AAR Corp Stock Valuation

AIR
 Stock
  

USD 47.13  0.70  1.46%   

How much is AAR Corp worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as AAR Corp, is its stock price multiplied by the total number of shares outstanding, calculating AAR Corp's enterprise value requires a different approach. It uses AAR Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 08/18/2022, Free Cash Flow is likely to grow to about 62.5 M, while Enterprise Value is likely to drop slightly above 1.8 B.
AAR Corp shows a prevailing Real Value of $43.66 per share. The current price of the entity is $47.13. At this time, the entity appears to be overvalued. Our model approximates the value of AAR Corp from examining the entity fundamentals such as Shares Outstanding of 35.47 M, profit margin of 4.32 %, and Operating Margin of 7.93 % as well as evaluating its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and selling overvalued instruments since, in the future, asset prices and their ongoing real values will blend.
  
AAR Corp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as AAR Corp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Overvalued
Today 47.13
Please note that AAR Corp's price fluctuation is very steady at this time. Calculation of the real value of AAR Corp is based on 3 months time horizon. Increasing AAR Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for AAR Corp is useful when determining the fair value of the AAR Corp stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of AAR Corp. Since AAR Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of AAR Corp Stock. However, AAR Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
43.66
Real Value
51.84
Upside
Estimating the potential upside or downside of AAR Corp helps investors to forecast how AAR Corp stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of AAR Corp more accurately as focusing exclusively on AAR Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
2.502.502.50
Details
Hype
Prediction
LowEstimated ValueHigh
44.8147.3149.81
Details
Naive
Forecast
LowNext ValueHigh
47.3749.8752.37
Details
2 Analysts
Consensus
LowTarget PriceHigh
45.0049.5053.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use AAR Corp's intrinsic value based on its ongoing forecasts of AAR Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against AAR Corp's closest peers. When choosing an evaluation method for AAR Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

AAR Corp Investments

23.62 Million

AAR Corp Valuation Drivers Correlation

Many accounts on the financial statements of AAR Corp are highly interrelated and sometimes correlated. Consequently, when conducting AAR Corp's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of AAR Corp
Click cells to compare fundamentals

AAR Corp Valuation Trend

Knowing AAR Corp's actual value is paramount for traders to make sound investment determinations. AAR Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of AAR Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both AAR Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

AAR Corp Market Cap

AAR Corp is number one stock in market capitalization category among related companies. Market capitalization of Aerospace & Defense industry is presently estimated at about 1.03 Trillion. AAR Corp adds roughly 1.67 Billion in market capitalization claiming only tiny portion of stocks in Aerospace & Defense industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

AAR Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining AAR Corp's current stock value. Our valuation model uses many indicators to compare AAR Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across AAR Corp competition to find correlations between indicators driving AAR Corp's intrinsic value. More Info.
AAR Corp is number one stock in beta category among related companies. It is number one stock in five year return category among related companies reporting about  0.55  of Five Year Return per Beta. The ratio of Beta to Five Year Return for AAR Corp is roughly  1.83 . Comparative valuation analysis is a catch-all model that can be used if you cannot value AAR Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AAR Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the AAR Corp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates AAR Corp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in AAR Corp and how it compares across the competition.

About AAR Corp Valuation

The stock valuation mechanism determines the current worth of AAR Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of AAR Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of AAR Corp based exclusively on its fundamental and basic technical indicators. By analyzing AAR Corp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of AAR Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of AAR Corp. We calculate exposure to AAR Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to AAR Corp's related companies.
Last ReportedProjected for 2022
Gross Profit313.2 M321.5 M
Profit Margin 0.043  0.0464 
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois. AAR Corp operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 4500 people.

AAR Corp Quarterly Enterprise Value

1.82 Billion

AAR Corp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as AAR Corp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.99
Earnings Quarterly Growth70.70%
Revenue Growth8.80%
Enterprise Value To Ebitda11.54
Earnings Growth68.40%
Enterprise Value To Revenue0.92

AAR Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of AAR Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value AAR Corp we look at many different elements of the entity such as AAR Corp's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. AAR Corp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final AAR Corp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as AAR Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use AAR Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes AAR Corp's worth.
Please continue to Trending Equities. Note that the AAR Corp information on this page should be used as a complementary analysis to other AAR Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Complementary Tools for AAR Corp Stock analysis

When running AAR Corp price analysis, check to measure AAR Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AAR Corp is operating at the current time. Most of AAR Corp's value examination focuses on studying past and present price action to predict the probability of AAR Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move AAR Corp's price. Additionally, you may evaluate how the addition of AAR Corp to your portfolios can decrease your overall portfolio volatility.
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Is AAR Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AAR Corp. If investors know AAR Corp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AAR Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of AAR Corp is measured differently than its book value, which is the value of AAR Corp that is recorded on the company's balance sheet. Investors also form their own opinion of AAR Corp's value that differs from its market value or its book value, called intrinsic value, which is AAR Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AAR Corp's market value can be influenced by many factors that don't directly affect AAR Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AAR Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine AAR Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AAR Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.