TDG
TransDigm Group
Hybrid Industrial
★ Quality 62/100Price today
$1,162
This company value is already calculated
We know what it is worth from its audited numbers, and whether it trades above or below that today. Create your free account to see it.
See what it is worthcharlieapp.co
A monopoly position
This company has a competitive advantage so strong that its rivals find it practically impossible to replicate.
What this business is made of
The business
Sells the $2,000 valve no airline can recertify in 30 years.
TransDigm makes proprietary aircraft components —pumps, valves, actuators, electrical systems— where it's the sole supplier on ~80% of its products. The real business is the aftermarket: selling replacement parts at premium prices over the decades each plane flies. FY2025: $8.8B in revenue, 60% gross margin, $1.8B in FCF.
Every part is FAA-certified for a specific aircraft model; switching suppliers requires recertification, something no airline wants to do over a $2,000 valve. That gives it real pricing power, year after year. The aftermarket is the gift that keeps giving: once the part is on the plane, they call the shots for 30 years.
Revenue history
From $4.8B to $8.8B in 4 years — nearly 1.8x its size. Selling more and more is the base of everything else.
Where each $100 of sales goes
Revenue $8.8B · FY2025
Of every $100 in sales, $76 goes to costs and operations; $24 is left as net profit (24% margin).
Catalysts and risks
Global air traffic already topped pre-2019 levels; more flight hours means more demand for high-margin replacement parts.
Steady acquisitions at disciplined multiples —track record of raising prices and margins on what it buys.
FY2025 closed with $2.8B in cash and $1.8B in FCF; ammo for special dividends or more M&A.
$29.2B in debt against $2.8B in cash. The model leverages aggressively; high rates bite.
The Pentagon and Congress have already investigated its pricing on defense contracts. The regulatory risk is real.
The strategy depends on continuing to buy companies; if cheap targets run out, the CAGR deflates.
Charlie's note
“A toll booth dressed up as a manufacturer: they charge for every plane that flies and nobody can dodge them. The debt keeps me up at night, but it's the kind of business you understand in five minutes and admire for five decades.”
Analysis · June 2026
Want to follow TransDigm Group?
We do not calculate a value here: TransDigm Group does not generate cash flows you can project, and putting a number on it would be making it up. What you can do is follow it and tell us the price you care about — we will email you when it gets there.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.