Heico Corporation (HEI) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Heico Corporation stock $228, price $327, that is 30.4% below the price, quality 64 out of 100. Rating: overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $122.44 – $374.67 · fair‑value band $139.74 – $296.08 · the $327.33 price screens above the $227.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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HEICO Corporation provides aerospace, defense, and electronic related products and services in the United States and internationally.
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Its Flight Support Group segment offers jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components and assemblies.
This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and commercial aircraft surfaces, as well as for avionics and navigation systems, subcomponents, and other military aircraft instruments.
The company's Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio frequency (RF) interference shielding and suppression filters; power electronics; power conversion and interface products; interconnection devices; and underwater locator and emergency locator transmission beacons.
This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; environment connectivity products and molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; radiation assurance, embedded computing, and silicone solutions; test sockets and adapters; and electronic components and rotary joint assemblies.
The company was incorporated in 1957 and is headquartered in Hollywood, Florida.
Stock analysis
Heico Corporation (HEI) currently trades at $327.33, while our model-based Fair Value estimate is $227.76, 30% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $133.18 per share, and 0 of the 24 models we run sit above the $327.33 price.
Bear case: the Economic Profit group reads lowest at $43.65, and 24 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $139.74 (bear) to $296.08 (bull), the price of $327.33 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Heico Corporation reported revenue of $4.5B in FY2025 versus $1.9B in FY2021, a compound +24.5%/yr. Reported net income was $690M in FY2025, compounding +20.3%/yr from FY2021.
Key figures
Market cap $46.2B Large · P/E ratio 50.9 · P/S ratio 8.93 · EPS (TTM) $6.00 · Dividend yield 0.1% · Net margin 16.4% · Return on equity 17.7% · Return on assets (EBIT) 11.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 85 out of 100 (high confidence).
What moves the price
The share trades about 13% below its 52-week high and 25% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −27% fair-value upside, at −30%, HEI screens richer than that median.
Fair Value models
Bear$139.74Fair Value $227.76Bull$296.08
Price $327.33 · Downside -30.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($5.75 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 3 officers or directors bought shares worth $524,885, most recently on Oct 8, 2026. Over the same period, one person sold shares worth $320,401. Buying cluster
BuyAlan SchriesheimDirector795 shares at $220.30$175,142Oct 8, 2026
BuyJulie NeitzelDirector592 shares at $294.93$174,601Oct 8, 2026
BuyNandakumar CheruvatathDirector2× since Mar 4, 2026: 4,877 shares, avg. $240.93$1.2MOct 8, 2026
SaleBradley K RowenChief Accounting Officer1,326 shares at $241.63$320,401Jun 10, 2026
SaleJulie NeitzelDirector676 shares at $223.00$150,748Apr 15, 2026
Plan buyVictor H MendelsonCo-COB and Co-CEO, Director795 shares at $220.30$175,142Oct 8, 2026
Plan buyAdolfo HenriquesDirector795 shares at $220.30$175,142Oct 8, 2026
Plan buyThomas M CulliganDirector795 shares at $220.30$175,142Oct 8, 2026
Plan buyMark H HildebrandtDirector795 shares at $220.30$175,142Oct 8, 2026
Plan buyCarol F. FineDirector795 shares at $220.30$175,142Oct 8, 2026
Plus 7 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+16.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+26.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.2%
Start year 2020 (pandemic). Over 10 years: +14.2% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.1%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+17.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.2%
Dividend (yield on the price)0.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.15.5% vs 17.2%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.21% → 23%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+28.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+13.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +25.3% a year for the price and +11.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Heico maintains strong margins and cash conversion through PMA parts and acquisitions, yet its main weak point is the stretched valuation with growth already priced in.
Main risk: Generative design tools and AI-assisted reverse engineering could lower barriers for new or existing competitors to develop and certify PMA parts faster, eroding Heico's catalog advantage and pricing power in the aftermarket.
Bull case: Heico could leverage its regulatory expertise and scale to integrate AI tools internally for even faster part development while deepening ties with airlines that value proven PMA reliability over new entrants.
Bear case: If AI lowers entry barriers and OEMs tighten contract restrictions, Heico's aftermarket growth could stall as competitors capture share and airlines shift more volume to OEM or in-house solutions, pressuring margins.
Heico earns strong margins by supplying PMA replacement parts that lower operating costs for airlines and defense operators while adding scale through targeted acquisitions. Organic demand holds up across commercial and military markets, yet our models view the valuation as stretched given the growth already priced in. Will its catalog depth and cash conversion continue to outpace any erosion from OEM pushback or faster competitor entry?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Aerospace & Defense · 241 stocks
Beats the industry median on 7/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score64 · Above median
Fair Value upside−30.4% · Above median
Profitability
Return on equity (12 months)17.7% · Above median
Return on assets8.1% · Top 25%
Net margin (12 months)16.4% · Top 25%
Operating margin (12 months)25.1% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)23.1% · Above median
Dividend yield (12 months)0.1% · Bottom 25%
Balance sheet
Debt / equity0.50× · Highest 25%
Valuation Multiplesvs Aerospace & Defense median · lower = cheaper
P/E (12 months)50.9× · Pricier than median
P/B10.74× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)8.93× · Priciest 25%
Price / free cash flow (fiscal year)53.7× · Pricier than median
EV/EBITDA32.7× · Priciest 25%
PEG2.13× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)100· sector 64
PAST (return on equity)71· sector 40
HEALTH (low debt)75· sector 94
DIVIDEND (yield)2· sector 18
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Heico Corporation Fair Value". https://www.fairvalue-calculator.com/stock/HEI
Frequently asked questions
Is Heico Corporation (HEI) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $227.76 versus a price of $327.33, about 30% lower (overvalued).
