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Relative Value

The Relative Value of one AIR stock under the Base Case scenario is 73.47 USD. Compared to the current market price of 47.27 USD, AAR Corp is Undervalued by 36%.

Relative valuation is one of two methods of placing a monetary value on a company; the other is Discounted Cash Flow valuation method. We use a combination of these two methods to calculate the Intrinsic Value of stock as accurately as possible.

AIR Relative Value
Base Case
73.47 USD
Undervaluation 36%
Relative Value
Price
Bear Case
Base Case
Bull Case

Valuation Multiples

Multiples Across Competitors

AIR Competitors Multiples
AAR Corp Competitors

Country Company Market Cap P/S P/E EV/EBITDA EV/EBIT
US
AAR Corp
NYSE:AIR
1.6B USD 0.9 24.2 12.8 17.4
US
Raytheon Technologies Corp
NYSE:RTX
139B USD 2.1 33.1 18.6 37.5
US
Lockheed Martin Corp
NYSE:LMT
117B USD 1.8 18.9 12.4 14.3
NL
Airbus SE
OTC:EADSF
86.9B USD 1.5 16.1 9.3 12.6
US
Northrop Grumman Corp
NYSE:NOC
73.3B USD 2.1 12.7 16.9 22.5
US
Boeing Co
NYSE:BA
71B USD 1.2 N/A N/A N/A

See Also

Other Stocks

FAQ

What is relative valuation?

Relative valuation is used to value companies by comparing them to other businesses based on certain metrics such as EV/Revenue, EV/EBITDA, and P/E ratios.

Relative valuation is one of two methods of placing a monetary value on a company; the other is Discounted Cash Flow valuation method. We use a combination of these two methods to calculate the Intrinsic Value of stock as accurately as possible.

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How is relative value calculated?

Our algorithm takes into account all the information about the company's valuation multiples (their historical values, how competitors are priced, and much more) and consolidates it into one single number - relative value.

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What do scenarios mean?

A stock has no absolute intrinsic value because the future is not predetermined.

Therefore, we give a range of the possible stock intrinsic values in the form of a bear, bull, and base scenarios so you can see a complete picture of the investment risks and opportunities.