AER AerCap Holdings N.V.
$146.99
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Undervalued

Trading 62.8% below fair value

You pay $146.99
Bear $316.34
Fair $395.42
Bull $474.51
Bear $316.34 +115.2% $21.30 × 15x P/E
Fair $395.42 +169.0% $21.30 × 19x P/E
Bull $474.51 +222.8% $21.30 × 22x P/E

Adjust Assumptions

18.6x
21.3$

Key Value Driver

Normalized P/E multiple (19x base case)

Implied Market Multiple 6.9x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (25 analysts) $178.00
Divergence from AlphaVal 122%

Summary

Applying a 19x P/E to adjusted EPS of $21.30, the base-case value is $395.42 per share.

Warnings

ℹ Wall Street's average price target is $178.00 (from 25 analysts). Our estimate is 122% above the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples