What is TransDigm Group Incorporated (TDG)'s PEG ratio?

TransDigm Group Incorporated (TDG) has a PEG ratio of 1.76 (Fairly Valued), based on a PE ratio of 37.6 and expected EPS growth of 21.3% (5-Year EPS CAGR).

Is TDG undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 1.76, TransDigm Group Incorporated (TDG) screens as "Fairly Valued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/TDG.

TransDigm Group Incorporated (TDG) PEG Ratio

Fairly Valued

PE ratio relative to earnings growth — is the valuation justified?

1.76

PEG Ratio

1.76

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$1237.82

TTM EPS

$32.96

P/E Ratio

37.56

Growth Rate

21.3%

5-Year EPS CAGR

Sector

Industrials

Aerospace & Defense

Calculated

8/18/2026

6:26:04 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

3.03

25th Percentile

2.95

75th Percentile

3.30

TDG PEG (1.76) vs Industry Median (3.03): 42% discount

Symbol	Company	PEG	P/E	Growth	vs TDG
NOC	Northrop Grumman Corporation	2.05	18.1	8.8%	+16%
HEI-A	HEICO Corporation	2.95	48.3	16.4%	+68%
RTX	RTX Corporation	3.11	39.0	12.6%	+76%
GD	General Dynamics Corporation	3.30	23.8	7.2%	+88%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

TransDigm Group Incorporated (TDG) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on TDG

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TransDigm Group Incorporated (TDG) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on TDG

Compare with peers

Explore