For the past six months, and probably longer than that, investors and the financial media have been asking themselves or have been asked whether the market is overvalued. The market has marched higher and higher and the S&P 500 is now up 29% for the year. There also seems to be signs of a return of ridiculously-priced IPOs, mostly dot coms and bio-tech stocks in my opinion. People have explained why the market is overvalued by citing Schiller's CAPE ratio or that abnormally high profit margins will eventually revert to the mean.
Towards the beginning of this year I put together a research report on TransDigm (TDG) for my clients. TransDigm is an exceptional company that operates in the aerospace parts industry and is unique among virtually all other public companies in that operates on a private equity business model. I've recently updated the report and you can read the bulk of it by visiting Beyond Proxy.
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