AAR CORP. provides products and services to commercial aviation, government, and defense markets worldwide. It operates in two segments, Aviation Services and Expeditionary Services. The company was founded in 1951 and is based in Wood Dale, Illinois.
AIR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AIR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Aar Corp ranked in the 11th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for AIR, they are:
Its compound free cash flow growth rate, as measured over the past 5.72 years, is -0.08% -- higher than merely 15.45% of stocks in our DCF forecasting set.
As a business, AIR is generating more cash flow than merely 20.27% of positive cash flow stocks in the Industrials.
Aar Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.79. This coverage rate is greater than that of only 18.2% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Aar Corp? See CFX, FLOW, ACM, BKNG, and CODA.