Air Arabia PJSC (DFM:AIRARABIA) Earnings Yield %: 6.32% (As of Jul. 20, 2026)

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Director of Data and Quant Analytics at GuruFocus
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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

DFM:AIRARABIA Air Arabia PJSC DFM:AIRARABIA
80 GF Score
Price د.إ5.19
GF Value د.إ3.84
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Air Arabia PJSC Earnings Yield %?

Air Arabia PJSC DFM:AIRARABIA -0.19% 80 Earnings Yield % is 6.32% as of Jul. 20, 2026. GuruFocus rates DFM:AIRARABIA with a GF Score™ of 80/100 and a GF Value™ of د.إ3.84 (Significantly Overvalued). The stock has 8 warning signs investors should review.

The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

As of today (2026-07-20), the stock price of Air Arabia PJSC is د.إ5.19. Air Arabia PJSC's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was د.إ0.33. Therefore, Air Arabia PJSC's earnings yield of today is 6.32%.

The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Air Arabia PJSC's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 27.85%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Air Arabia PJSC  (DFM:AIRARABIA) Earnings Yield % Explanation

If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.

Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.

Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.

Be Aware

Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.


Air Arabia PJSC Earnings Yield % Related Terms

DFM:AIRARABIA
80GF Score
Air Arabia PJSC DFM:AIRARABIA
Earnings Yield % is just one metric. See GF Score™, valuation, warning signs, and more.
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Air Arabia PJSC Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

Air Arabia PJSC's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=0.328/5.19
=6.32 %

Air Arabia PJSC's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was د.إ0.328 Mil.

* 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.

It can also be calculated from the numbers for the whole company:

Earnings Yield=Net Income /Market Cap

The earnings in the calculation is the Trailing Twelve Months earnings.

Frequently Asked Questions Learn more about Earnings Yield % →
What does a Earnings Yield % of 6.32% mean?
Air Arabia PJSC (DFM:AIRARABIA) has a Earnings Yield % of 6.32% as of Jul. 20, 2026. Earnings Yield equals per-share earnings divided by share price. It is the inverse of the price-earnings ratio. View historical data on Air Arabia PJSC and its competitors.
Is Air Arabia PJSC's Earnings Yield % too high?
Air Arabia PJSC's current Earnings Yield % is 6.32%. Overall, Air Arabia PJSC has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air Arabia PJSC's Earnings Yield % compare to DAL and UAL?
Air Arabia PJSC's Earnings Yield % of 6.32% can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield % for a Transportation company?
A good Earnings Yield % depends on the Transportation industry context. However, Earnings Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield % mean?
A high Earnings Yield % can signal that a stock is expensive relative to its fundamentals. Earnings Yield equals per-share earnings divided by share price. It is the inverse of the price-earnings ratio. View historical data on Air Arabia PJSC and its competitors. Air Arabia PJSC's current Earnings Yield % is 6.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Arabia PJSC stock overvalued right now?
Based on GuruFocus' analysis, Air Arabia PJSC (DFM:AIRARABIA) is currently considered Significantly Overvalued. The stock's GF Value™ is د.إ3.84, compared to a current price of د.إ5.19 — trading 35.2% above its estimated fair value. The current Earnings Yield % is 6.32%. Air Arabia PJSC's overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield % calculated?
Earnings Yield % is calculated from a company's financial statements. For Air Arabia PJSC (DFM:AIRARABIA), the current Earnings Yield % is 6.32% as of Jul. 20, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Air Arabia PJSC (DFM:AIRARABIA) Overvalued in 2026?

Based on GuruFocus' analysis, Air Arabia PJSC stock appears to be overvalued. The current stock price of د.إ5.19 is trading 35.2% above its estimated GF Value™ of د.إ3.84. GuruFocus considers Air Arabia PJSC to be Significantly Overvalued.

Key valuation signals for DFM:AIRARABIA:

  • Earnings Yield %: 6.32%
  • GF Value™: د.إ3.84 vs. price of د.إ5.19 (35.2% above fair value)
  • GF Score™: 80/100 with 8 warning signs

No single metric tells the full story. See the DFM:AIRARABIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Air Arabia PJSC Business Description

Address Sharjah Airport Road, AONE Building, Po Box 132, Sharjah, ARE
Air Arabia PJSC is a group of airlines and companies offering travel and tourism services internationally. Its activities include international commercial air transportation, aircraft trading and rental, aircraft spare parts trading, passenger transport, cargo services, aviation training, aircraft repairs and maintenance, as well as travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services. The company operates through two segments: Airline, covering air transportation, aircraft rental, passenger transport, cargo services, aviation training, and aircraft repairs and maintenance, and Other, covering travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services.
80GF Score

Get the complete analysis for DFM:AIRARABIA

Earnings Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

د.إ5.19
Price
د.إ3.84
GF Value