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AAR (FRA:ARZ) Shiller PE Ratio : 54.56 (As of Apr. 25, 2024)


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What is AAR Shiller PE Ratio?

As of today (2024-04-25), AAR's current share price is €62.20. AAR's E10 for the quarter that ended in Feb. 2024 was €1.14. AAR's Shiller PE Ratio for today is 54.56.

The historical rank and industry rank for AAR's Shiller PE Ratio or its related term are showing as below:

FRA:ARZ' s Shiller PE Ratio Range Over the Past 10 Years
Min: 10.7   Med: 26.57   Max: 55.01
Current: 53.51

During the past years, AAR's highest Shiller PE Ratio was 55.01. The lowest was 10.70. And the median was 26.57.

FRA:ARZ's Shiller PE Ratio is ranked worse than
61.03% of 136 companies
in the Aerospace & Defense industry
Industry Median: 38.13 vs FRA:ARZ: 53.51

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

AAR's adjusted earnings per share data for the three months ended in Feb. 2024 was €0.362. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €1.14 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


AAR Shiller PE Ratio Historical Data

The historical data trend for AAR's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

AAR Shiller PE Ratio Chart

AAR Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.52 17.47 37.89 39.88 37.46

AAR Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 43.19 37.46 47.78 53.70 52.60

Competitive Comparison of AAR's Shiller PE Ratio

For the Aerospace & Defense subindustry, AAR's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


AAR's Shiller PE Ratio Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, AAR's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where AAR's Shiller PE Ratio falls into.



AAR Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

AAR's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=62.20/1.14
=54.56

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

AAR's E10 for the quarter that ended in Feb. 2024 is calculated as:

For example, AAR's adjusted earnings per share data for the three months ended in Feb. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=0.362/129.4194*129.4194
=0.362

Current CPI (Feb. 2024) = 129.4194.

AAR Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201405 0.313 100.373 0.404
201408 0.270 100.352 0.348
201411 0.305 99.635 0.396
201502 -0.784 99.032 -1.025
201505 0.322 100.333 0.415
201508 0.584 100.548 0.752
201511 0.214 100.135 0.277
201602 0.126 100.040 0.163
201605 0.301 101.355 0.384
201608 0.250 101.617 0.318
201611 0.324 101.829 0.412
201702 0.376 102.779 0.473
201705 0.561 103.256 0.703
201708 0.263 103.587 0.329
201711 -0.562 104.072 -0.699
201802 0.356 105.052 0.439
201805 0.288 106.148 0.351
201808 0.372 106.383 0.453
201811 0.176 106.338 0.214
201902 -0.951 106.649 -1.154
201905 0.581 108.048 0.696
201908 0.108 108.245 0.129
201911 0.362 108.519 0.432
202002 0.055 109.139 0.065
202005 -0.431 108.175 -0.516
202008 -0.355 109.662 -0.419
202011 0.195 109.793 0.230
202102 0.653 110.968 0.762
202105 0.321 113.576 0.366
202108 0.272 115.421 0.305
202111 0.508 117.269 0.561
202202 0.555 119.703 0.600
202205 0.624 123.323 0.655
202208 0.622 124.958 0.644
202211 0.628 125.607 0.647
202302 0.579 126.928 0.590
202305 0.607 128.314 0.612
202308 -0.018 129.538 -0.018
202311 0.619 129.548 0.618
202402 0.362 129.419 0.362

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


AAR  (FRA:ARZ) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


AAR Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of AAR's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


AAR (FRA:ARZ) Business Description

Traded in Other Exchanges
Address
1100 N. Wood Dale Road, One AAR Place, Wood Dale, IL, USA, 60191
AAR Corp is engaged in providing products and services to aviation, government, and defense market. It operates in two segments namely Aviation Services and Expeditionary Services. The Aviation Services segment consists of aftermarket support and services businesses that provide spares and maintenance support for aircraft operated by it's commercial and government/defense customers. The Expeditionary Services segment consists of businesses that provide products and services supporting the movement of equipment and personnel by the U.S. Department of Defense, foreign governments, and non-governmental organizations. It generates a majority of its revenue from the Aviation Services Segment.

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