What is the fair value of HEI?
Our model-based fair value for Heico Corporation is $227.76 (as of Nov 5, 2026), built from audited fundamentals. The current price: $327.33.
What is the quality score of HEI?
Heico Corporation has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Heico Corporation (HEI)?
Our model-based price target is the fair value of $227.76 (as of Nov 5, 2026) from 24 valuation models. Cautious scenario $139.74, optimistic scenario $296.08. It is a calculation from audited fundamentals, not an analyst target.
What is the Heico Corporation stock forecast for 2026?
Our models put fair value at $227.76, about 30% lower versus a price of $327.33 (overvalued). Cautious scenario $139.74, optimistic scenario $296.08. The calculation is refreshed regularly with new filings.
What is the revenue of Heico Corporation (HEI)?
Heico Corporation reported trailing-twelve-month revenue of about $5.2B (latest available figure, as of Nov 5, 2026).
Does Heico Corporation pay a dividend?
Heico Corporation currently shows a dividend yield of 0.08% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Heico Corporation (HEI)?
For today's price to be fair in a discounted-cash-flow model, Heico Corporation would have to grow free cash flow by +28.3 % per year for five years (discount rate 9.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +20.2 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of HEI use?
Our models discount Heico Corporation at 9.4 %: a base by market capitalisation (large), damped by beta 1.09, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Heico Corporation that is +28.3 % per year a year over ten years, using the same discount rate (9.4 %) and the same formula as our fair value.
How much growth has Heico Corporation (HEI) delivered so far?
Over the past 5 years revenue at Heico Corporation grew +20.2 % a year. The price currently implies +28.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Heico Corporation (HEI) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Heico Corporation (+28.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Heico Corporation (HEI)?
The free-cash-flow yield on the price is 1.86 %: that much free cash flow Heico Corporation produces per unit of market value. When it exceeds the discount rate of our models (9.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Heico Corporation (HEI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Heico Corporation it is $227.76 per share (as of Nov 5, 2026), against a price of $327.33. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Heico Corporation stock overvalued or undervalued in 2026?
As of Nov 5, 2026, HEI trades above its calculated fair value: price $327.33, fair value $227.76, a gap of about −30% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HEI?
No. The price is what the market pays today ($327.33); the fair value is what the company's own numbers justify ($227.76). For Heico Corporation the two are $99.57 per share apart. That gap is exactly why we show both numbers side by side.
How much is Heico Corporation worth?
The market values Heico Corporation at about $46.2B (market capitalisation, as of Nov 5, 2026). Per share that is $327.33; our models calculate a fair value of $227.76 per share.
What do the bullish and bearish scenarios say about HEI?
Our models span a range for Heico Corporation: cautious scenario $139.74, base $227.76, optimistic $296.08 per share (as of Nov 5, 2026, price $327.33). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HEI?
Heico Corporation trades at a price-to-earnings ratio of 50.9 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $227.76 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2018 to 2025), reported earnings, 7 of the years ex one-offs: 52.7. Other multiples: PEG 2.1, P/B 10.7, P/S 8.9, EV/EBITDA 32.7.
What is the PEG ratio of HEI?
The PEG ratio of Heico Corporation is 2.13 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Heico Corporation (HEI)?
Balance-sheet figures for Heico Corporation (as of Nov 5, 2026): return on equity 17.7%, debt of 0.50 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is HEI from its 52-week high?
Heico Corporation trades at $327.33, about 13% below its 52-week high of $374.67 and 25% above the low of $260.89 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $227.76 is for.
Which stocks are comparable to Heico Corporation?
From the same area (Industrials) we also value General Electric Company, RTX Corporation, Airbus SE, Lockheed Martin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Heico Corporation stock attractive at the current price?
The data as of Nov 5, 2026: price $327.33, calculated fair value $227.76 (−30%), Quality Score 64/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HEI calculated?
We run Heico Corporation through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $227.76, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Heico Corporation itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Heico Corporation (HEI)?
The closing price on Nov 5, 2026 was $327.33. Our model-based fair value is $227.76, about 30% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Heico Corporation right now?
The price sits above even our optimistic bull case ($296.08). The favourable scenario is already priced in. Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($139.74 to $296.08) leaves room in how you read the outcome.
Where does the earnings growth of Heico Corporation (HEI) come from?
Earnings per share at Heico Corporation grew +15.7 % a year from 2014 to 2025. Broken into its drivers: revenue per share +12.5 %, EBIT margin +1.9 %, tax rate +2.3 %, residual (interest, one-offs) −1.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Heico Corporation
How large is the market capitalisation of Heico Corporation (HEI)?
The market capitalisation of Heico Corporation is $46.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Heico Corporation (HEI)?
The price-to-sales ratio of Heico Corporation is 8.93 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Heico Corporation (HEI)?
Earnings per share at Heico Corporation are $6.00 (price ÷ EPS = P/E 50.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Heico Corporation (HEI)?
The dividend yield of Heico Corporation is 0.1% (payout 4.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Heico Corporation (HEI)?
The net margin of Heico Corporation is 16.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Heico Corporation (HEI)?
The return on equity (ROE) of Heico Corporation is 17.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Heico Corporation (HEI)?
On an EBIT basis the return on assets of Heico Corporation is 11.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Heico Corporation (HEI)?
The operating margin of Heico Corporation is 25.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Heico Corporation (HEI)?
Revenue at Heico Corporation is growing +23.1% versus a year earlier (3y avg +26.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Heico Corporation (HEI)?
Earnings per share at Heico Corporation are growing +32.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Heico Corporation (HEI) carry?
The net debt of Heico Corporation is $2.0B (fiscal year 2025, ≈ 2.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 5, 2026