Intrinsic value of TransDigm Group - TDG

Previous Close

$356.54

  Intrinsic Value

$66.94

stock screener

  Rating & Target

str. sell

-81%

Previous close

$356.54

 
Intrinsic value

$66.94

 
Up/down potential

-81%

 
Rating

str. sell

We calculate the intrinsic value of TDG 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

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 20.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  10.50
  9.95
  9.45
  9.01
  8.61
  8.25
  7.92
  7.63
  7.37
  7.13
  6.92
  6.73
  6.55
  6.40
  6.26
  6.13
  6.02
  5.92
  5.83
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
  5.39
  5.36
  5.32
  5.29
  5.26
Revenue, $m
  3,872
  4,257
  4,660
  5,080
  5,517
  5,972
  6,445
  6,937
  7,448
  7,979
  8,531
  9,105
  9,701
  10,322
  10,968
  11,641
  12,341
  13,071
  13,833
  14,627
  15,457
  16,322
  17,227
  18,172
  19,161
  20,194
  21,276
  22,408
  23,592
  24,833
Variable operating expenses, $m
  1,327
  1,385
  1,445
  1,508
  1,574
  1,642
  1,713
  1,787
  1,864
  1,943
  1,280
  1,366
  1,455
  1,548
  1,645
  1,746
  1,851
  1,961
  2,075
  2,194
  2,319
  2,449
  2,584
  2,726
  2,874
  3,029
  3,192
  3,361
  3,539
  3,725
Fixed operating expenses, $m
  787
  804
  822
  840
  859
  877
  897
  916
  937
  957
  978
  1,000
  1,022
  1,044
  1,067
  1,091
  1,115
  1,139
  1,164
  1,190
  1,216
  1,243
  1,270
  1,298
  1,327
  1,356
  1,386
  1,416
  1,447
  1,479
Total operating expenses, $m
  2,114
  2,189
  2,267
  2,348
  2,433
  2,519
  2,610
  2,703
  2,801
  2,900
  2,258
  2,366
  2,477
  2,592
  2,712
  2,837
  2,966
  3,100
  3,239
  3,384
  3,535
  3,692
  3,854
  4,024
  4,201
  4,385
  4,578
  4,777
  4,986
  5,204
Operating income, $m
  1,758
  2,068
  2,392
  2,731
  3,084
  3,452
  3,835
  4,233
  4,648
  5,078
  6,273
  6,739
  7,224
  7,729
  8,255
  8,804
  9,375
  9,971
  10,593
  11,243
  11,922
  12,631
  13,372
  14,148
  14,960
  15,809
  16,698
  17,630
  18,606
  19,629
EBITDA, $m
  3,363
  3,759
  4,172
  4,604
  5,054
  5,523
  6,011
  6,518
  7,046
  7,594
  8,165
  8,758
  9,376
  10,019
  10,688
  11,385
  12,112
  12,871
  13,662
  14,487
  15,350
  16,251
  17,193
  18,179
  19,209
  20,288
  21,417
  22,600
  23,839
  25,137
Interest expense (income), $m
  588
  647
  482
  536
  593
  652
  714
  778
  845
  914
  986
  1,061
  1,139
  1,220
  1,304
  1,392
  1,483
  1,578
  1,676
  1,779
  1,887
  1,999
  2,116
  2,238
  2,365
  2,499
  2,638
  2,784
  2,936
  3,096
  3,263
Earnings before tax, $m
  1,111
  1,586
  1,856
  2,138
  2,432
  2,738
  3,057
  3,388
  3,733
  4,092
  5,212
  5,600
  6,004
  6,425
  6,864
  7,321
  7,798
  8,295
  8,814
  9,356
  9,923
  10,515
  11,135
  11,783
  12,461
  13,171
  13,914
  14,693
  15,510
  16,366
Tax expense, $m
  300
  428
  501
  577
  657
  739
  825
  915
  1,008
  1,105
  1,407
  1,512
  1,621
  1,735
  1,853
  1,977
  2,105
  2,240
  2,380
  2,526
  2,679
  2,839
  3,006
  3,181
  3,364
  3,556
  3,757
  3,967
  4,188
  4,419
Net income, $m
  811
  1,158
  1,355
  1,561
  1,775
  1,999
  2,232
  2,474
  2,725
  2,987
  3,804
  4,088
  4,383
  4,690
  5,011
  5,344
  5,692
  6,055
  6,434
  6,830
  7,244
  7,676
  8,128
  8,601
  9,096
  9,615
  10,158
  10,726
  11,322
  11,947

