AARAIR -0.12%83 EV-to-FCF is 176.35 as of Jul. 01, 2026, which is 460% above its 10-year median of 31.51. GuruFocus rates AIR with a GF Score™ of 83/100 and a GF Value™ of $84.71 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 181 Aerospace & Defense companies, AAR ranks worse than 88.95% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, AAR's Enterprise Value is $6,578 Mil.
AAR's Free Cash Flow for the trailing twelve months (TTM) ended in Feb. 2026 was $37 Mil. Therefore, AAR's EV-to-FCF for today is 176.35.
The historical rank and industry rank for AAR's EV-to-FCF or its related term are showing as below:
AIR'
s EV-to-FCF Range Over the Past 10 Years
Min: -421.74 Med: 31.51 Max: 2889.84
Current: 176.35
During the past 13 years, the highest EV-to-FCF of AAR was 2889.84. The lowest was -421.74. And the median was 31.51.
AIR's EV-to-FCF is ranked worse than 88.95% of 181
companies
in the Aerospace & Defense industry
Industry Median: 33.82
vs AIR: 176.35
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
As of today (2026-07-01), AAR's stock price is $142.76.
AAR's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Feb. 2026 was $4.510. Therefore, AAR's PE Ratio (TTM) for today is 31.65.
AAR (NYSE:AIR) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
AAR's share price for today is $142.76.
AAR's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Feb. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.510.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
AAR EV-to-FCF Related Terms
AAR EV-to-FCF Historical Data
* Premium members only.
The historical data trend for AAR's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AAR's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where AAR's EV-to-FCF falls into.
AAR's current Enterprise Value is $6,578 Mil.
AAR's Free Cash Flow for the trailing twelve months (TTM) ended in Feb. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $37 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-FCF of 176.35 as of Jul. 01, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on AAR and its competitors. This is 460% above median its historical median of 31.51. According to the industry distribution chart, AAR ranks #161 out of 181 companies in the Aerospace & Defense industry, placing it in the top 89%.
Is AAR's EV-to-FCF too high?
AAR's current EV-to-FCF of 176.35 is 460% above median its 10-year median of 31.51. The Aerospace & Defense industry median EV-to-FCF is 33.82. AAR's value of 176.35 is 421.4% above this industry median. Based on the distribution chart, AAR ranks #161 out of 181 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, AAR has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AAR's EV-to-FCF compare to KRMN and VSEC?
According to the Aerospace & Defense industry distribution chart, AAR ranks #161 out of 181 companies for EV-to-FCF. This places AAR in the lower half of its industry. The industry median EV-to-FCF is 33.82. AAR's value of 176.35 is 421.4% above this benchmark. While the company's 10-year median is 31.51 vs. the industry median of 33.82, AAR has consistently been above 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-FCF for an Aerospace & Defense company?
The median EV-to-FCF among Aerospace & Defense companies is 33.82, based on 181 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAR's current EV-to-FCF of 176.35 is 421.4% above 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on AAR and its competitors. For the Aerospace & Defense industry, the median EV-to-FCF is 33.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAR's current EV-to-FCF is 176.35, which is 460% above median its own 10-year median of 31.51. 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 $84.71, compared to a current price of $142.76 — trading 68.5% above its estimated fair value. The current EV-to-FCF is 176.35, which is 460% above median its 10-year median of 31.51 and 421.4% above the Aerospace & Defense industry median of 33.82. AAR's overall GF Score™ is 83/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For AAR (AIR), the current EV-to-FCF is 176.35 as of Jul. 01, 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 $142.76 is trading 68.5% above its estimated GF Value™ of $84.71.
GuruFocus considers AAR to be Significantly Overvalued.
Key valuation signals for AIR:
EV-to-FCF: 176.35 (460% above median its 10-year median of 31.51)
GF Value™: $84.71 vs. price of $142.76 (68.5% above fair value)
Industry Position: 421.4% above the Aerospace & Defense median (#161 of 181)
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.
83GF Score
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