TransDigm Group Incorporated (TDG)

The Base case represents the modal expected trajectory where TransDigm delivers 100-150 bps organic margin expansion on constant mix, absorbs acquisition dilution over 24 months, and compounds earnings in line with management guidance and post-earnings consensus estimates.

• Multi-year revenue compounding in line with commercial aftermarket flight-hour recovery and defense budget growth
• Operating margins expanding steadily from FY2026 through FY2030 supported by constant-mix productivity gains
• Adjusted EPS compounding at a steady double-digit pace through FY2031 anchored by organic margin expansion
• Terminal valuation multiple sustained in line with historical median contractor benchmarks
• Cost of equity of 9.10%