Allison Transmission Holdings, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $805M FY2026 guided adjusted free cash flow base (management guidance $745-865M, midpoint, post Jan-2026 $2.73B Dana Off-Highway acquisition); 5% growth years 2-5 (synergy ramp toward $120M targeted run-rate plus off-highway/defense diversification), 3% years 6-10; 9% discount rate; 2.5% terminal growth; ~$3.9B net debt (~$4.2B total debt less ~$0.3B cash, post-acquisition financing); 82.58M diluted shares.

Reasoning: Allison has a dominant, high-margin, highly cash-generative position in North American commercial-vehicle automatic transmissions with real switching-cost moats (OEM integration, service network), now scaled and diversified via the Dana Off-Highway deal, making a multi-stage FCF DCF the natural fit.