AIR Relative Valuation
AIR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AIR is overvalued; if below, it's undervalued.
Historical Valuation
AAR Corp (AIR) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.18 is considered Undervalued compared with the five-year average of 16.70. The fair price of AAR Corp (AIR) is between 91.39 to 106.24 according to relative valuation methord. Compared to the current price of 82.64 USD , AAR Corp is Undervalued By 9.57%.
Relative Value
Fair Zone
91.39-106.24
Current Price：82.64
9.57%
Undervalued
18.44
PE
1Y
3Y
5Y
Trailing
Forward
11.21
EV/EBITDA
AAR Corp. (AIR) has a current EV/EBITDA of 11.21. The 5-year average EV/EBITDA is 9.50. The thresholds are as follows: Strongly Undervalued below 7.18, Undervalued between 7.18 and 8.34, Fairly Valued between 10.66 and 8.34, Overvalued between 10.66 and 11.82, and Strongly Overvalued above 11.82. The current Forward EV/EBITDA of 11.21 falls within the Overvalued range.
13.89
EV/EBIT
AAR Corp. (AIR) has a current EV/EBIT of 13.89. The 5-year average EV/EBIT is 12.65. The thresholds are as follows: Strongly Undervalued below 8.64, Undervalued between 8.64 and 10.64, Fairly Valued between 14.65 and 10.64, Overvalued between 14.65 and 16.65, and Strongly Overvalued above 16.65. The current Forward EV/EBIT of 13.89 falls within the Historic Trend Line -Fairly Valued range.
1.00
PS
AAR Corp. (AIR) has a current PS of 1.00. The 5-year average PS is 0.82. The thresholds are as follows: Strongly Undervalued below 0.63, Undervalued between 0.63 and 0.72, Fairly Valued between 0.91 and 0.72, Overvalued between 0.91 and 1.01, and Strongly Overvalued above 1.01. The current Forward PS of 1.00 falls within the Overvalued range.
33.79
P/OCF
AAR Corp. (AIR) has a current P/OCF of 33.79. The 5-year average P/OCF is 33.81. The thresholds are as follows: Strongly Undervalued below -86.57, Undervalued between -86.57 and -26.38, Fairly Valued between 94.00 and -26.38, Overvalued between 94.00 and 154.19, and Strongly Overvalued above 154.19. The current Forward P/OCF of 33.79 falls within the Historic Trend Line -Fairly Valued range.
55.97
P/FCF
AAR Corp. (AIR) has a current P/FCF of 55.97. The 5-year average P/FCF is 27.21. The thresholds are as follows: Strongly Undervalued below -44.69, Undervalued between -44.69 and -8.74, Fairly Valued between 63.16 and -8.74, Overvalued between 63.16 and 99.11, and Strongly Overvalued above 99.11. The current Forward P/FCF of 55.97 falls within the Historic Trend Line -Fairly Valued range.
AAR Corp (AIR) has a current Price-to-Book (P/B) ratio of 2.35. Compared to its 3-year average P/B ratio of 1.91 , the current P/B ratio is approximately 23.05% higher. Relative to its 5-year average P/B ratio of 1.72, the current P/B ratio is about 37.15% higher. AAR Corp (AIR) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -0.01%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.57% , the current FCF yield is about -100.00% lower.
2.39
P/B
Median3y
1.91
Median5y
1.72
-0.79
FCF Yield
Median3y
-0.01
Median5y
1.57
Competitors Valuation Multiple
The average P/S ratio for AIR's competitors is , providing a benchmark for relative valuation. AAR Corp Corp (AIR) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 11.77%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AIR increased by 36.73% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.72 to 4.65.
The secondary factor is the Revenue Growth, contributed 11.77%to the performance.
Overall, the performance of AIR in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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