Air Arabia PJSC

DFM:AIRARABIA Stock Report

Market Cap: د.إ14.6b

Air Arabia PJSC Valuation

Is AIRARABIA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AIRARABIA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
د.إ0.82
Fair Value
282.6% overvalued intrinsic discount
8
Number of Analysts

Below Fair Value: AIRARABIA (AED3.13) is trading above our estimate of fair value (AED0.82)

Significantly Below Fair Value: AIRARABIA is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AIRARABIA?

Key metric: As AIRARABIA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AIRARABIA. This is calculated by dividing AIRARABIA's market cap by their current earnings.
What is AIRARABIA's PE Ratio?
PE Ratio10.5x
Earningsد.إ1.38b
Market Capد.إ14.61b

Price to Earnings Ratio vs Peers

How does AIRARABIA's PE Ratio compare to its peers?

The above table shows the PE ratio for AIRARABIA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.3x
AGILITY Agility Global
26.1x4.1%د.إ13.9b
DTC Dubai Taxi Company P.J.S.C
21x9.3%د.إ6.8b
ADPORTS Abu Dhabi Ports Company PJSC
24.9x20.4%د.إ25.4b
SALIK Salik Company P.J.S.C
33.3x18.8%د.إ37.2b
AIRARABIA Air Arabia PJSC
10.6x1.2%د.إ14.6b

Price-To-Earnings vs Peers: AIRARABIA is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (26.3x).

Price to Earnings Ratio vs Industry

How does AIRARABIA's PE Ratio compare vs other companies in the Asian Airlines Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
AIRARABIA 10.5xIndustry Avg. 10.6xNo. of Companies6PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AIRARABIA is expensive based on its Price-To-Earnings Ratio (10.6x) compared to the Asian Airlines industry average (10.6x).

Price to Earnings Ratio vs Fair Ratio

What is AIRARABIA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AIRARABIA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.5x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: AIRARABIA is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AIRARABIA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentد.إ3.13
د.إ3.09
-1.2%
4.1%د.إ3.30د.إ2.90n/a8
Jan ’26د.إ3.08
د.إ3.09
+0.4%
4.1%د.إ3.30د.إ2.90n/a8
Dec ’25د.إ2.99
د.إ3.12
+4.3%
4.6%د.إ3.30د.إ2.90n/a8
Nov ’25د.إ2.85
د.إ3.02
+5.9%
5.2%د.إ3.20د.إ2.70n/a8
Oct ’25د.إ2.75
د.إ3.11
+12.9%
8.0%د.إ3.50د.إ2.70n/a9
Sep ’25د.إ2.70
د.إ3.11
+15.0%
8.0%د.إ3.50د.إ2.70n/a9
Aug ’25د.إ2.62
د.إ3.06
+16.8%
8.8%د.إ3.50د.إ2.64n/a10
Jul ’25د.إ2.31
د.إ3.10
+34.2%
9.2%د.إ3.50د.إ2.64n/a10
Jun ’25د.إ2.31
د.إ3.11
+34.5%
9.2%د.إ3.50د.إ2.64n/a10
May ’25د.إ2.64
د.إ3.16
+19.6%
8.1%د.إ3.50د.إ2.64n/a10
Apr ’25د.إ2.80
د.إ3.16
+12.7%
8.1%د.إ3.50د.إ2.64n/a10
Mar ’25د.إ2.88
د.إ3.12
+8.5%
7.8%د.إ3.50د.إ2.64n/a9
Feb ’25د.إ2.98
د.إ3.04
+2.0%
6.8%د.إ3.40د.إ2.64n/a9
Jan ’25د.إ2.82
د.إ3.04
+7.8%
6.8%د.إ3.40د.إ2.64د.إ3.089
Dec ’24د.إ2.69
د.إ3.04
+13.0%
6.8%د.إ3.40د.إ2.64د.إ2.999
Nov ’24د.إ2.64
د.إ3.00
+13.6%
6.4%د.إ3.40د.إ2.64د.إ2.859
Oct ’24د.إ2.81
د.إ3.03
+7.8%
5.2%د.إ3.40د.إ2.90د.إ2.757
Sep ’24د.إ2.90
د.إ3.03
+4.4%
5.2%د.إ3.40د.إ2.90د.إ2.707
Aug ’24د.إ2.64
د.إ2.73
+3.5%
7.6%د.إ3.00د.إ2.30د.إ2.6210
Jul ’24د.إ2.42
د.إ2.71
+12.1%
7.5%د.إ3.00د.إ2.30د.إ2.3111
Jun ’24د.إ2.26
د.إ2.71
+20.1%
7.5%د.إ3.00د.إ2.30د.إ2.3111
May ’24د.إ2.20
د.إ2.76
+25.6%
5.4%د.إ3.00د.إ2.56د.إ2.6410
Apr ’24د.إ2.12
د.إ2.76
+30.4%
5.4%د.إ3.00د.إ2.56د.إ2.8010
Mar ’24د.إ2.24
د.إ2.62
+16.9%
11.4%د.إ3.00د.إ2.00د.إ2.888
Feb ’24د.إ2.25
د.إ2.45
+9.0%
8.1%د.إ2.64د.إ2.00د.إ2.987
Jan ’24د.إ2.15
د.إ2.40
+11.7%
7.6%د.إ2.60د.إ2.00د.إ2.827
Analyst Price Target
Consensus Narrative from 8 Analysts
د.إ3.09
Fair Value
1.2% overvalued intrinsic discount
8
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/23 13:15
End of Day Share Price 2025/01/23 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Air Arabia PJSC is covered by 23 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Salma KharbachiAlphaMena
Shadab AshfaqAl Ramz Capital LLC
Rita GuindyArqaam Capital Research Offshore S.A.L.