Allison Transmission Holdings, Inc. (ALSN) Valuation — DCF, Graham & Comparables

Allison Transmission Holdings, Inc. (ALSN) — Price $107.19 (closing price, October 28, 2026) — Consumer Cyclical — Auto - Parts — NYSE

Latest reported results:

Valuation dashboard for Allison Transmission Holdings, Inc. (ALSN) with P/E 17.04, P/B 4.58, EV/EBITDA 11.59 and dividend yield 1.04%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Consumer Cyclical companies.

Allison Transmission Holdings, Inc. (ALSN), along with its affiliates, specializes in the global development, manufacturing, and sale of fully-automatic transmissions. These robust systems are engineered for both medium and heavy-duty commercial vehicles, as well as medium and heavy-tactical defense vehicles utilized by the U.S. military. The company's diverse product portfolio serves a broad spectrum of applications.

Analysis Summary

Allison Transmission Holdings, Inc. reported revenue of $3.01B in the most recent fiscal year, growing at a 5-year CAGR of 7.7%. Net income reached $623.0M, with a 15.8% 5-year CAGR.

Trailing-twelve-month margins: gross margin 39.5%, operating margin 25.0%, net margin 14.3%.

At $107.19 (closing price, October 28, 2026), ALSN trades at a P/E of 17.04 and an ROE of 27.88%. Market capitalisation stands at $8.9B.

Balance sheet quality for ALSN: current ratio of 4.9. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio17.04
Price / Book4.58
EV / EBITDA11.59
Dividend Yield1.04%

Valuation Models

DCF Fair Value$83.10
vs Current Price-22.5%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
ALSNAllison Transmission Holdings, Inc.$8.9B17.044.5827.9%
APTVAptiv PLC$9.2B41.981.072.4%
BWABorgWarner Inc.$11.4B27.552.027.4%
TKRThe Timken Company$7.9B30.802.608.1%
DANDana Incorporated$2.7B1.57-16.2%

Price

Price$107.19 (closing price, October 28, 2026)
Market Cap$8.9B
ExchangeNYSE
CountryUS

Profitability

Return on Equity27.88%
Return on Invested Capital9.56%
Return on Assets6.07%
Gross Margin39.53%
Operating Margin24.97%
Net Margin14.31%

Related companies: APTV · BWA · TKR · DAN

Explore sector: Consumer Cyclical · Auto - Parts

More sections of ALSN: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

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