Air Arabia PJSC Valuation

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

AIRARABIA (AED2.88) is trading above our estimate of [[fair value]] (AED0.96)

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

Valuation Score

3/6

Valuation Score 3/6

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.

Below Fair Value: AIRARABIA (AED2.88) is trading above our estimate of fair value (AED0.96)

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 Ratio	9.7x
Earnings	د.إ1.38b
Market Cap	د.إ13.58b

AIRARABIA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	6.9x
PEG Ratio	5x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	27.2x
AGILITY Agility Global	25.9x	4.4%	د.إ14.0b
DTC Dubai Taxi Company P.J.S.C	20.7x	10.9%	د.إ6.6b
ADPORTS Abu Dhabi Ports Company PJSC	25.2x	21.6%	د.إ26.3b
SALIK Salik Company P.J.S.C	36.8x	16.7%	د.إ40.5b
AIRARABIA Air Arabia PJSC	9.7x	2.0%	د.إ13.6b

Price-To-Earnings vs Peers: AIRARABIA is good value based on its Price-To-Earnings Ratio (9.7x) compared to the peer average (27.2x).

Price to Earnings Ratio vs Industry

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

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: AIRARABIA is good value based on its Price-To-Earnings Ratio (9.7x) compared to the Asian Airlines industry average (10.9x).

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 Ratio	9.7x
Fair PE Ratio	17.1x

Price-To-Earnings vs Fair Ratio: AIRARABIA is good value based on its Price-To-Earnings Ratio (9.7x) compared to the estimated Fair Price-To-Earnings Ratio (17.1x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	د.إ2.88	د.إ3.09 +7.4%	4.1%	د.إ3.30	د.إ2.90	n/a	8
Nov ’25	د.إ2.85	د.إ3.02 +5.9%	5.2%	د.إ3.20	د.إ2.70	n/a	8
Oct ’25	د.إ2.75	د.إ3.11 +12.9%	8.0%	د.إ3.50	د.إ2.70	n/a	9
Sep ’25	د.إ2.70	د.إ3.11 +15.0%	8.0%	د.إ3.50	د.إ2.70	n/a	9
Aug ’25	د.إ2.62	د.إ3.06 +16.8%	8.8%	د.إ3.50	د.إ2.64	n/a	10
Jul ’25	د.إ2.31	د.إ3.10 +34.2%	9.2%	د.إ3.50	د.إ2.64	n/a	10
Jun ’25	د.إ2.31	د.إ3.11 +34.5%	9.2%	د.إ3.50	د.إ2.64	n/a	10
May ’25	د.إ2.64	د.إ3.16 +19.6%	8.1%	د.إ3.50	د.إ2.64	n/a	10
Apr ’25	د.إ2.80	د.إ3.16 +12.7%	8.1%	د.إ3.50	د.إ2.64	n/a	10
Mar ’25	د.إ2.88	د.إ3.12 +8.5%	7.8%	د.إ3.50	د.إ2.64	n/a	9
Feb ’25	د.إ2.98	د.إ3.04 +2.0%	6.8%	د.إ3.40	د.إ2.64	n/a	9
Jan ’25	د.إ2.82	د.إ3.04 +7.8%	6.8%	د.إ3.40	د.إ2.64	n/a	9
Dec ’24	د.إ2.69	د.إ3.04 +13.0%	6.8%	د.إ3.40	د.إ2.64	n/a	9
Nov ’24	د.إ2.64	د.إ3.00 +13.6%	6.4%	د.إ3.40	د.إ2.64	د.إ2.85	9
Oct ’24	د.إ2.81	د.إ3.03 +7.8%	5.2%	د.إ3.40	د.إ2.90	د.إ2.75	7
Sep ’24	د.إ2.90	د.إ3.03 +4.4%	5.2%	د.إ3.40	د.إ2.90	د.إ2.70	7
Aug ’24	د.إ2.64	د.إ2.73 +3.5%	7.6%	د.إ3.00	د.إ2.30	د.إ2.62	10
Jul ’24	د.إ2.42	د.إ2.71 +12.1%	7.5%	د.إ3.00	د.إ2.30	د.إ2.31	11
Jun ’24	د.إ2.26	د.إ2.71 +20.1%	7.5%	د.إ3.00	د.إ2.30	د.إ2.31	11
May ’24	د.إ2.20	د.إ2.76 +25.6%	5.4%	د.إ3.00	د.إ2.56	د.إ2.64	10
Apr ’24	د.إ2.12	د.إ2.76 +30.4%	5.4%	د.إ3.00	د.إ2.56	د.إ2.80	10
Mar ’24	د.إ2.24	د.إ2.62 +16.9%	11.4%	د.إ3.00	د.إ2.00	د.إ2.88	8
Feb ’24	د.إ2.25	د.إ2.45 +9.0%	8.1%	د.إ2.64	د.إ2.00	د.إ2.98	7
Jan ’24	د.إ2.15	د.إ2.40 +11.7%	7.6%	د.إ2.60	د.إ2.00	د.إ2.82	7
Dec ’23	د.إ2.07	د.إ2.40 +16.0%	7.6%	د.إ2.60	د.إ2.00	د.إ2.69	7
Nov ’23	د.إ2.03	د.إ2.32 +14.5%	7.7%	د.إ2.55	د.إ2.00	د.إ2.64	7

Analyst Forecast: Target price is less than 20% higher than the current share price.