SARO Valuation

StandardAero, Inc.

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28.080

-0.11(-0.390%)1D

Overview
Forecast
Valuation
Earnings

SARO Relative Valuation

SARO'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, SARO is overvalued; if below, it's undervalued.

Historical Valuation

StandardAero, Inc. (SARO) is now in the Fair zone, suggesting that its current forward PE ratio of 31.78 is considered Fairly compared with the five-year average of 34.81. The fair price of StandardAero, Inc. (SARO) is between 23.42 to 34.03 according to relative valuation methord.

Relative Value

Fair Zone

23.42-34.03

Current Price：28.08

Fair

31.78

Trailing

Forward

14.82

EV/EBITDA

StandardAero, Inc.. (SARO) has a current EV/EBITDA of 14.82. The 5-year average EV/EBITDA is 15.76. The thresholds are as follows: Strongly Undervalued below 10.86, Undervalued between 10.86 and 13.31, Fairly Valued between 18.21 and 13.31, Overvalued between 18.21 and 20.65, and Strongly Overvalued above 20.65. The current Forward EV/EBITDA of 14.82 falls within the Historic Trend Line -Fairly Valued range.

20.70

EV/EBIT

StandardAero, Inc.. (SARO) has a current EV/EBIT of 20.70. The 5-year average EV/EBIT is 22.61. The thresholds are as follows: Strongly Undervalued below 15.04, Undervalued between 15.04 and 18.82, Fairly Valued between 26.40 and 18.82, Overvalued between 26.40 and 30.18, and Strongly Overvalued above 30.18. The current Forward EV/EBIT of 20.70 falls within the Historic Trend Line -Fairly Valued range.

1.55

StandardAero, Inc.. (SARO) has a current PS of 1.55. The 5-year average PS is 1.56. The thresholds are as follows: Strongly Undervalued below 1.09, Undervalued between 1.09 and 1.33, Fairly Valued between 1.79 and 1.33, Overvalued between 1.79 and 2.02, and Strongly Overvalued above 2.02. The current Forward PS of 1.55 falls within the Historic Trend Line -Fairly Valued range.

29.67

P/OCF

StandardAero, Inc.. (SARO) has a current P/OCF of 29.67. The 5-year average P/OCF is 30.80. The thresholds are as follows: Strongly Undervalued below 20.50, Undervalued between 20.50 and 25.65, Fairly Valued between 35.95 and 25.65, Overvalued between 35.95 and 41.10, and Strongly Overvalued above 41.10. The current Forward P/OCF of 29.67 falls within the Historic Trend Line -Fairly Valued range.

47.90

P/FCF

StandardAero, Inc.. (SARO) has a current P/FCF of 47.90. The 5-year average P/FCF is 58.18. The thresholds are as follows: Strongly Undervalued below 21.86, Undervalued between 21.86 and 40.02, Fairly Valued between 76.34 and 40.02, Overvalued between 76.34 and 94.50, and Strongly Overvalued above 94.50. The current Forward P/FCF of 47.90 falls within the Historic Trend Line -Fairly Valued range.

StandardAero, Inc. (SARO) has a current Price-to-Book (P/B) ratio of 3.85. Compared to its 3-year average P/B ratio of 5.29 , the current P/B ratio is approximately -27.26% higher. Relative to its 5-year average P/B ratio of 5.29, the current P/B ratio is about -27.26% higher. StandardAero, Inc. (SARO) has a Forward Free Cash Flow (FCF) yield of approximately 0.28%. Compared to its 3-year average FCF yield of 0.37%, the current FCF yield is approximately -24.79% lower. Relative to its 5-year average FCF yield of 0.37% , the current FCF yield is about -24.79% lower.

3.85

P/B

Median3y

5.29

Median5y

5.29

0.28

FCF Yield

Median3y

0.37

Median5y

0.37

Competitors Valuation Multiple

The average P/S ratio for SARO's competitors is 1.70, providing a benchmark for relative valuation. StandardAero, Inc. Corp (SARO) exhibits a P/S ratio of 1.55, which is -8.89% above the industry average. Given its robust revenue growth of 16.18%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Food Group Co

Corporacion America Airports SA

SEACOR Marine Holdings Inc

0.58

-11.58%

143.66M

Performance Decomposition

Market capitalization of SARO decreased by 1.64% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.26 to 4.38.

The secondary factor is the Revenue Growth, contributed 16.18%to the performance.

Overall, the performance of SARO in the past 1 year is driven by Margin Expansion. Which is more sustainable.

16.18%

1.24B → 1.44B

Revenue Growth

1584.62%

0.26 → 4.38

Margin Expansion

-1602.44%

-7.96 → 119.62

P/E Change

-1.64%