TransDigm Group Incorporated
Thesis
TransDigm is attractively priced at 11x normalized free cash flow, with expected intrinsic value growth of 20-30% per year driven by volumes, pricing, margin expansion, and capital allocation. Insiders have recently purchased significant shares, indicating confidence in the company's future performance.
Did it work?
The stock price has increased by 280.2%, which significantly exceeds the expected intrinsic value growth of 20-30% per year stated in the thesis. This substantial return indicates that the investment thesis played out successfully, likely driven by the factors mentioned such as volumes, pricing, and margin expansion. Additionally, insider purchases suggest confidence in the company's future, further supporting the thesis.
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