Allison Transmission Valuation
| ALSN Stock | USD 119.20 0.45 0.38% |
At this time, the firm appears to be overvalued. Allison Transmission shows a prevailing Real Value of $95.38 per share. The current price of the firm is $119.2. Our model approximates the value of Allison Transmission from analyzing the firm fundamentals such as Profit Margin of 0.23 %, return on equity of 0.52, and Current Valuation of 11.98 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Allison Transmission's valuation include:
Price Book 6.3938 | Enterprise Value 12 B | Enterprise Value Ebitda 10.7466 | Price Sales 3.2348 | Forward PE 13.3156 |
Overvalued
Today
Please note that Allison Transmission's price fluctuation is very steady at this time. Calculation of the real value of Allison Transmission is based on 3 months time horizon. Increasing Allison Transmission's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Allison Transmission is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Allison Stock. However, Allison Transmission's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 119.2 | Real 95.38 | Target 59.33 | Hype 120.17 | Naive 112.14 |
The intrinsic value of Allison Transmission's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Allison Transmission's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Allison Transmission Holdings helps investors to forecast how Allison stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Allison Transmission more accurately as focusing exclusively on Allison Transmission's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Allison Transmission's intrinsic value based on its ongoing forecasts of Allison Transmission's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Allison Transmission's closest peers.
Allison Transmission Cash |
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Allison Valuation Trend
Knowing Allison Transmission's actual value is paramount for traders when making sound investment determinations. Using both Allison Transmission's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Allison Revenue by Product
Allison Transmission Total Value Analysis
Allison Transmission Holdings is presently projected to have valuation of 11.98 B with market capitalization of 10.36 B, debt of 2.52 B, and cash on hands of 180 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Allison Transmission fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
11.98 B | 10.36 B | 2.52 B | 180 M |
Allison Transmission Investor Information
About 100.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.67. Allison Transmission recorded earning per share (EPS) of 8.18. The entity last dividend was issued on the 18th of November 2024. Based on the analysis of Allison Transmission's profitability, liquidity, and operating efficiency, Allison Transmission Holdings is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.2 | 0.3028 |
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| Total Cash From Operating Activities | 667.8 M | 784 M |
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| Operating Income | 631.6 M | 919 M |
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Allison Transmission Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Allison Transmission has an asset utilization ratio of 60.4 percent. This suggests that the Company is making $0.6 for each dollar of assets. An increasing asset utilization means that Allison Transmission Holdings is more efficient with each dollar of assets it utilizes for everyday operations.Allison Transmission Ownership Allocation
Allison Transmission holds a total of 86.62 Million outstanding shares. The majority of Allison Transmission Holdings outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Allison Transmission to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Allison Transmission. Please pay attention to any change in the institutional holdings of Allison Transmission Holdings as this could imply that something significant has changed or is about to change at the company. Also note that nearly one hundred ninety thousand five hundred seventy invesors are currently shorting Allison Transmission expressing very little confidence in its future performance.Allison Transmission Profitability Analysis
The company reported the previous year's revenue of 3.04 B. Net Income was 673 M with profit before overhead, payroll, taxes, and interest of 1.3 B.Allison Transmission Past Distributions to stockholders
About Allison Transmission Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Allison Transmission Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Allison Transmission based exclusively on its fundamental and basic technical indicators. By analyzing Allison Transmission's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Allison Transmission's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Allison Transmission. We calculate exposure to Allison Transmission's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Allison Transmission's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.5 B | 1.2 B | |
| Pretax Profit Margin | 0.27 | 0.15 | |
| Operating Profit Margin | 0.30 | 0.20 | |
| Net Profit Margin | 0.22 | 0.12 | |
| Gross Profit Margin | 0.48 | 0.38 |
A single share of Allison Transmission represents a small ownership stake in the entity. As a stockholder of Allison, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Allison Transmission Dividends Analysis For Valuation
At this time, Allison Transmission's Dividends Paid is very stable compared to the past year. As of the 25th of November 2024, Dividend Paid And Capex Coverage Ratio is likely to grow to 3.96, while Dividend Yield is likely to drop 0.01. . At this time, Allison Transmission's Earnings Yield is very stable compared to the past year. As of the 25th of November 2024, Price Earnings To Growth Ratio is likely to grow to 0.25, while Retained Earnings are likely to drop (659.4 M).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 83 M | 89.1 M | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.12 | 0.12 | |
| Dividend Paid And Capex Coverage Ratio | 3.77 | 3.96 |
There are various types of dividends Allison Transmission can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Allison shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Allison Transmission Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Allison pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Allison Transmission by the value of the dividends paid out.
Allison Transmission Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 91 M | |
| Quarterly Earnings Growth Y O Y | 1.17 | |
| Forward Price Earnings | 13.3156 |
Allison Transmission Current Valuation Indicators
Allison Transmission's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Allison Transmission's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Allison Transmission, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Allison Transmission's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Allison Transmission's worth.When determining whether Allison Transmission offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Allison Transmission's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Allison Transmission Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Allison Transmission Holdings Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Allison Transmission Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Construction Machinery & Heavy Transportation Equipment 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 Allison Transmission. If investors know Allison 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 Allison Transmission 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 1.17 | Dividend Share 0.98 | Earnings Share 8.18 | Revenue Per Share 36.828 | Quarterly Revenue Growth 0.204 |
The market value of Allison Transmission is measured differently than its book value, which is the value of Allison that is recorded on the company's balance sheet. Investors also form their own opinion of Allison Transmission's value that differs from its market value or its book value, called intrinsic value, which is Allison Transmission'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 Allison Transmission's market value can be influenced by many factors that don't directly affect Allison Transmission'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 Allison Transmission's value and its price as these two are different measures arrived at by different means. Investors typically determine if Allison Transmission is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allison Transmission'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.