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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Aar Corp. To summarize, we found that Aar Corp ranked in the 2th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 99%. The most interesting components of our discounted cash flow analysis for Aar Corp ended up being:
Its compound free cash flow growth rate, as measured over the past 5.69 years, is -0.34% -- higher than only 4.24% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than only 13.94% of its sector Industrials.
Aar Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 20.51% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CCRC, CIR, NXTD, SHIP, and WHLM can be thought of as valuation peers to AIR, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
AAR (AIR), a leading independent provider of aviation services to commercial and government operators, has been named to the “Best of the Best 2020 – Top Veteran-Friendly Companies” list by U.S. Veterans Magazine (USVM). USVM polled hundreds of Fortune 1000 companies for this year’s Best of the Best evaluations. “AAR is honored to be recognized as a Top Veteran-Friendly Company,” said John Cooper, AAR SVP of Global Government & Defense.