Allison Transmission (ALSN)
What the price implies
A reverse DCF: instead of guessing a fair value, it asks what growth today's price already assumes. How it works.
At a market value of $8.8B, Allison Transmission's free cash flow of $661M (fiscal 2025) would need to grow about -0% a year for the stock to be worth today's price. That is slower than the company has grown its free cash flow over the last 9 years.
Assumes a 9% discount rate and 3% growth after year 10, on free cash flow (operating cash flow minus capital spending) from Allison Transmission's SEC filings. Change any assumption, or model revenue and margins instead, in the Modeling tab, or try your own numbers in the reverse DCF calculator.
Fundamental grade
Five factors scored 1 to 9 from ALSN's latest numbers, weighted into one grade. It describes the business, not whether the stock is a buy.
Key numbers
Results from SEC filings
Fiscal years, from Allison Transmission's 10-K filings. The deep dive has 15+ years, quarters and every line.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.4B | $2.8B | $3.0B | $3.2B | $3.0B |
| Net income | $442M | $531M | $673M | $731M | $623M |
| Free cash flow | $460M | $490M | $659M | $658M | $661M |
| EPS (diluted) | $4.13 | $5.53 | $7.40 | $8.31 | $7.33 |
| Operating margin | 27.9% | 28.3% | 30.3% | 30.8% | 29.2% |
Where the revenue comes from
Revenue by products, fiscal 2025.
Superinvestors who own ALSN
From each investor's latest 13F filing (what a 13F shows). 7 of the investors we track hold it.
| Investor | Last quarter | Value | % of portfolio | Quarter |
|---|---|---|---|---|
| Cliff Asness AQR Capital Management |
Trimmed | $127M | 0.04% | Q2 2026 |
| Charles Brandes Brandes Investment Partners, LP |
Added | $57M | 0.40% | Q2 2026 |
| Bill Nygren Harris Associates LP |
Trimmed | $45M | 0.06% | Q2 2026 |
| Joel Greenblatt Gotham Asset Management |
Trimmed | $41M | 0.10% | Q2 2026 |
| Robert Robotti Robotti & Company |
Added | $7M | 1.1% | Q2 2026 |
| Tweedy, Browne Tweedy, Browne Company |
Added | $2M | 0.19% | Q2 2026 |
| Mario Gabelli GAMCO Investors |
Trimmed | $596,733 | 0.00% | Q2 2026 |
Insider buying
Open-market purchases by Allison Transmission's executives and directors in the last 12 months, from SEC Form 4 filings. What insider buying tells you.
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In the full deep dive
Questions
What growth does Allison Transmission's stock price imply?
At a market value of $8.8B, Allison Transmission would need its free cash flow to grow about -0% a year for 10 years (discounted at 9%, 3% growth after that) to be worth today's price. Over the last 9 years its free cash flow grew 3% a year.
Are Allison Transmission insiders buying the stock?
No open-market insider purchases of ALSN in the last 12 months, according to SEC Form 4 filings.
Which superinvestors own Allison Transmission?
7 of the superinvestors Investingly tracks hold ALSN in their latest 13F, including Cliff Asness, Charles Brandes, Bill Nygren.
Prices and ratios as of Oct 7, 2026; statements from SEC filings. Information only, not investment advice. Superinvestor holdings come from 13F filings, which are filed up to 45 days after each quarter ends.