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AARAIR +1.30%85 EV-to-EBIT is 21.25 as of Aug. 16, 2026, which is 16% above its 10-year median of 18.38. GuruFocus rates AIR with a GF Score™ of 85/100 and a GF Value™ of $89.71 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 255 Aerospace & Defense companies, AAR ranks better than 65.88% on this metric.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, AAR's Enterprise Value is $6,759 Mil.
AAR's EBIT for the trailing twelve months (TTM) ended in May. 2026 was $318 Mil. Therefore, AAR's EV-to-EBIT for today is 21.25.
The historical rank and industry rank for AAR's EV-to-EBIT or its related term are showing as below:
AIR'
s EV-to-EBIT Range Over the Past 10 Years
Min: -270.52 Med: 18.38 Max: 1250.35
Current: 21.25
During the past 13 years, the highest EV-to-EBIT of AAR was 1250.35. The lowest was -270.52. And the median was 18.38.
AIR's EV-to-EBIT is ranked better than 65.88% of 255
companies
in the Aerospace & Defense industry
Industry Median: 29.35
vs AIR: 21.25
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
AAR's Enterprise Value for the quarter that ended in May. 2026 was $5,402 Mil.
AAR's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $318 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.
AAR EV-to-EBIT Related Terms
AAR EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for AAR's EV-to-EBIT 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.
For the Aerospace & Defense subindustry, AAR's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AAR's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where AAR's EV-to-EBIT falls into.
AAR's current Enterprise Value is $6,759 Mil.
AAR's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $318 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.
AAR (AIR) has a EV-to-EBIT of 21.25 as of Aug. 16, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on AAR and its competitors. This is 16% above median its historical median of 18.38. According to the industry distribution chart, AAR ranks #87 out of 255 companies in the Aerospace & Defense industry, placing it in the top 34.1%.
Is AAR's EV-to-EBIT too high?
AAR's current EV-to-EBIT of 21.25 is 16% above median its 10-year median of 18.38. The Aerospace & Defense industry median EV-to-EBIT is 29.35. AAR's value of 21.25 is 27.6% below this industry median. Based on the distribution chart, AAR ranks #87 out of 255 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, AAR has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AAR's EV-to-EBIT compare to VSEC and BETA?
According to the Aerospace & Defense industry distribution chart, AAR ranks #87 out of 255 companies for EV-to-EBIT. This puts AAR in the upper half of its industry. The industry median EV-to-EBIT is 29.35. AAR's value of 21.25 is 27.6% below this benchmark. While the company's 10-year median is 18.38 vs. the industry median of 29.35, AAR has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Aerospace & Defense company?
The median EV-to-EBIT among Aerospace & Defense companies is 29.35, based on 255 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAR's current EV-to-EBIT of 21.25 is 27.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on AAR and its competitors. For the Aerospace & Defense industry, the median EV-to-EBIT is 29.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAR's current EV-to-EBIT is 21.25, which is 16% above median its own 10-year median of 18.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAR stock overvalued right now?
Based on GuruFocus' analysis, AAR (AIR) is currently considered Significantly Overvalued. The stock's GF Value™ is $89.71, compared to a current price of $145.25 — trading 61.9% above its estimated fair value. The current EV-to-EBIT is 21.25, which is 16% above median its 10-year median of 18.38 and 27.6% below the Aerospace & Defense industry median of 29.35. AAR's overall GF Score™ is 85/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For AAR (AIR), the current EV-to-EBIT is 21.25 as of Aug. 16, 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 AAR (AIR) Overvalued in 2026?
Based on GuruFocus' analysis, AAR stock appears to be overvalued.
The current stock price of $145.25 is trading 61.9% above its estimated GF Value™ of $89.71.
GuruFocus considers AAR to be Significantly Overvalued.
Key valuation signals for AIR:
EV-to-EBIT: 21.25 (16% above median its 10-year median of 18.38)
GF Value™: $89.71 vs. price of $145.25 (61.9% above fair value)
Industry Position: 27.6% below the Aerospace & Defense median (#87 of 255)
No single metric tells the full story. See the AIR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AAR Corp is engaged in providing products and services to aviation, government and defense market. It operates in segments namely: The parts supply segment majorly consists of sales and leasing of USM and aftermarket distribution of new, OEM-supplied replacement parts; Repair & Engineering segment provides airframe maintenance, component repair, and landing gear overhaul services; Integrated Solutions segment consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the U.S. Department of Defense, flight hour component inventory; and The Expeditionary Services segment consists of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and NGOs.
85GF Score
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