What is Allison Transmission Holdings Inc worth?
With the base-case assumptions below, a discounted cash flow model on Allison Transmission Holdings Inc's reported free cash flow gives $123.05 per share. The share price was $125.56 on November 10, 2026, 2% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 2.5% | 10.0% | $61.11 | -51% |
| Base | 7.5% | 9.0% | $123.05 | -2% |
| Bull | 12.5% | 8.0% | $246.53 | +96% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $169.08 | $183.17 | $200.39 | $221.92 | $249.60 |
| 8.0% | $134.70 | $143.84 | $154.64 | $167.59 | $183.43 |
| 9.0% | $109.59 | $115.84 | $123.05 | $131.46 | $141.40 |
| 10.0% | $90.47 | $94.92 | $99.95 | $105.71 | $112.35 |
| 11.0% | $75.45 | $78.71 | $82.35 | $86.44 | $91.09 |
Where the presets come from
Base: years 1 to 5 grow at Allison Transmission Holdings Inc's revenue growth rate over the last 5 fiscal years (7.7% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions