Allison Transmission Intrinsic Value Calculation – Is Allison Transmission Holdings the Undervalued Gem of the Market?

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Allison Transmission ($NYSE:ALSN) Holdings (ALSN) is an American manufacturer of commercial-duty automatic transmissions and hybrid propulsion systems used in buses, recreational vehicles, trucks, military vehicles and other specialty applications. Could this company be a hidden gem in the undervalued market? This reflects the company’s ability to develop and manufacture reliable products that meet customer needs. Investors have become increasingly interested in ALSN as a potential undervalued stock due to its strong financial performance and attractive valuation.

Additionally, the stock appears attractively priced when compared to its own historical valuations. Allison Transmission Holdings is also well positioned to capitalize on the growing demand for electric vehicles and other green technologies through its advanced hybrid propulsion systems. This is further supported by their strong balance sheet and robust cash flow. With a strong track record of financial performance and attractive valuation, it certainly appears to be a stock worth considering for investors seeking undervalued stocks with robust fundamentals.

Stock Price

On Friday, its stock opened at $51.2 and closed at $51.9, up by 1.2% from the previous closing price of $51.2. This jump in price could indicate that investors are starting to notice the potential of this company’s services and products, and thus are showing more willingness to invest in it. ALLISON has a solid track record of providing transmission solutions for various commercial vehicle applications in the automotive industry. Its wide range of services and products have been widely accepted by customers around the world, giving it a strong foothold in the market. The company has also been consistently profitable for the past several years, which is also a testament to the quality and reliability of its services and products.

This indicates that the company is financially sound and is committed to rewarding shareholders with steady returns on their investments. Considering its track record, strong financials and attractive dividend yield, it is not surprising that investors are beginning to take notice of ALLISON and are showing more willingness to invest in it. Therefore, it is possible that ALLISON is indeed an undervalued gem in the market, and investors should look into it further before making a decision. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Allison Transmission. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Allison Transmission. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Allison Transmission. More…

Key Ratios Snapshot

Some of the financial key ratios for Allison Transmission are shown below. More…

Analysis – Allison Transmission Intrinsic Value Calculation

After examining the fundamentals of the company, our proprietary Valuation Line calculations indicate that the fair value of ALLISON TRANSMISSION’s stock is around $55.5. Currently, the stock is trading at $51.9, making it an attractive investment as it is undervalued by 6.5%. More…

Peers

With headquarters in Indianapolis, Indiana, Allison Transmission has approximately 2,700 employees and over 70 facilities worldwide. The company’s products are used in a variety of applications, including on-highway trucks (light-, medium- and heavy-duty), buses, motor homes, off-highway vehicles and equipment (construction, agricultural and mining), and military vehicles. Allison Transmission also has a growing global customer base in the energy sector, including gas compression and renewable energy (wind and solar). The company’s primary competitors are XL Fleet Corp, Tata Motors Ltd, Electrameccanica Vehicles Corp Ltd.

– XL Fleet Corp ($NYSE:XL)

Founded in 2001, Fleet Corp is a provider of enterprise software solutions. The company’s products are used by organizations in a variety of industries for asset management, compliance, and tracking purposes. Fleet Corp has a market cap of 111.42M as of 2022 and a return on equity of -9.42%. The company’s products are used by organizations in a variety of industries for asset management, compliance, and tracking purposes.

– Tata Motors Ltd ($NYSE:TTM)

Tata Motors Ltd. is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India. Part of the Tata Group, it was formerly known as Tata Engineering and Locomotive Company (TELCO). Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It has assembly and manufacturing plants in Jamshedpur, Lucknow, Pantnagar, Guwahati, Dharwad, Sanand, Pune and Dhenkanal.

– Electrameccanica Vehicles Corp Ltd ($NASDAQ:SOLO)

Electrameccanica Vehicles Corp Ltd is a Canadian electric vehicle manufacturer based in Vancouver, British Columbia. The company’s first product is the Solo, a single-seat electric vehicle designed for commuting and errands. The Solo uses a 20 kWh lithium-ion battery and has a range of 160 km (100 mi). It is capable of reaching speeds of up to 130 km/h (81 mph).

Summary

Allison Transmission Holdings (ALSN) is an attractive opportunity for investors seeking to capitalize on an undervalued asset. The company has a strong balance sheet, with total cash and liquid assets totaling close to $1 billion. Despite its potential, short interest in Allison Transmission has been steadily increasing over the last few months. Investors should take caution and further analyze the company before investing.