Transdigm Group Incorporated Stock Market Value
| TDG Stock | USD 1,260 20.19 1.63% |
| Symbol | Transdigm |
Transdigm Group Price To Book Ratio
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Transdigm Group. If investors know Transdigm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Transdigm Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.20) | Earnings Share 25.58 | Revenue Per Share 137.37 | Quarterly Revenue Growth 0.18 | Return On Assets 0.0981 |
The market value of Transdigm Group is measured differently than its book value, which is the value of Transdigm that is recorded on the company's balance sheet. Investors also form their own opinion of Transdigm Group's value that differs from its market value or its book value, called intrinsic value, which is Transdigm Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Transdigm Group's market value can be influenced by many factors that don't directly affect Transdigm Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Transdigm Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Transdigm Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Transdigm Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Transdigm Group 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Transdigm Group's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Transdigm Group.
| 02/04/2023 |
| 11/25/2024 |
If you would invest 0.00 in Transdigm Group on February 4, 2023 and sell it all today you would earn a total of 0.00 from holding Transdigm Group Incorporated or generate 0.0% return on investment in Transdigm Group over 660 days. Transdigm Group is related to or competes with HEICO, L3Harris Technologies, Huntington Ingalls, AeroVironment, Lockheed Martin, Northrop Grumman, and General Dynamics. TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationall... More
Transdigm Group Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Transdigm Group's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Transdigm Group Incorporated upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.29 | |||
| Information Ratio | (0.05) | |||
| Maximum Drawdown | 10.06 | |||
| Value At Risk | (2.96) | |||
| Potential Upside | 2.35 |
Transdigm Group Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Transdigm Group's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Transdigm Group's standard deviation. In reality, there are many statistical measures that can use Transdigm Group historical prices to predict the future Transdigm Group's volatility.| Risk Adjusted Performance | 0.0255 | |||
| Jensen Alpha | (0.1) | |||
| Total Risk Alpha | (0.24) | |||
| Sortino Ratio | (0.04) | |||
| Treynor Ratio | 0.0326 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Transdigm Group's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Transdigm Group Backtested Returns
At this point, Transdigm Group is very steady. Transdigm Group owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0117, which indicates the firm had a 0.0117% return per unit of risk over the last 3 months. We have found thirty technical indicators for Transdigm Group Incorporated, which you can use to evaluate the volatility of the company. Please validate Transdigm Group's Risk Adjusted Performance of 0.0255, coefficient of variation of 3863.8, and Semi Deviation of 2.23 to confirm if the risk estimate we provide is consistent with the expected return of 0.0206%. The entity has a beta of 1.1, which indicates a somewhat significant risk relative to the market. Transdigm Group returns are very sensitive to returns on the market. As the market goes up or down, Transdigm Group is expected to follow. Transdigm Group right now has a risk of 1.76%. Please validate Transdigm Group downside variance, day median price, and the relationship between the treynor ratio and kurtosis , to decide if Transdigm Group will be following its existing price patterns.
Auto-correlation | 0.78 |
Good predictability
Transdigm Group Incorporated has good predictability. Overlapping area represents the amount of predictability between Transdigm Group time series from 4th of February 2023 to 31st of December 2023 and 31st of December 2023 to 25th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Transdigm Group price movement. The serial correlation of 0.78 indicates that around 78.0% of current Transdigm Group price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.78 | |
| Spearman Rank Test | 0.79 | |
| Residual Average | 0.0 | |
| Price Variance | 11.7 K |
Transdigm Group lagged returns against current returns
Autocorrelation, which is Transdigm Group stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Transdigm Group's stock expected returns. We can calculate the autocorrelation of Transdigm Group returns to help us make a trade decision. For example, suppose you find that Transdigm Group has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
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Transdigm Group regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Transdigm Group stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Transdigm Group stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Transdigm Group stock over time.
Current vs Lagged Prices |
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Transdigm Group Lagged Returns
When evaluating Transdigm Group's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Transdigm Group stock have on its future price. Transdigm Group autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Transdigm Group autocorrelation shows the relationship between Transdigm Group stock current value and its past values and can show if there is a momentum factor associated with investing in Transdigm Group Incorporated.
Regressed Prices |
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Currently Active Assets on Macroaxis
When determining whether Transdigm Group is a strong investment it is important to analyze Transdigm Group's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Transdigm Group's future performance. For an informed investment choice regarding Transdigm Stock, refer to the following important reports:Check out Transdigm Group Correlation, Transdigm Group Volatility and Transdigm Group Alpha and Beta module to complement your research on Transdigm Group. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Transdigm Group technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.