Latest Ratios: P/E Ratio 410.3x · EV/EBITDA 27.7x · ROE 1.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.7B | $2.2B | $2.5B | $1.8B | $1.7B | $1.5B | $706M | $1.1B | $1.5B | $1.2B | $845M |
| Enterprise Value | $6.7B | $3.1B | $3.5B | $2.0B | $1.8B | $1.6B | $972M | $1.2B | $1.7B | $1.3B | $961M |
| P/E Ratio → | 410.31 | 175.46 | 55.03 | 19.81 | 22.32 | 41.75 | 28.41 | 143.29 | 99.31 | 21.30 | 17.82 |
| P/S Ratio | 2.05 | 0.79 | 1.08 | 0.88 | 0.95 | 0.89 | 0.34 | 0.51 | 0.88 | 0.68 | 0.51 |
| P/B Ratio | 4.24 | 1.81 | 2.11 | 1.60 | 1.68 | 1.51 | 0.78 | 1.16 | 1.65 | 1.31 | 0.98 |
| P/FCF | 4078.96 | 1570.34 | 180.79 | — | 29.98 | 15.70 | — | 21.00 | 36.55 | — | — |
| P/OCF | 158.19 | 60.90 | 57.64 | 75.49 | 23.08 | 14.01 | — | 15.58 | 24.05 | 54.97 | 26.31 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.13 | 1.51 | 1.01 | 1.01 | 0.98 | 0.47 | 0.57 | 0.97 | 0.76 | 0.58 |
| EV / EBITDA | 27.71 | 13.10 | 20.50 | 12.41 | 13.13 | 13.30 | 11.44 | 8.30 | 13.38 | 11.64 | 8.22 |
| EV / EBIT | 35.97 | 27.56 | 34.41 | 15.06 | 16.55 | 43.90 | 22.25 | 11.75 | 19.79 | 16.31 | 14.95 |
| EV / FCF | — | 2249.70 | 251.29 | — | 31.76 | 17.21 | — | 23.41 | 40.01 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 19.0% | 19.0% | 19.1% | 18.6% | 17.2% | 16.7% | 13.0% | 16.1% | 16.9% | 15.6% | 14.2% |
| Operating Margin | 6.7% | 6.7% | 5.6% | 6.7% | 5.9% | 5.2% | 2.0% | 4.8% | 4.9% | 4.5% | 4.0% |
| Net Profit Margin | 0.4% | 0.4% | 2.0% | 4.5% | 4.3% | 2.2% | 1.2% | 0.4% | 0.9% | 3.2% | 2.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.0% | 1.0% | 4.0% | 8.5% | 7.8% | 3.8% | 2.7% | 0.8% | 1.7% | 6.3% | 5.6% |
| ROA | 0.4% | 0.4% | 2.0% | 5.3% | 5.1% | 2.0% | 1.4% | 0.5% | 1.0% | 3.8% | 3.3% |
| ROIC | 6.4% | 6.4% | 5.5% | 8.1% | 7.1% | 5.6% | 2.8% | 7.0% | 6.0% | 5.9% | 5.1% |
| ROCE | 8.1% | 8.1% | 6.8% | 9.9% | 8.8% | 5.9% | 2.9% | 8.4% | 7.3% | 7.0% | 6.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.86 | 0.86 | 0.90 | 0.29 | 0.15 | 0.20 | 0.74 | 0.16 | 0.19 | 0.17 | 0.17 |
| Debt / EBITDA | 4.36 | 4.36 | 6.25 | 1.96 | 1.12 | 1.59 | 7.89 | 1.00 | 1.40 | 1.34 | 1.27 |
| Net Debt / Equity | — | 0.78 | 0.82 | 0.23 | 0.10 | 0.15 | 0.29 | 0.13 | 0.16 | 0.16 | 0.14 |
| Net Debt / EBITDA | 3.96 | 3.96 | 5.75 | 1.54 | 0.73 | 1.17 | 3.13 | 0.85 | 1.15 | 1.25 | 1.00 |
| Debt / FCF | — | 679.36 | 70.50 | — | 1.78 | 1.51 | — | 2.41 | 3.45 | — | — |
| Interest Coverage | 1.52 | 1.52 | 2.35 | 10.93 | 46.29 | 7.36 | 4.70 | 10.48 | 10.69 | 15.53 | 10.05 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.72 | 2.72 | 2.98 | 3.12 | 2.89 | 2.78 | 3.76 | 2.66 | 2.83 | 2.65 | 2.58 |
| Quick Ratio | 1.26 | 1.26 | 1.41 | 1.49 | 1.31 | 1.18 | 2.13 | 1.20 | 1.45 | 1.36 | 1.26 |
| Cash Ratio | 0.17 | 0.17 | 0.18 | 0.19 | 0.15 | 0.15 | 1.06 | 0.06 | 0.09 | 0.03 | 0.09 |
| Asset Turnover | — | 0.98 | 0.84 | 1.09 | 1.16 | 1.07 | 1.00 | 1.35 | 1.15 | 1.18 | 1.14 |
| Inventory Turnover | 2.78 | 2.78 | 2.56 | 2.82 | 2.74 | 2.55 | 2.89 | 3.29 | 3.16 | 3.44 | 3.15 |
| Days Sales Outstanding | — | 64.99 | 64.60 | 60.18 | 57.68 | 52.71 | 38.97 | 45.72 | 42.17 | 48.42 | 54.51 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | 0.0% | 1.5% | 1.0% | 0.7% | 0.9% | 1.2% |
| Payout Ratio | — | — | — | — | — | 0.3% | 43.1% | 140.0% | 66.0% | 18.1% | 21.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.2% | 0.6% | 1.8% | 5.0% | 4.5% | 2.4% | 3.5% | 0.7% | 1.0% | 4.7% | 5.6% |
| FCF Yield | 0.0% | 0.1% | 0.6% | — | 3.3% | 6.4% | — | 4.8% | 2.7% | — | — |
| Buyback Yield | 0.2% | 0.5% | 0.2% | 2.8% | 2.4% | 0.0% | 0.6% | 1.0% | 0.8% | 1.7% | 2.2% |
| Total Shareholder Yield | 0.2% | 0.5% | 0.2% | 2.8% | 2.4% | 0.0% | 2.1% | 2.0% | 1.5% | 2.5% | 3.5% |
| Shares Outstanding | — | $36M | $35M | $35M | $36M | $35M | $35M | $35M | $35M | $34M | $35M |
