Allison Transmissions Valuation

Undetailed Valuation: Providing transmissions for mostly military sector, old company widely known,good debt ratio’s and very good earning ratios. Dcf model fair valuation: 07.03.2024:125.65 , Similar companies analysis valuation 07.03.2024: 67.17

Allison T. is a company that already grown and it is close to it’s last period of company/product time, so we should weighten similar companies analysis more around %60, according to that our final valuation has became:90.56, we found the stock when it was at 60$ but it raised up to 75 dollars before our valuation, it might not a good oportunity to buy it on the date of valuation.

Good growth rates but not sustainable, according to similar company analysis it does not have too much potential today’s price, it was worth buying a month before.

valuation is attached with excel file.

on this valuation I did not cover all details due to lack of time because of my studies: Instead of using reinvestments and roe, I used growth years of past years for future growth rate assumption. I used exit multiplies method for finding terminal value, and I assumed that amortization and reinvestment have the constant growth rate as the average growth rates of past years, in more comprehensive valuations, percentages of amortizations and reinvestments regarding sales should be used.