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  11,031
  12,129
  13,275
  14,472
  15,717
  17,014
  18,362
  19,763
  21,219
  22,732
  24,304
  25,939
  27,639
  29,407
  31,248
  33,164
  35,160
  37,241
  39,410
  41,673
  44,036
  46,502
  49,079
  51,773
  54,588
  57,533
  60,615
  63,839
  67,215
  70,750
Adjusted assets (=assets-cash), $m
  11,031
  12,129
  13,275
  14,472
  15,717
  17,014
  18,362
  19,763
  21,219
  22,732
  24,304
  25,939
  27,639
  29,407
  31,248
  33,164
  35,160
  37,241
  39,410
  41,673
  44,036
  46,502
  49,079
  51,773
  54,588
  57,533
  60,615
  63,839
  67,215
  70,750
Revenue / Adjusted assets
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
  0.351
Average production assets, $m
  8,588
  9,442
  10,335
  11,266
  12,236
  13,245
  14,295
  15,386
  16,519
  17,697
  18,921
  20,194
  21,517
  22,894
  24,327
  25,819
  27,373
  28,992
  30,681
  32,443
  34,283
  36,203
  38,209
  40,306
  42,498
  44,791
  47,189
  49,700
  52,328
  55,080
Working capital, $m
  643
  707
  774
  843
  916
  991
  1,070
  1,151
  1,236
  1,324
  1,416
  1,511
  1,610
  1,713
  1,821
  1,932
  2,049
  2,170
  2,296
  2,428
  2,566
  2,710
  2,860
  3,017
  3,181
  3,352
  3,532
  3,720
  3,916
  4,122
Total debt, $m
  8,764
  9,752
  10,784
  11,860
  12,982
  14,148
  15,361
  16,622
  17,933
  19,295
  20,710
  22,181
  23,711
  25,303
  26,959
  28,683
  30,480
  32,353
  34,305
  36,342
  38,468
  40,688
  43,007
  45,431
  47,966
  50,616
  53,389
  56,291
  59,329
  62,511
Total liabilities, $m
  9,928
  10,916
  11,948
  13,024
  14,146
  15,312
  16,525
  17,786
  19,097
  20,459
  21,874
  23,345
  24,875
  26,467
  28,123
  29,847
  31,644
  33,517
  35,469
  37,506
  39,632
  41,852
  44,171
  46,595
  49,130
  51,780
  54,553
  57,455
  60,493
  63,675
Total equity, $m
  1,103
  1,213
  1,328
  1,447
  1,572
  1,701
  1,836
  1,976
  2,122
  2,273
  2,430
  2,594
  2,764
  2,941
  3,125
  3,316
  3,516
  3,724
  3,941
  4,167
  4,404
  4,650
  4,908
  5,177
  5,459
  5,753
  6,061
  6,384
  6,721
  7,075
Total liabilities and equity, $m
  11,031
  12,129
  13,276
  14,471
  15,718
  17,013
  18,361
  19,762
  21,219
  22,732
  24,304
  25,939
  27,639
  29,408
  31,248
  33,163
  35,160
  37,241
  39,410
  41,673
  44,036
  46,502
  49,079
  51,772
  54,589
  57,533
  60,614
  63,839
  67,214
  70,750
Debt-to-equity ratio
  7.940
  8.040
  8.120
  8.200
  8.260
  8.320
  8.370
  8.410
  8.450
  8.490
  8.520
  8.550
  8.580
  8.600
  8.630
  8.650
  8.670
  8.690
  8.700
  8.720
  8.740
  8.750
  8.760
  8.780
  8.790
  8.800
  8.810
  8.820
  8.830
  8.840
Adjusted equity ratio
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  811
  1,158
  1,355
  1,561
  1,775
  1,999
  2,232
  2,474
  2,725
  2,987
  3,804
  4,088
  4,383
  4,690
  5,011
  5,344
  5,692
  6,055
  6,434
  6,830
  7,244
  7,676
  8,128
  8,601
  9,096
  9,615
  10,158
  10,726
  11,322
  11,947
Depreciation, amort., depletion, $m
  1,605
  1,691
  1,780
  1,873
  1,970
  2,071
  2,176
  2,285
  2,398
  2,516
  1,892
  2,019
  2,152
  2,289
  2,433
  2,582
  2,737
  2,899
  3,068
  3,244
  3,428
  3,620
  3,821
  4,031
  4,250
  4,479
  4,719
  4,970
  5,233
  5,508
Funds from operations, $m
  2,416
  2,848
  3,135
  3,434
  3,745
  4,070
  4,407
  4,758
  5,124
  5,503
  5,697
  6,107
  6,535
  6,980
  7,443
  7,926
  8,429
  8,955
  9,502
  10,074
  10,672
  11,296
  11,949
  12,632
  13,346
  14,094
  14,876
  15,696
  16,555
  17,455
Change in working capital, $m
  61
  64
  67
  70
  73
  76
  79
  82
  85
  88
  92
  95
  99
  103
  107
  112
  116
  121
  126
  132
  138
  144
  150
  157
  164
  172
  180
  188
  197
  206
Cash from operations, $m
  2,355
  2,784
  3,068
  3,364
  3,673
  3,994
  4,329
  4,677
  5,039
  5,415
  5,605
  6,012
  6,436
  6,877
  7,336
  7,814