Margin compression from labor
Based on current market data, AIR trades at a forward P/E of 29.20, which appears disconnected from its historical net margin volatility and suggests investors are pricing in an aggressive growth trajectory that the company's recent earnings performance has yet to fully justify or validate.
The valuation multiple appears to be pricing in a level of operational efficiency that remains elusive given the company's thin net margins. Investors should monitor whether the current premium can be sustained if the anticipated margin expansion from recent acquisitions fails to materialize in the coming fiscal quarters.
According to recent quarterly filings, AIR's ROIC has remained stagnant, fluctuating between 1.9% and 2.5% over the last ten quarters, which indicates that the company is struggling to generate meaningful economic value above its cost of capital despite significant investments in new assets and acquisitions.
The low ROIC suggests that the capital-intensive nature of the MRO business model, combined with the integration of large acquisitions, is diluting returns. This trend warrants further investigation into whether the company's asset base is being utilized efficiently or if it is becoming bloated by non-performing goodwill.
As reported in financial statements, the company's cash conversion cycle remains exceptionally long at 519 days in 2026Q3, primarily driven by a massive inventory holding period that highlights the structural difficulty of managing a complex, multi-platform used serviceable material supply chain in a volatile market.
The persistent length of the CCC suggests that AIR is effectively acting as a bank for its customers, tying up significant capital in inventory that could otherwise be deployed for higher-return initiatives. This inefficiency appears to be a structural feature of the aftermarket business that limits free cash flow generation.
Based on the provided balance sheet data, the debt-to-EBITDA ratio has shown significant volatility, reaching 28.90 in 2026Q3, which indicates that the company's ability to service its debt is becoming increasingly sensitive to fluctuations in operating performance and the timing of large-scale capital deployments.
While the current ratio remains healthy, the rapid accumulation of debt to fund inorganic growth creates a vulnerability to interest rate shifts and operational downturns. Investors should be cautious of the company's reliance on debt to maintain its competitive position in the MRO market.
The P/E ratio is frequently misapplied to AIR, as it obscures the significant impact of non-recurring integration costs and heavy depreciation associated with its capital-intensive MRO assets, which often lead to distorted earnings figures that do not reflect the company's true underlying cash-generating capacity.
Analysts should instead focus on EV/EBITDA or free cash flow yield to better understand the company's operational performance. Relying on P/E in this context may lead to an inaccurate assessment of the company's valuation relative to its peers, as it fails to account for the capital structure and non-cash charges.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AIR stock.
AAR Corp.'s current P/E ratio is 410.3x. The historical average is 39.9x. This places it at the 100th percentile of its historical range.
AAR Corp.'s current EV/EBITDA is 27.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.5x.
AAR Corp.'s return on equity (ROE) is 1.0%. The historical average is 5.7%.
Based on historical data, AAR Corp. is trading at a P/E of 410.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AAR Corp. has 19.0% gross margin and 6.7% operating margin.
AAR Corp.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.