MTU Aero Engines AG (MTUAY) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of MTU Aero Engines AG $173, price $209, upside -17.2%, quality 63 out of 100. Calculated from audited financials with 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, dashed = 300-day average. As of Oct 3, 2026.
How to read this chart
60‑month range $71.32 – $234.12 · fair‑value band $97.09 – $266.18 · the $208.63 price screens above the $172.78 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 3, 2026.
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MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, sale, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally.
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MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, sale, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments: Original Equipment Manufacturing Business; and Maintenance, Repair, and Overhaul Business. The company offers commercial aircraft engines for wide body aircraft, narrow body, regional jets, helicopters, business jets, and turboprops; military aircraft engines for fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various spare parts. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.
Stock analysis
MTU Aero Engines AG (MTUAY) currently trades at $208.63, while our model-based Fair Value estimate is $172.78, 17.2% 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 $204.76 per share, and 7 of the 26 models we run sit above the $208.63 price.
Bear case: the Dividend Discount group reads lowest at $21.78, and 19 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: $97.09 (bear) to $266.18 (bull), the price of $208.63 sits inside 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 63/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
MTU Aero Engines AG reported revenue of €8.4B in FY2025 versus €4.2B in FY2021, a compound +19.1%/yr. Reported net income was €1.0B in FY2025, compounding +46.3%/yr from FY2021.
Key figures
Market cap $22.7B · P/E ratio 19.8 · P/S ratio 2.38 · EPS (TTM) $10.56 · Dividend yield 1.1% · Net margin 12.1% · Return on equity 24.3% · Return on assets (EBIT) 4.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 58 out of 100 (medium confidence).
What moves the price
The share trades about 11% below its 52-week high and 32% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −24% fair-value upside, at −17%, MTUAY screens cheaper than that median.
Fair Value models
Bear $97.09Fair Value $172.78Bull $266.18
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($8.11 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.Evidence ⓘEvidence = 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.
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.86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+13.6%
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.
+16.5%
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.
+16.2%
Start year 2020 (pandemic). Over 10 years: +6.6% a year
Revenue growth 21 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.
+7.3%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘ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. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+49.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+47.9%
Dividend (yield on the price)1.1%
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.35.9% vs 15.9%, picking up
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.5% → 15%
2025 sits 117% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Start year 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).
+20.6%
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.
+9.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in EUR, euro area: IMF forecast 2.2% a year to 2030, 2.6% from 2016 to 2025) that is about +18.0% a year for the price and +6.8% for the forecasts.
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 · 227 stocks
Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score63 · Top 25%
Fair Value upside−14.8% · Above median
Profitability
Return on equity (TTM)24.3% · Top 25%
Return on assets6.0% · Above median
Net margin (TTM)11.2% · Above median
Operating margin (TTM)10.9% · Above median
Growth and dividend
Revenue growth5.7% · Below median
Dividend yield (TTM)1.1% · Above median
Balance sheet
Debt / equity0.38× · Above median
Valuation Multiplesvs Aerospace & Defense median · lower = cheaper
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Cite: Fair Value Calculator (2026). "MTU Aero Engines AG Fair Value". https://www.fairvalue-calculator.com/stock/MTUAY
Frequently asked questions
Is MTU Aero Engines AG (MTUAY) overvalued or undervalued?
As of Oct 3, 2026, our model estimates a fair value of $172.78 versus a price of $208.63, about −17% upside (overvalued).
What is the fair value of MTUAY?
Our model-based fair value for MTU Aero Engines AG is $172.78 (as of Oct 3, 2026), built from audited fundamentals. The current price: $208.63.
What is the quality score of MTUAY?
MTU Aero Engines AG has a Quality Score of 63/100. 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 MTU Aero Engines AG (MTUAY)?
Our model-based price target is the fair value of $172.78 (as of Oct 3, 2026) from 26 valuation models. Cautious scenario $97.09, optimistic scenario $266.18. It is a calculation from audited fundamentals, not an analyst target.
What is the MTU Aero Engines AG stock forecast for 2026?
Our models put fair value at $172.78, about −17% upside versus a price of $208.63 (overvalued). Cautious scenario $97.09, optimistic scenario $266.18. The calculation is refreshed regularly with new filings.
What is the revenue of MTU Aero Engines AG (MTUAY)?
MTU Aero Engines AG reported trailing-twelve-month revenue of about €8.9B (latest available figure, as of Oct 3, 2026).
Does MTU Aero Engines AG pay a dividend?
MTU Aero Engines AG currently shows a dividend yield of about 1.08% relative to its recent price (as of Oct 3, 2026).
What growth is priced into MTU Aero Engines AG (MTUAY)?
For today's price to be fair in a discounted-cash-flow model, MTU Aero Engines AG would have to grow free cash flow by +20.6 % per year for five years (discount rate 9.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +16.2 % per year. As of Oct 3, 2026.
What discount rate (WACC) does the fair value of MTUAY use?
Our models discount MTU Aero Engines AG at 9.0 %: a base by market capitalisation (large), damped by beta 0.90, 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 MTU Aero Engines AG that is +20.6 % per year a year over ten years, using the same discount rate (9.0 %) and the same formula as our fair value.