  8,313
  8,833
  9,376
  9,943
  10,534
  11,153
  11,799
  12,475
  13,182
  13,922
  14,697
  15,508
  16,358
  17,249
Maintenance CAPEX, $m
  -777
  -859
  -944
  -1,034
  -1,127
  -1,224
  -1,325
  -1,429
  -1,539
  -1,652
  -1,770
  -1,892
  -2,019
  -2,152
  -2,289
  -2,433
  -2,582
  -2,737
  -2,899
  -3,068
  -3,244
  -3,428
  -3,620
  -3,821
  -4,031
  -4,250
  -4,479
  -4,719
  -4,970
  -5,233
New CAPEX, $m
  -817
  -854
  -893
  -931
  -970
  -1,009
  -1,049
  -1,091
  -1,134
  -1,178
  -1,224
  -1,273
  -1,323
  -1,377
  -1,433
  -1,492
  -1,554
  -1,620
  -1,689
  -1,762
  -1,839
  -1,920
  -2,006
  -2,097
  -2,192
  -2,293
  -2,399
  -2,510
  -2,628
  -2,752
Cash from investing activities, $m
  -1,594
  -1,713
  -1,837
  -1,965
  -2,097
  -2,233
  -2,374
  -2,520
  -2,673
  -2,830
  -2,994
  -3,165
  -3,342
  -3,529
  -3,722
  -3,925
  -4,136
  -4,357
  -4,588
  -4,830
  -5,083
  -5,348
  -5,626
  -5,918
  -6,223
  -6,543
  -6,878
  -7,229
  -7,598
  -7,985
Free cash flow, $m
  761
  1,071
  1,231
  1,399
  1,576
  1,761
  1,955
  2,157
  2,367
  2,585
  2,611
  2,847
  3,093
  3,348
  3,614
  3,890
  4,177
  4,476
  4,788
  5,112
  5,451
  5,804
  6,172
  6,557
  6,959
  7,380
  7,819
  8,279
  8,760
  9,264
Issuance/(repayment) of debt, $m
  -2,999
  988
  1,032
  1,076
  1,121
  1,167
  1,213
  1,261
  1,310
  1,362
  1,415
  1,471
  1,530
  1,592
  1,656
  1,725
  1,797
  1,872
  1,953
  2,037
  2,126
  2,220
  2,319
  2,424
  2,534
  2,650
  2,773
  2,902
  3,038
  3,181
Issuance/(repurchase) of shares, $m
  3,243
  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  
  244
  988
  1,032
  1,076
  1,121
  1,167
  1,213
  1,261
  1,310
  1,362
  1,415
  1,471
  1,530
  1,592
  1,656
  1,725
  1,797
  1,872
  1,953
  2,037
  2,126
  2,220
  2,319
  2,424
  2,534
  2,650
  2,773
  2,902
  3,038
  3,181
Total cash flow (excl. dividends), $m
  1,006
  2,059
  2,263
  2,476
  2,697
  2,928
  3,168
  3,418
  3,677
  3,947
  4,026
  4,319
  4,623
  4,940
  5,270
  5,615
  5,974
  6,349
  6,740
  7,149
  7,577
  8,024
  8,492
  8,981
  9,494
  10,030
  10,592
  11,181
  11,798
  12,445
Retained Cash Flow (-), $m
  -4,054
  -110
  -115
  -120
  -125
  -130
  -135
  -140
  -146
  -151
  -157
  -163
  -170
  -177
  -184
  -192
  -200
  -208
  -217
  -226
  -236
  -247
  -258
  -269
  -282
  -294
  -308
  -322
  -338
  -353
Prev. year cash balance distribution, $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 flow adjustment, $m
  46
  50
  55
  61
  66
  72
  78
  84
  90
  97
  104
  111
  118
  126
  134
  143
  151
  160
  170
  180
  190
  201
  212
  224
  236
  249
  263
  277
  291
  307
Cash available for distribution, $m
  -3,048
  1,949
  2,148
  2,356
  2,573
  2,798
  3,033
  3,277
  3,531
  3,796
  3,869
  4,155
  4,453
  4,763
  5,086
  5,423
  5,774
  6,141
  6,523
  6,923
  7,341
  7,777
  8,234
  8,712
  9,212
  9,736
  10,284
  10,859
  11,461
  12,092
Discount rate, %
  14.80
  15.54
  16.32
  17.13
  17.99
  18.89
  19.83
  20.83
  21.87
  22.96
  24.11
  25.31
  26.58
  27.91
  29.30
  30.77
  32.31
  33.92
  35.62
  37.40
  39.27
  41.23
  43.29
  45.46
  47.73
  50.12
  52.62
  55.26
  58.02
  60.92
PV of cash for distribution, $m
  -2,655
  1,460
  1,365
  1,252
  1,125
  991
  855
  722
  596
  480
  360
  277
  208
  152
  108
  74
  50
  32
  20
  12
  7
  4
  2
  1
  1
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service. The Company operates through three segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. The Airframe segment includes operations that primarily develop and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. The Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Its product offerings include mechanical/electro-mechanical actuators and controls, engineered latching and locking devices, and seat belts and safety restraints.

