AAR Corp.

OVERVALUEDAIR · NYSE · Industrials
AIR·NYSE·Industrials
OVERVALUED
AAR Corp.
44.4%downside
MARKET PRICE
$110.56
FAIR PRICE
$61.51
MARGIN
$49.05
UNDERVALUEDFAIROVERVALUED
P/E RATIO
23.2x
DIV. YIELD
N/A
ROE
12.1%
MARKET CAP
$4B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

44.4%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$110.56

FAIR PRICE

$61.51

MARGIN

$49.05

UNDERVALUEDFAIROVERVALUED

P/E Ratio

23.2x

What is P/E? →

Div. Yield

N/A

ROE

12.1%

Average

Market Cap

$4B

Mid-cap

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FPI RATING

3.6/ 10

Challenges include elevated debt levels and expensive valuation relative to fundamentals.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$49.21CONSERVATIVE ENTRY
$61.51FAIR PRICE
$110.56MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$49.21

Fair price × 0.80

DISTANCE

55.5%

Price to entry level

At the current price of $110.56, AIR trades 55.5% above the conservative entry level of $49.21. This entry level represents a 20% margin of safety below the calculated fair price of $61.51 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate AIR's fair price

AAR Corp.'s fair price of $61.51 is derived from a blended model that combines DCF analysis (50%), relative valuation against Industrials peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $110.56, AIR trades 44.4% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting AIR's risk profile.

RELATIVE · 30%

Comparing AIR's valuation multiples against Industrials peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for AIR, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate AIR's fair value with your own inputs.

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FAQ

What is the fair price of AIR?+

Based on our blended model combining DCF analysis (50%), relative valuation against Industrials peers (30%), and analyst consensus (20%), the fair price for AAR Corp. is $61.51. At the current market price of $110.56, AIR trades 44.4% above its calculated fair value.

Is AIR overvalued or undervalued?+

AAR Corp. is currently overvalued based on our valuation model. The stock trades at $110.56, which is 44.4% above the fair price of $61.51. The P/E ratio of 23.2x is a key metric in the valuation.

What is the margin of safety for AIR?+

With a 20% margin of safety applied to the fair price of $61.51, the conservative entry level for AIR is $49.21. At the current market price of $110.56, the stock trades 55.5% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is AIR's fair price updated?+

We update fair price calculations for AIR daily after market close. The current fair price of $61.51 incorporates the latest market data and sector multiples.

What factors affect AIR's fair price calculation?+

AIR's fair price of $61.51 is derived from DCF analysis (50% weight), relative valuation against Industrials peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 23.2x, ROE of 12.1%.

Is AIR a good buy right now?+

At $110.56, AIR trades 44.4% above our fair value estimate of $61.51. The stock is currently overvalued. ROE stands at 12.1% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does AIR pay dividends?+

AIR does not currently pay a dividend.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.