How much growth has MTU Aero Engines AG (MTUAY) delivered so far?
Over the past 5 years revenue at MTU Aero Engines AG grew +16.2 % a year. The price currently implies +20.6 % 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 MTU Aero Engines AG (MTUAY) growing?
The median revenue growth in the sector is +7.0 % a year. That is the yardstick for the growth priced into MTU Aero Engines AG (+20.6 % 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 MTU Aero Engines AG (MTUAY)?
The free-cash-flow yield on the price is 2.40 %: that much free cash flow MTU Aero Engines AG produces per unit of market value. When it exceeds the discount rate of our models (9.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of MTU Aero Engines AG (MTUAY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For MTU Aero Engines AG it is $172.78 per share (as of Oct 3, 2026), against a price of $208.63. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is MTU Aero Engines AG stock overvalued or undervalued in 2026?
As of Oct 3, 2026, MTUAY trades above its calculated fair value: price $208.63, fair value $172.78, a gap of about −17% (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 MTUAY?
No. The price is what the market pays today ($208.63); the fair value is what the company's own numbers justify ($172.78). For MTU Aero Engines AG the two are $35.85 per share apart. That gap is exactly why we show both numbers side by side.
How much is MTU Aero Engines AG worth?
The market values MTU Aero Engines AG at about $22.7B (market capitalisation, as of Oct 3, 2026). Per share that is $208.63; our models calculate a fair value of $172.78 per share.
What do the bullish and bearish scenarios say about MTUAY?
Our models span a range for MTU Aero Engines AG: cautious scenario $97.09, base $172.78, optimistic $266.18 per share (as of Oct 3, 2026, price $208.63). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MTUAY?
MTU Aero Engines AG trades at a price-to-earnings ratio of 19.8 (as of Oct 3, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $172.78 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 20.8 (reported 19.8). Other multiples: PEG 1.4, P/B 4.7, P/S 2.3, EV/EBITDA 14.0.
What is the PEG ratio of MTUAY?
The PEG ratio of MTU Aero Engines AG is 1.45 (P/E divided by earnings growth, as of Oct 3, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of MTU Aero Engines AG (MTUAY)?
Balance-sheet figures for MTU Aero Engines AG (as of Oct 3, 2026): return on equity 24.3%, debt of 0.38 per unit of equity. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is MTUAY from its 52-week high?
MTU Aero Engines AG trades at $208.63, about 11% below its 52-week high of $234.12 and 32% above the low of $158.39 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $172.78 is for.
Which stocks are comparable to MTU Aero Engines AG?
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 MTU Aero Engines AG stock attractive at the current price?
The data as of Oct 3, 2026: price $208.63, calculated fair value $172.78 (−17%), Quality Score 63/100, from 26 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 MTUAY calculated?
We run MTU Aero Engines AG through 26 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 $172.78, 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 14.5 % above its aggregate fair value. MTU Aero Engines AG 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 MTU Aero Engines AG (MTUAY)?
The closing price on Oct 2, 2026 was $208.63. Our model-based fair value is $172.78, about −17% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with MTU Aero Engines AG right now?
The model range is unusually wide ($97.09 to $266.18). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of MTU Aero Engines AG (MTUAY) come from?
Earnings per share at MTU Aero Engines AG grew +12.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +5.6 %, EBIT margin +4.5 %, tax rate +0.4 %, residual (interest, one-offs) +1.9 %. 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 MTU Aero Engines AG
How large is the market capitalisation of MTU Aero Engines AG (MTUAY)?
The market capitalisation of MTU Aero Engines AG is $22.7B. 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 MTU Aero Engines AG (MTUAY)?
The price-to-sales ratio of MTU Aero Engines AG is 2.38 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of MTU Aero Engines AG (MTUAY)?
Earnings per share at MTU Aero Engines AG are $10.56 (price ÷ EPS = P/E 19.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of MTU Aero Engines AG (MTUAY)?
The dividend yield of MTU Aero Engines AG is 1.1% (payout 13.6%, on adjusted earnings, reported 12.9%). 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 MTU Aero Engines AG (MTUAY)?
The net margin of MTU Aero Engines AG is 12.1% (fiscal year 2025). 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 MTU Aero Engines AG (MTUAY)?
The return on equity (ROE) of MTU Aero Engines AG is 24.3% (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 MTU Aero Engines AG (MTUAY)?
On an EBIT basis the return on assets of MTU Aero Engines AG is 4.0% (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 MTU Aero Engines AG (MTUAY)?
The operating margin of MTU Aero Engines AG is 10.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at MTU Aero Engines AG (MTUAY)?
Revenue at MTU Aero Engines AG is growing +5.7% versus a year earlier (3y avg +16.5%). 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 MTU Aero Engines AG (MTUAY)?
Earnings per share at MTU Aero Engines AG are growing −10.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does MTU Aero Engines AG (MTUAY) carry?
The net debt of MTU Aero Engines AG is €1.2B (fiscal year 2025, ≈ 2.4 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
Oct 3, 2026