FINANCIAL RATIOS  of  TransDigm Group (TDG)

Valuation Ratios
P/E Ratio 31
Price to Sales 5.3
Price to Book -6.3
Price to Tangible Book
Price to Cash Flow 23.5
Price to Free Cash Flow 25.8
Growth Rates
Sales Growth Rate 10.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 61.4%
Cap. Spend. - 3 Yr. Gr. Rate 15.9%
Financial Strength
Quick Ratio 2
Current Ratio 0.1
LT Debt to Equity -386.1%
Total Debt to Equity -398.6%
Interest Coverage 2
Management Effectiveness
Return On Assets 10%
Ret/ On Assets - 3 Yr. Avg. 9.8%
Return On Total Capital 6.5%
Ret/ On T. Cap. - 3 Yr. Avg. 6.7%
Return On Equity -33.1%
Return On Equity - 3 Yr. Avg. -45.7%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 57.3%
Gross Margin - 3 Yr. Avg. 55.7%
EBITDA Margin 44.7%
EBITDA Margin - 3 Yr. Avg. 42.9%
Operating Margin 42.2%
Oper. Margin - 3 Yr. Avg. 40.6%
Pre-Tax Margin 23.9%
Pre-Tax Margin - 3 Yr. Avg. 23.9%
Net Profit Margin 17%
Net Profit Margin - 3 Yr. Avg. 17.3%
Effective Tax Rate 24.9%
Eff/ Tax Rate - 3 Yr. Avg. 26.1%
Payout Ratio 432.5%

