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AAR PS Ratio

: 0.92 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, AAR's share price is $46.60. AAR's Revenue per Share for the trailing twelve months (TTM) ended in May. 2022 was $50.69. Hence, AAR's PS Ratio for today is 0.92.

Warning Sign:

AAR Corp stock PS Ratio (=0.92) is close to 10-year high of 1.02

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

AIR' s PS Ratio Range Over the Past 10 Years
Min: 0.21   Med: 0.66   Max: 1.02
Current: 0.93

During the past 13 years, AAR's highest PS Ratio was 1.02. The lowest was 0.21. And the median was 0.66.

AIR's PS Ratio is ranked better than
74.39% of 285 companies
in the Aerospace & Defense industry
Industry Median: 2.03 vs AIR: 0.93

AAR's Revenue per Sharefor the three months ended in May. 2022 was $13.01. Its Revenue per Share for the trailing twelve months (TTM) ended in May. 2022 was $50.69.

Warning Sign:

AAR Corp revenue per share has been in decline over the past 3 years.

During the past 12 months, the average Revenue per Share Growth Rate of AAR was 8.00% per year. During the past 3 years, the average Revenue per Share Growth Rate was -4.90% per year. During the past 5 years, the average Revenue per Share Growth Rate was 0.60% per year. During the past 10 years, the average Revenue per Share Growth Rate was 2.10% per year.

During the past 13 years, AAR's highest 3-Year average Revenue per Share Growth Rate was 18.10% per year. The lowest was -20.90% per year. And the median was 7.10% per year.

Back to Basics: PS Ratio


AAR PS Ratio Historical Data

The historical data trend for AAR's PS 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 Annual Data
Trend May13 May14 May15 May16 May17 May18 May19 May20 May21 May22
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.88 0.51 0.34 0.89 0.95

AAR Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
PS Ratio 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 Premium Member Only Premium Member Only Premium Member Only 0.89 0.70 0.67 0.90 0.95

Competitive Comparison

For the Aerospace & Defense subindustry, AAR's PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution

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

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



AAR PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

AAR's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=46.60/50.687
=0.92

AAR's Share Price of today is $46.60.
AAR's Revenue per Share for the trailing twelve months (TTM) ended in May. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $50.69.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


AAR  (NYSE:AIR) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


AAR PS Ratio Related Terms

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


AAR Business Description

AAR logo
Traded in Other Exchanges
Address
1100 North 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.
Executives
Lord Ellen M. director 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Leduc Robert F director UNITED TECHNOLOGIES CORP 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Gilbertson H John Jr director 3005 HIGHLAND PARKWAY SUITE 200 DOWNERS GROVE IL 60515
Mcnabb Duncan J. director C/O ATLAS AIR WORLDWIDE HOLDINGS, INC. 2000 WESTCHESTER AVENUE PURCHASE NY 10577
Garascia Jessica A. officer: Vice President and Secretary 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Jessup Christopher A. officer: Vice President-CCO 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Gillen Sean M. officer: VP-CFO 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Milligan Michael D officer: Chief Financial Officer 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Pachapa Eric officer: VP, Controller and CAO 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Vogel Jennifer L director C/O AAR CORP. 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Fortson John C. officer: VP, CFO & Treasurer 5255 VIRGINIA AVE NORTH CHARLESTON SC 29406
Anderson Anthony director 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Holmes John Mcclain Iii officer: Group Vice President 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Pace Peter director C/O AAR CORP. 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Martinez Randy J officer: Group Vice President HLH BUILDING 101 WORLD DRIVE PEACHTREE CITY GA 30269

AAR Headlines

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