On August 11, 2026, AeroVironment Inc AVAV shares rose 3.6%, currently priced at $196.02. This increase follows a notable 52-week trading range between $135.20 and $417.86, illustrating significant volatility in the stock's performance.
- GF Valueâ„¢ verdict: Current price of $196.02 vs GF Value of $256.20, indicating a 23.5% undervaluation.
- GF Scoreâ„¢: 85/100, indicating a strong overall rating.
- Most notable signal: Insider activity shows $0.2M sold by insiders in the last 3 months, with no buying activity.
Is AVAV Overvalued or Undervalued?
AeroVironment Inc's current price of $196.02 is significantly below the GF Valueâ„¢ estimate of $256.20, suggesting it is undervalued by about 23.5%. However, it's crucial to approach this valuation cautiously, as the GF Valueâ„¢ is derived from historical trading multiples, growth rates, and future performance predictions. Given that AeroVironment is currently unprofitable and cash-flow-negative, relying on earnings-based valuations like P/E may not be appropriate for this analysis. Instead, a Price-to-Sales (P/S) approach may be more relevant, particularly because the company's historical median P/S ratio is around 5.0x.
The GF Valuation label indicates that the stock is modestly undervalued. While this might suggest an attractive buying opportunity, potential investors should consider the risks associated with the company's current financial performance. The market's perception of long-term growth prospects, especially in the aerospace and defense sector, may also influence valuation in the future.
How Does AVAV's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | Not applicable | 106.3x (5-Year Median) |
| Forward P/E | 62.5x | Not applicable |
As AeroVironment does not currently have a meaningful P/E ratio due to its unprofitable status, the forward P/E of 62.5x should be interpreted with caution. This suggests that the stock is trading at a significant premium compared to its historical P/E median of 106.3x. However, given the lack of earnings, this methodology does not align with the GF Valueâ„¢ assessment, which emphasizes the importance of sales-based metrics in this case.
What Does AVAV's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. With a score of 85/100, AeroVironment indicates strong overall fundamentals, particularly in growth potential.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 85 |
| Financial Strength | 6/10 |
| Profitability | 7/10 |
| Growth | 9/10 |
| Valuation | 8/10 |
| Momentum | 4/10 |
The strongest area for AeroVironment is its growth rank of 9/10, indicating strong potential for revenue and earnings expansion. However, the momentum rank of 4/10 raises concerns about the stock's short-term performance trends, suggesting that while the company has strong growth prospects, there are challenges in maintaining upward price momentum.
What Are Gurus and Insiders Doing with AVAV?
Currently, 9 gurus hold AeroVironment stock, with 5 adding to their positions and 3 trimming their holdings in recent quarters. This indicates a generally positive sentiment among experienced investors, which can be a reassuring signal for potential investors.
In terms of insider activity, the sale of $0.2 million by insiders in the last 3 months, with no buying activity reported, could suggest a lack of confidence from those closest to the company. This pattern of selling without any buying may indicate that insiders are not optimistic about near-term performance, which could be a red flag for potential investors.
What This Means for Investors
Considering the 23.5% undervaluation indicated by GF Valueâ„¢ alongside its unprofitable status, AeroVironment appears to be undervalued but comes with significant risks. Investors should weigh the potential growth against the current lack of profitability and insider selling activity when making decisions. For further details, visit the AeroVironment Inc AVAV stock page.
Frequently Asked Questions
What is AVAV's GF Scoreâ„¢?
AVAV has a GF Scoreâ„¢ of 85/100, indicating strong fundamentals across various financial metrics.
Is AVAV overvalued or undervalued?
AVAV is currently undervalued according to the GF Valueâ„¢ estimate, which suggests a 23.5% upside from its current price.
What is AVAV's P/E ratio?
AVAV does not have a meaningful P/E ratio as it is currently unprofitable. The forward P/E is 62.5x, which is significantly lower than its historical median of 106.3x but should be taken with caution.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
