AAR Corp Stock Valuation

AIR -  USA Stock  

USD 31.91  0.14  0.44%

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 09/18/2021, Free Cash Flow is likely to grow to about 101.3 M, while Enterprise Value is likely to drop slightly above 1.4 B.
AAR Corp shows a prevailing Real Value of $36.92 per share. The current price of the entity is $31.91. At this time, the entity appears to be undervalued. Our model approximates the value of AAR Corp from examining the entity fundamentals such as Operating Margin of 4.93 %, profit margin of 2.17 %, and Shares Outstanding of 35.32 M 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.

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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.
Undervalued
Today
31.91
18th of September 2021
Share
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.
36.92
Real Value
39.02
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
2.622.622.62
Details
Hype
Prediction
LowEstimated ValueHigh
29.6531.7533.85
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.070.070.08
Details
3 Analysts
Consensus
LowTarget PriceHigh
48.0050.0052.00
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

24.94 MillionShare

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 rated third in market capitalization category among related companies. Market capitalization of Aerospace & Defense industry is presently estimated at about 11.41 Billion. AAR Corp retains roughly 1.15 Billion in market capitalization claiming about 10% of stocks in Aerospace & Defense industry.
Capitalization  Revenue  Workforce  Total debt  Valuation

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 rated second in five year return category among related companies. It is rated second in beta category among related companies totaling about  2.06  of Beta per Five Year Return.

About AAR Corp Valuation

The equity 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 2021
Gross Profit275.9 M301.5 M
Profit Margin 0.022  0.0214 
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 4700 people.

AAR Corp Quarterly Enterprise Value

1.63 BillionShare

AAR Corp Dividends Analysis For Valuation

There are various types of dividends AAR Corp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of AAR Corp shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from AAR Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When AAR Corp pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of AAR Corp by the value of the dividends paid out.

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 Ratio0.86
Revenue Growth5.10%
Enterprise Value To Ebitda16.17
Enterprise Value To Revenue0.80

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.
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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.
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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 underlying business (such as 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.