766
  9,128
  9,496
  9,873
  10,261
  10,663
  11,081
  11,517
  11,974
  12,452
Issuance/(repurchase) of shares, $m
  -233
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -464
  1,164
  1,454
  1,781
  2,137
  2,518
  2,918
  3,331
  3,751
  4,174
  4,595
  5,012
  5,421
  5,821
  6,212
  6,593
  6,967
  7,333
  7,693
  8,051
  8,408
  8,766
  9,128
  9,496
  9,873
  10,261
  10,663
  11,081
  11,517
  11,974
  12,452
Total cash flow (excl. dividends), $m
  54
  1,126
  1,429
  1,788
  2,202
  2,670
  3,192
  3,767
  4,393
  5,067
  5,789
  6,502
  7,310
  8,159
  9,047
  9,974
  10,938
  11,940
  12,980
  14,059
  15,178
  16,337
  17,539
  18,785
  20,078
  21,421
  22,815
  24,264
  25,770
  27,338
  28,970
Retained Cash Flow (-), $m
  109
  -330
  -413
  -505
  -606
  -714
  -828
  -945
  -1,064
  -1,184
  -1,304
  -1,422
  -1,538
  -1,651
  -1,762
  -1,871
  -1,976
  -2,080
  -2,183
  -2,284
  -2,385
  -2,487
  -2,589
  -2,694
  -2,801
  -2,911
  -3,025
  -3,144
  -3,267
  -3,397
  -3,533
Prev. year cash balance distribution, $m
 
  193
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  989
  1,017
  1,283
  1,595
  1,955
  2,364
  2,822
  3,329
  3,883
  4,485
  5,080
  5,772
  6,507
  7,285
  8,103
  8,962
  9,860
  10,798
  11,775
  12,792
  13,850
  14,949
  16,091
  17,278
  18,510
  19,790
  21,120
  22,503
  23,941
  25,438
Discount rate, %
 
  8.30
  8.72
  9.15
  9.61
  10.09
  10.59
  11.12
  11.68
  12.26
  12.88
  13.52
  14.20
  14.91
  15.65
  16.43
  17.26
  18.12
  19.02
  19.97
  20.97
  22.02
  23.12
  24.28
  25.49
  26.77
  28.11
  29.51
  30.99
  32.54
  34.16
PV of cash for distribution, $m
 
  913
  860
  987
  1,105
  1,209
  1,292
  1,349
  1,376
  1,371
  1,336
  1,259
  1,174
  1,069
  951
  827
  702
  581
  470
  370
  284
  212
  154
  108
  74
  49
  32
  20
  12
  7
  4
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Allison Transmission Holdings, Inc. and its subsidiaries design and manufacture commercial and defense fully-automatic transmissions. The Company manufactures fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium-and heavy-tactical United States defense vehicles. The Company's transmissions are used in a range of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (energy, mining and construction) and defense vehicles (wheeled and tracked). The Company's transmissions are sold under the Allison Transmission brand name and remanufactured transmissions are sold under the ReTran brand name. The Company has developed over 100 different models that were used in more than 2,500 different vehicle configurations and were compatible with over 500 combinations of engines, as of December 31, 2016.

FINANCIAL RATIOS  of  Allison Transmission Holdings (ALSN)

Valuation Ratios
P/E Ratio 33.9
Price to Sales 4
Price to Book 6.7
Price to Tangible Book
Price to Cash Flow 12.3
Price to Free Cash Flow 14
Growth Rates
Sales Growth Rate -7.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 20%
Cap. Spend. - 3 Yr. Gr. Rate -2.8%
Financial Strength
Quick Ratio 17
Current Ratio 0.1
LT Debt to Equity 198.8%
Total Debt to Equity 199.9%
Interest Coverage 5
Management Effectiveness
Return On Assets 6.1%
Ret/ On Assets - 3 Yr. Avg. 6.1%
Return On Total Capital 6.3%
Ret/ On T. Cap. - 3 Yr. Avg. 5.6%
Return On Equity 19%
Return On Equity - 3 Yr. Avg. 16.4%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 47%
Gross Margin - 3 Yr. Avg. 46.6%
EBITDA Margin 32.3%
EBITDA Margin - 3 Yr. Avg. 31.3%
Operating Margin 24.5%
Oper. Margin - 3 Yr. Avg. 23.3%
Pre-Tax Margin 18.5%
Pre-Tax Margin - 3 Yr. Avg. 16.8%
Net Profit Margin 11.7%
Net Profit Margin - 3 Yr. Avg. 10.5%
Effective Tax Rate 37%
Eff/ Tax Rate - 3 Yr. Avg. 37.2%
Payout Ratio 47%

ALSN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ALSN stock intrinsic value calculation we used $1840 million for the last fiscal year's total revenue generated by Allison Transmission Holdings. The default revenue input number comes from 2016 income statement of Allison Transmission Holdings. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ALSN stock valuation model: a) initial revenue growth rate of 37.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.3%, whose default value for ALSN is calculated based on our internal credit rating of Allison Transmission Holdings, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Allison Transmission Holdings.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ALSN stock the variable cost ratio is equal to 78.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ALSN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Allison Transmission Holdings.

Corporate tax rate of 27% is the nominal tax rate for Allison Transmission Holdings. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ALSN stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ALSN are equal to 95.7%.

Life of production assets of 21 years is the average useful life of capital assets used in Allison Transmission Holdings operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ALSN is equal to 0.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1080 million for Allison Transmission Holdings - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 143.487 million for Allison Transmission Holdings is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Allison Transmission Holdings at the current share price and the inputted number of shares is $6.4 billion.

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Financial statements of ALSN
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