TDG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TDG stock intrinsic value calculation we used $3504 million for the last fiscal year's total revenue generated by TransDigm Group. The default revenue input number comes from 2017 income statement of TransDigm Group. 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 TDG stock valuation model: a) initial revenue growth rate of 10.5% 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 14.8%, whose default value for TDG is calculated based on our internal credit rating of TransDigm Group, 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 TransDigm Group.
    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 TDG stock the variable cost ratio is equal to 36.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $770 million in the base year in the intrinsic value calculation for TDG 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 5.5% for TransDigm Group.

Corporate tax rate of 27% is the nominal tax rate for TransDigm Group. 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 TDG stock is equal to 1.3%.

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 TDG are equal to 221.8%.

Life of production assets of 10 years is the average useful life of capital assets used in TransDigm Group 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 TDG is equal to 16.6%. 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 - $-2951 million for TransDigm Group - 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 56 million for TransDigm Group 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 TransDigm Group at the current share price and the inputted number of shares is $20.0 billion.

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COMPANY NEWS

▶ Is TransDigm Finally Cooling Off?   [12:21PM  Motley Fool]
▶ TransDigm: Fiscal 3Q Earnings Snapshot   [07:44AM  Associated Press]
▶ Closing Bell Ringer: June 27, 2018   [Jun-27-18 04:00PM  CNBC Videos]
▶ TransDigm to Host Analyst Day in New York City   [May-30-18 09:06AM  PR Newswire]
▶ Big Pay, Little Return   [May-14-18 02:04PM  Yahoo Finance Video]
▶ [$$] CEO Pay and Performance Often Don't Match Up   [08:04AM  The Wall Street Journal]
▶ Defense Stocks Rally on Iran Deal: 4 Hot Picks   [May-11-18 09:21AM  Zacks]
▶ TransDigm Prepares for More Possible Purchases   [May-01-18 09:47PM  Motley Fool]
▶ TransDigm: Fiscal 2Q Earnings Snapshot   [09:05AM  Associated Press]
▶ Motley Fool 100 Update: What's In and What's Out   [Apr-03-18 03:48PM  Motley Fool]
▶ Goldman: 15 Most Likely M&A Targets in 2018   [Mar-23-18 10:08AM  Investopedia]
▶ [$$] New York State Fund Snubs All-Male Boards   [Mar-21-18 12:24AM  The Wall Street Journal]
▶ [$$] TransDigm to Buy Aerospace Company Extant Components for $525 Million   [Mar-19-18 01:15PM  The Wall Street Journal]
▶ TransDigm To Acquire Extant Aerospace   [09:00AM  PR Newswire]
▶ Esterline sells Boeing and Airbus supplier Kirkhill to TransDigm   [Mar-15-18 09:10PM  American City Business Journals]
▶ Transdigm: Can It Meet Value Investing Hurdles?   [Mar-06-18 02:34PM  GuruFocus.com]
▶ 3 Special Dividend Stocks You Should Know About   [Feb-20-18 08:31AM  Motley Fool]
▶ TransDigm misses Street 1Q forecasts   [07:55AM  Associated Press]
▶ Imminent 20% Plunge In Stocks Is Time To Buy: Goldman   [Jan-30-18 01:30PM  Investopedia]
▶ Alan Fournier: Building on the Lessons of David Tepper   [Jan-29-18 03:22PM  GuruFocus.com]
▶ Stocks Generating Improved Relative Strength: Transdigm   [Nov-30-17 03:00AM  Investor's Business Daily]
▶ 4 Top Aerospace Stocks to Consider Buying Now   [Nov-29-17 08:46PM  Motley Fool]
▶ The Biggest Loser: TransDigm Crash Lands on Sales Miss   [Nov-09-17 05:23PM  Barrons.com]
▶ TransDigm tops 4Q profit forecasts   [07:43AM  Associated Press]
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