Allison Transmission's Sub-15x Forward P/E and 0.83 PEG Outshine Ferrari
Allison Transmission holds a Zacks Rank #2 with forward P/E 14.41, PEG 0.83 and P/B 5.63, earning a Value grade of A. Ferrari carries a Zacks Rank #3 with forward P/E 32.32, PEG 3.60 and P/B 19.16, earning a Value grade of D.
1. Zacks Rank and Value Grades
Allison Transmission carries a Zacks Rank of #2 (Buy) and a Style Scores Value grade of A, reflecting strong estimate revisions and undervaluation signals. Ferrari holds a Zacks Rank of #3 (Hold) with a Value grade of D, indicating less favorable valuation metrics for value investors.
2. Forward P/E and PEG Comparison
ALSN’s forward P/E ratio stands at 14.41 compared to Ferrari’s 32.32, while Allison’s PEG ratio of 0.83 contrasts with Ferrari’s 3.60. These figures suggest a more attractive earnings outlook relative to growth expectations for Allison Transmission.
3. P/B Ratios and Valuation Implications
With a P/B ratio of 5.63 versus Ferrari’s 19.16, Allison Transmission trades at a lower multiple of book value. This disparity reinforces ALSN’s positioning as the superior value option within the automotive original equipment sector.