Allison Transmission Holdings, Inc.

Allison Transmission Holdings, Inc.

ALSNยทNYSE

$119.05

+1.4%
Consumer CyclicalAuto - Parts

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium-and heavy-duty commercial vehicles, and medium-and heavy-tactical U.S. defense vehicles worldwide. It offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company markets its transmissions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. It also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its transmissions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. The company serves customers through an independent network of approximately 1,400 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.

At a Glance

Live Snapshot
Market Cap$9.87B
EPS7.4200
P/E Ratio16.04
Earnings Date08/03/2026
Allison Transmission Holdings, Inc.

Allison Transmission Holdings, Inc. Fair Value Envelope

ALSN ยท NYSE

Our analysis suggests that ALSN has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $119.05, this represents a potential HIDDEN relative to our calculated worth for Allison Transmission Holdings, Inc..

Intrinsic Value
Current Price: $119.05

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$10.4B
+ Cash & Equivalents$1.5B
Firm Value$11.9B
- Debt$2.9B
Equity Value$8.9B
/ Shares Outstanding83,228,716B
DCF Value$107
OVERVALUED BY 10%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$812.7M
$801.6M
$790.6M
$779.8M
$769.2M
$758.6M
$748.3M
$738.0M
$727.9M
$718.0M
Maintenance CapEx
-$34.5M
-$34.0M
-$33.6M
-$33.1M
-$32.7M
-$32.2M
-$31.8M
-$31.3M
-$30.9M
-$30.5M
Owner Earnings
$778.2M
$767.6M
$757.1M
$746.7M
$736.5M
$726.4M
$716.5M
$706.7M
$697.0M
$687.5M
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$720.6M
$658.1M
$601.0M
$548.9M
$501.2M
$457.8M
$418.1M
$381.8M
$348.7M
$318.4M
Terminal Value represents 52.2% of Enterprise Value