Latest Ratios: P/E Ratio 15.6x · EV/EBITDA 10.0x · ROE 35.4%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.5B | $8.3B | $9.5B | $5.3B | $4.0B | $3.9B | $4.9B | $5.9B | $5.9B | $6.5B | $5.7B |
| Enterprise Value | $10.9B | $9.7B | $11.1B | $7.2B | $6.3B | $6.3B | $7.1B | $8.3B | $8.2B | $8.8B | $7.7B |
| P/E Ratio → | 15.58 | 13.36 | 13.00 | 7.86 | 7.52 | 8.80 | 16.46 | 9.84 | 9.19 | 12.82 | 26.53 |
| P/S Ratio | 3.15 | 2.76 | 2.95 | 1.74 | 1.44 | 1.62 | 2.36 | 2.20 | 2.16 | 2.86 | 3.10 |
| P/B Ratio | 5.20 | 4.46 | 5.76 | 4.29 | 4.57 | 6.13 | 6.50 | 7.61 | 8.91 | 9.38 | 5.28 |
| P/FCF | 14.62 | 12.82 | 14.45 | 8.03 | 8.15 | 8.46 | 11.02 | 8.80 | 7.96 | 11.39 | 10.96 |
| P/OCF | 11.52 | 10.10 | 11.87 | 6.75 | 6.08 | 6.13 | 8.76 | 7.02 | 7.01 | 9.82 | 9.65 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.24 | 3.46 | 2.39 | 2.27 | 2.62 | 3.43 | 3.07 | 3.01 | 3.89 | 4.16 |
| EV / EBITDA | 9.95 | 8.89 | 10.02 | 6.75 | 6.69 | 7.68 | 10.47 | 7.83 | 7.51 | 10.71 | 12.19 |
| EV / EBIT | 11.22 | 10.81 | 11.31 | 7.76 | 8.24 | 9.14 | 13.47 | 9.19 | 8.81 | 13.98 | 17.32 |
| EV / FCF | — | 15.02 | 16.94 | 10.99 | 12.83 | 13.67 | 16.01 | 12.28 | 11.07 | 15.53 | 14.72 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.4% | 48.4% | 47.4% | 48.4% | 46.8% | 47.7% | 48.0% | 51.7% | 52.4% | 50.0% | 47.0% |
| Operating Margin | 32.3% | 32.3% | 30.8% | 30.3% | 28.3% | 27.9% | 25.7% | 33.1% | 34.0% | 28.8% | 24.6% |
| Net Profit Margin | 20.7% | 20.7% | 22.7% | 22.2% | 19.2% | 18.4% | 14.4% | 22.4% | 23.6% | 22.3% | 11.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 35.4% | 35.4% | 50.7% | 63.9% | 70.4% | 63.6% | 38.9% | 83.9% | 94.8% | 57.0% | 19.0% |
| ROA | 10.9% | 10.9% | 14.1% | 13.9% | 11.6% | 9.9% | 6.7% | 13.9% | 15.1% | 12.0% | 5.0% |
| ROIC | 22.2% | 22.2% | 23.0% | 21.7% | 19.0% | 16.7% | 13.1% | 22.0% | 23.1% | 16.1% | 10.7% |
| ROCE | 18.6% | 18.6% | 21.2% | 21.1% | 19.1% | 16.5% | 13.1% | 22.7% | 24.3% | 17.0% | 11.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.56 | 1.56 | 1.47 | 2.03 | 2.89 | 3.99 | 3.35 | 3.25 | 3.83 | 3.70 | 2.00 |
| Debt / EBITDA | 2.66 | 2.66 | 2.17 | 2.34 | 2.69 | 3.09 | 3.72 | 2.40 | 2.32 | 3.10 | 3.44 |
| Net Debt / Equity | — | 0.76 | 0.99 | 1.58 | 2.62 | 3.79 | 2.94 | 3.01 | 3.48 | 3.41 | 1.81 |
| Net Debt / EBITDA | 1.30 | 1.30 | 1.47 | 1.82 | 2.44 | 2.93 | 3.26 | 2.22 | 2.11 | 2.86 | 3.11 |
| Debt / FCF | — | 2.20 | 2.49 | 2.96 | 4.68 | 5.22 | 4.99 | 3.48 | 3.11 | 4.14 | 3.76 |
| Interest Coverage | 9.20 | 9.20 | 11.08 | 8.73 | 6.47 | 5.93 | 3.87 | 6.73 | 7.65 | 6.12 | 4.36 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.85 | 4.85 | 3.04 | 2.50 | 1.80 | 1.46 | 2.03 | 1.65 | 1.70 | 1.52 | 1.60 |
| Quick Ratio | 4.17 | 4.17 | 2.42 | 1.94 | 1.34 | 1.02 | 1.54 | 1.17 | 1.30 | 1.15 | 1.23 |
| Cash Ratio | 3.25 | 3.25 | 1.54 | 1.11 | 0.48 | 0.28 | 0.83 | 0.46 | 0.54 | 0.48 | 0.60 |
| Asset Turnover | — | 0.49 | 0.60 | 0.60 | 0.59 | 0.54 | 0.46 | 0.61 | 0.64 | 0.54 | 0.44 |
| Inventory Turnover | 4.92 | 4.92 | 5.38 | 5.67 | 6.57 | 6.16 | 5.98 | 6.55 | 7.59 | 7.34 | 7.77 |
| Days Sales Outstanding | — | 40.38 | 40.74 | 42.81 | 47.85 | 45.74 | 39.99 | 34.23 | 37.54 | 40.99 | 39.05 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.1% | 0.9% | 1.6% | 2.0% | 2.1% | 1.6% | 1.2% | 1.4% | 1.4% | 1.8% |
| Payout Ratio | 14.6% | 14.6% | 11.9% | 12.3% | 15.1% | 18.3% | 26.1% | 12.1% | 12.5% | 17.7% | 46.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.4% | 7.5% | 7.7% | 12.7% | 13.3% | 11.4% | 6.1% | 10.2% | 10.9% | 7.8% | 3.8% |
| FCF Yield | 6.8% | 7.8% | 6.9% | 12.5% | 12.3% | 11.8% | 9.1% | 11.4% | 12.6% | 8.8% | 9.1% |
| Buyback Yield | 3.5% | 3.9% | 2.7% | 5.1% | 7.0% | 13.2% | 4.6% | 6.6% | 10.4% | 13.7% | 4.5% |
| Total Shareholder Yield | 4.4% | 5.0% | 3.6% | 6.7% | 9.0% | 15.3% | 6.2% | 7.8% | 11.7% | 15.1% | 6.3% |
| Shares Outstanding | — | $85M | $88M | $91M | $96M | $107M | $114M | $123M | $134M | $150M | $169M |
Cyclicality and Electrification Transition
According to current market data, ALSN trades at a forward P/E of 13.52, which, when compared to the broader industrial peer group, suggests investors are applying a terminal value discount due to concerns regarding the long-term viability of ICE-based vocational transmissions in an electrified future.
