* Note: Prices are in Million (M) USD.
Description:
AAR Corp. The company is headquartered in Wood Dale, Illinois.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $0 M
Debt : $0 M
EBITDA : $236 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Aerospace & Defense
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 33.40
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $15 M
Average Revenue: $1,780 M
Revenue Converted To Free Cash Flow (%): 1%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 68.50%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-05-31): $2,781 M
Revenue 4 Years Ago (2021-05-31): $1,652 M
Last 5 Years Average Revenue Growth: 14%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Error: Invalid balance sheet data provided.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.22
Trailing 12-Month Earnings Per Share (EPS): $0.33
Average Earnings Per Share (EPS): $2.27
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Error: Invalid balance sheet data provided.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $76
52-Week Low: $47
Threshold Price (15% Above 52-Week Low): $53
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,711 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 14 points to above AAR Corp (AIR) stock.
Last 20 Years Avg PE 20.66, Fair Value PE 12, Industry Based PE 18, Growth Based PE 13, RCFC Based PE 0.8. Based on these 5 values, average assigned is 12.89.
Value-Trades has assined P/E value 12.89. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.27.
The fair value of AAR Corp (AIR) stock should be (12.89 x $2.27) = $29.26
