Allison Transmission Holdings, Inc. (ALSN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-27.7%

$80.59

vs $111.51 price

Levered DCF

$72.88

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.74

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.19×	12.86×	7.77×	7.52×	8.8×	16.46×	9.76×	9.13×
P/B	4.4×	5.69×	4.24×	4.57×	6.13×	6.5×	7.55×	8.85×
P/S	2.73×	2.92×	1.72×	1.44×	1.62×	2.36×	2.18×	2.15×
EV / EBITDA	9.41×	9.97×	6.62×	6.85×	7.51×	10.53×	7.71×	7.45×
Gross margin	48.4%	47.4%	48.4%	46.8%	47.7%	48.0%	51.7%	52.4%
Operating margin	32.3%	30.8%	30.3%	28.3%	27.9%	25.7%	33.1%	34.0%
Net margin	20.7%	22.7%	22.2%	19.2%	18.4%	14.4%	22.4%	23.6%
Current ratio	4.85×	3.04×	2.5×	1.8×	1.46×	2.03×	1.65×	1.7×
Debt / equity	1.56×	1.47×	2.04×	2.89×	3.99×	3.35×	3.25×	3.83×
Interest coverage	9.93×	11.15×	8.59×	6.64×	5.77×	3.9×	6.66×	7.63×
Dividend yield	1.1%	0.9%	1.6%	2.0%	2.1%	1.6%	1.2%	1.4%
Payout ratio	14.6%	11.9%	12.3%	15.1%	18.3%	26.1%	12.1%	12.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	33.4%	44.3%	54.6%	60.8%	69.7%	39.6%	77.3%	97.0%
Return on invested capital	13.4%	16.7%	16.5%	15.4%	12.9%	9.9%	17.3%	19.2%
Return on assets	10.2%	13.7%	13.4%	11.4%	9.9%	6.7%	13.6%	15.1%
Free cash flow yield	7.9%	7.0%	12.6%	12.3%	11.8%	9.1%	11.5%	12.6%
Earnings yield	7.6%	7.8%	12.9%	13.3%	11.4%	6.1%	10.2%	11.0%
Enterprise value	$9.6B	$11B	$7.2B	$6.3B	$6.3B	$7.1B	$8.2B	$8.1B
Net debt / EBITDA	1.39×	1.48×	1.81×	2.5×	2.86×	3.28×	2.2×	2.1×
Cash conversion cycle (days)	70	63	58	55	53	48	48	38