MTU Aero Engines Valuation

Is MTX 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 MTX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MTX (€318.7) is trading below our estimate of fair value (€481.52)

Significantly Below Fair Value: MTX is trading below fair value by more than 20%.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MTX. This is calculated by dividing MTX's market cap by their current earnings.
What is MTX's PE Ratio?
PE Ratio24.2x
Earnings€709.00m
Market Cap€17.15b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MTX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.7x
RHM Rheinmetall
38.9x29.5%€26.6b
OHB OHB
12.7x11.0%€884.8m
FQT Frequentis
21.2x14.9%€363.6m
8TRA Traton
5.9x9.4%€15.1b
MTX MTU Aero Engines
24.2x11.4%€17.2b

Price-To-Earnings vs Peers: MTX is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the peer average (19.7x).


Price to Earnings Ratio vs Industry

How does MTX's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MTX 24.2xIndustry Avg. 25.4xNo. of Companies8PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MTX is good value based on its Price-To-Earnings Ratio (24.2x) compared to the European Aerospace & Defense industry average (25.4x).


Price to Earnings Ratio vs Fair Ratio

What is MTX'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.

MTX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.2x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: MTX is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).


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 MTX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€318.70
€330.95
+3.8%
16.1%€405.00€220.00n/a20
Dec ’25€322.20
€326.60
+1.4%
16.6%€400.00€220.00n/a20
Nov ’25€306.10
€300.70
-1.8%
14.2%€390.00€220.00n/a20
Oct ’25€286.10
€273.25
-4.5%
13.6%€330.00€210.00n/a20
Sep ’25€270.00
€267.14
-1.1%
12.9%€325.00€210.00n/a21
Aug ’25€260.10
€250.90
-3.5%
12.7%€300.00€190.00n/a21
Jul ’25€236.60
€245.71
+3.9%
11.2%€290.00€190.00n/a21
Jun ’25€228.50
€245.24
+7.3%
11.1%€290.00€190.00n/a21
May ’25€226.60
€244.00
+7.7%
11.3%€290.00€190.00n/a21
Apr ’25€235.20
€239.19
+1.7%
12.6%€290.00€190.00n/a21
Mar ’25€219.20
€234.59
+7.0%
11.9%€280.00€185.00n/a22
Feb ’25€211.30
€228.41
+8.1%
12.1%€280.00€185.00n/a22
Jan ’25€195.25
€217.91
+11.6%
11.4%€280.00€185.00n/a22
Dec ’24€192.50
€215.41
+11.9%
10.2%€254.00€185.00€322.2022
Nov ’24€180.30
€216.33
+20.0%
10.2%€254.00€178.00€306.1021
Oct ’24€171.75
€215.29
+25.3%
12.5%€280.00€178.00€286.1021
Sep ’24€213.90
€243.95
+14.0%
8.8%€280.00€211.00€270.0021
Aug ’24€215.10
€248.90
+15.7%
10.1%€295.00€211.00€260.1020
Jul ’24€237.40
€251.65
+6.0%
8.8%€295.00€210.00€236.6020
Jun ’24€218.00
€248.42
+14.0%
10.2%€295.00€197.00€228.5019
May ’24€237.70
€244.78
+3.0%
9.9%€295.00€197.00€226.6018
Apr ’24€230.60
€241.47
+4.7%
10.8%€280.00€197.00€235.2019
Mar ’24€231.40
€240.32
+3.9%
10.5%€280.00€197.00€219.2019
Feb ’24€229.80
€233.95
+1.8%
8.9%€280.00€200.00€211.3019
Jan ’24€202.20
€228.53
+13.0%
8.1%€280.00€200.00€195.2519
Dec ’23€200.00
€228.53
+14.3%
8.1%€280.00€200.00€192.5019

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


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