AAR Corp (AIR) fair value: what the stock is really worth
As of Oct 9, 2026: fair value of AAR Corp $47.66, price $100, upside -52.5%, quality 40 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? No
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AAR Corp
AIR · USWeakest SetupStrongly overvalued and low quality.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range $31.64 – $153.71 · fair‑value band $21.91 – $87.54 · the $100.43 price screens above the $47.66 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 27, 2026.
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Company profile
AAR Corp. provides products and services to commercial aviation, government, and defense markets in North America, Europe, Africa, Asia, and internationally. It operates through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services.
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AAR Corp. provides products and services to commercial aviation, government, and defense markets in North America, Europe, Africa, Asia, and internationally. It operates through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. The company leases and sells aircraft components and replacement parts; and designs, manufactures, and repairs transportation pallets. The company also provides airframe maintenance services, such as airframe inspection, painting services, line maintenance, airframe modifications, structural repairs, avionics service and installation, exterior, and interior refurbishment services; component repair services, including maintenance, repair, and overhaul services, engine and airframe accessories, and interior refurbishment; and engineering services, such as integration, certification and procurement. In addition, it develops aircraft components and parts; designs proprietary designated engineering representative repairs; and provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating workflows. Further, the company engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services, as well as engineering, design, and system integration services for specialized command and control systems; and flight hour component inventory and repair services. Additionally, it offers containers and shelters for military and humanitarian tactical deployment activities; and shelters, such as stationary and vehicle-mounted applications. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.
Stock analysis
AAR Corp (AIR) currently trades at $100.43, while our model-based Fair Value estimate is $47.66, 52.5% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $89.67 per share, and 1 of the 24 models we run sit above the $100.43 price.
Bear case: the Growth DCF group reads lowest at $16.46, and 23 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: $21.91 (bear) to $87.54 (bull), the price of $100.43 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 40/100 (below-average quality), in the Industrials sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
AAR Corp reported revenue of $3.3B in FY2026 versus $1.8B in FY2022, a compound +16.1%/yr. Reported net income was $188M in FY2026, compounding +24.3%/yr from FY2022.
Key figures
Market cap $4.7B · P/E ratio 20.7 · P/S ratio 1.17 · EPS (TTM) $4.86 · Net margin 5.7% · Return on equity 12.9% · Return on assets (EBIT) 6.7% · Operating margin 8.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (medium confidence).
What moves the price
The share trades about 35% below its 52-week high and 30% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −20% fair-value upside, at −53%, AIR screens richer than that median.
Fair Value models
All 24 models by family
P/S and P/B multiple show the same value here: both are capped by the same earnings anchor (earnings per share times 17), because margin and return on equity do not support the sector multiple.
Quality Score breakdown
Of which business quality 41 · Market factors (momentum, volatility) 41
Revenue & earnings trend
Growth Forecast
AIR screens overvalued: fair value 53% below the price. Compare with General Electric Company →
Recent news
- Airbus (ENXTPA:AIR) Has Investors Asking A Bigger Question
- After Plunging 20.5% in 4 Weeks, Here's Why the Trend Might Reverse for AAR (AIR)
- AIR Q3 Deep Dive: MRO Holdings Acquisition Expands Scale and Margins
- AAR (AIR) Stock Looks Rich After The Planned $1.8B Deal
Compare AAR Corp with another stock
Price, fair value, quality and upside side by side.
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 · 231 stocks
Valuation Multiplesvs Aerospace & Defense median · lower = cheaper
Strength profile in five axes (Snowflake)
VALUE 0: the price sits above our fair-value range.
Context: sector, industry, market
- Is the Industrials sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Industrials
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| TransDigm Group TDG | $1,116 | $1,228 | +10% | vs AIR |
| Honeywell Aerospace Inc HONA | $154.63 | $170.09 | +10% | vs AIR |
| Lockheed Martin Corporation LMT | $506.63 | $439.62 | −13% | vs AIR |
| General Dynamics Corporation GD | $330.09 | $274.19 | −17% | vs AIR |
| Northrop Grumman Corporation NOC | $478.00 | $382.98 | −20% | vs AIR |
| Thales S.A HO | €215.70 | €170.99 | −21% | vs AIR |
| RTX Corporation RTX | $183.29 | $88.30 | −52% | vs AIR |
| Rheinmetall AG RHM | €934.90 | €313.19 | −67% | vs AIR |
| General Electric Company GE | $306.34 | $92.61 | −70% | vs AIR |
| Howmet Aerospace Inc HWM | $231.27 | $52.67 | −77% | vs AIR |
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Key figures of AAR Corp
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