AAR Corp. (AIR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-141.5%

-$44.05

vs $106.16 price

Levered DCF

-$0.66

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.67

Safe zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	22.54×	175.46×	54.61×	19.57×	22.02×	42.14×	28.28×	136.77×
P/B	2.47×	1.8×	2.09×	1.58×	1.66×	1.53×	0.77×	1.15×
P/S	1.27×	0.79×	1.07×	0.87×	0.94×	0.9×	0.34×	0.51×
EV / EBITDA	14.95×	18.51×	24.33×	12.33×	12.62×	22.32×	11.04×	8.14×
Gross margin	18.8%	19.0%	19.1%	18.6%	17.2%	16.7%	13.0%	16.1%
Operating margin	8.2%	6.7%	5.6%	6.7%	5.9%	5.2%	2.0%	4.8%
Net margin	5.7%	0.4%	2.0%	4.5%	4.3%	2.2%	1.2%	0.4%
Current ratio	2.84×	2.72×	2.98×	3.12×	2.89×	2.78×	3.76×	2.66×
Debt / equity	0.58×	0.86×	0.9×	0.29×	0.15×	0.2×	0.74×	0.16×
Interest coverage	3.84×	2.46×	2.99×	10.98×	44.54×	17.04×	4.44×	10.35×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	1.5%	1.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.3%	43.1%	140.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	11.0%	1.0%	3.9%	8.2%	7.6%	3.7%	2.7%	0.8%
Return on invested capital	7.5%	2.6%	4.5%	6.7%	6.5%	5.1%	2.0%	8.0%
Return on assets	5.6%	0.4%	1.7%	4.9%	5.0%	2.3%	1.2%	0.5%
Free cash flow yield	0.8%	0.1%	0.6%	-0.4%	3.4%	6.3%	-8.5%	4.8%
Earnings yield	4.5%	0.6%	1.9%	5.2%	4.6%	2.4%	3.5%	0.7%
Enterprise value	$5.1B	$3.1B	$3.5B	$2B	$1.8B	$1.6B	$965M	$1.2B
Net debt / EBITDA	2.66×	5.61×	6.87×	1.55×	0.71×	1.94×	3.05×	0.85×
Cash conversion cycle (days)	152	147	161	154	153	162	126	117