The current P/E multiple appears to price in a conservative growth outlook, potentially ignoring the company's specialized moat in vocational duty cycles. While the PEG ratio of 0.72 indicates the stock may be undervalued relative to its growth potential, this valuation gap warrants caution as it may reflect market skepticism regarding the company's ability to maintain its high margins during the transition to eGen Power.
Based on reported figures, ALSN's ROIC has trended downward from 6.1% in 2024Q2 to 3.2% in 2026Q1, indicating that the company is currently struggling to compound returns on invested capital as it navigates a period of heightened R&D spending and cyclical revenue volatility.
The compression in ROIC suggests that the capital intensity required to develop next-generation propulsion technology is currently outpacing the incremental returns generated by the core business. Investors should monitor whether this trend reverses as the company scales its electric axle offerings or if the shift to power electronics permanently lowers the company's historical return profile.
As reported in recent financial statements, the cash conversion cycle has fluctuated significantly, reaching 73 days in 2025Q4, which suggests that the company's ability to manage inventory and supplier payment terms is becoming increasingly sensitive to OEM inventory destocking patterns and broader supply chain constraints.
The rise in DIO from 61 days in 2024Q1 to 77 days in 2025Q4 indicates a potential buildup of inventory that may be masking underlying weakness in new unit demand. This trend warrants further investigation, as an extended CCC often precedes margin pressure if the company is forced to offer pricing concessions to clear excess stock.
According to quarterly filings, ALSN maintains an interest coverage ratio of 3.20 as of 2026Q1, which, while lower than the historical peaks seen in 2024, still suggests that the company retains sufficient operational cash flow to service its debt obligations despite the current cyclical downturn.
The recent increase in the D/E ratio to 2.24 in 2026Q1 represents a departure from the company's previous deleveraging trend, signaling a more aggressive use of the balance sheet. While the current coverage remains adequate, any further deterioration in operating margins could limit management's flexibility to continue its historical share repurchase programs.
Investors frequently misapply standard P/E multiples to ALSN, failing to account for the company's high non-cash depreciation and amortization charges, which often obscure the true cash-generating power of its vocational transmission business model compared to traditional automotive parts manufacturers.
Because ALSN operates with a high fixed-cost base and significant R&D capitalization, the P/E ratio often understates the company's actual earning power. Analysts should instead prioritize P/FCF or EV/EBITDA, as these metrics better capture the company's ability to generate surplus cash that can be deployed toward dividends and buybacks regardless of accounting-driven earnings volatility.
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Quick answers to the most common questions about buying ALSN stock.
Allison Transmission Holdings, Inc.'s current P/E ratio is 15.6x. The historical average is 15.5x. This places it at the 64th percentile of its historical range.
Allison Transmission Holdings, Inc.'s current EV/EBITDA is 10.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
Allison Transmission Holdings, Inc.'s return on equity (ROE) is 35.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 45.3%.
Based on historical data, Allison Transmission Holdings, Inc. is trading at a P/E of 15.6x. This is at the 64th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Allison Transmission Holdings, Inc.'s current dividend yield is 0.94% with a payout ratio of 14.6%.
Allison Transmission Holdings, Inc. has 48.4% gross margin and 32.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Allison Transmission Holdings, Inc.'s Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.