Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.
If you are wondering whether Airbus at around €171.68 is offering fair value or an opportunity, the key is to look beyond the headline share price and focus on what the numbers are actually saying.
The stock has been mixed recently, with a 2.0% decline over the last 7 days, a 1.0% gain over 30 days, a 15.7% decline year to date, and a 24.9% return over 1 year, 40.9% over 3 years, and 88.0% over 5 years. This naturally raises questions about how the current price lines up against fundamentals.
Recent coverage around Airbus has kept attention on the stock, with ongoing interest in how it is positioned within the broader aerospace and defense sector and how market expectations are reflected in the share price. This backdrop helps explain why the latest moves are being closely watched by investors who care about what they are paying for future prospects.
On Simply Wall St’s 6 point valuation framework, Airbus scores a full 6 out of 6. The sections ahead will compare different valuation methods before highlighting a more rounded way to think about what this score really means for you.
Find out why Airbus’s 24.9% return over the last year is lagging behind its peers.
A Discounted Cash Flow, or DCF, model takes Airbus’s expected future cash flows and discounts them back to today, aiming to estimate what the business could be worth in € right now.
Airbus currently reports trailing twelve month free cash flow of about €4.23b. Based on analyst inputs for the next few years and then extending those trends further out, Simply Wall St’s 2 Stage Free Cash Flow to Equity model projects free cash flow reaching about €10.25b in 2030. Only the first few years are based on analyst estimates, with later years extrapolated from those earlier assumptions.
When all those projected cash flows are discounted back to today, the model arrives at an estimated intrinsic value of around €310.60 per share. Compared with the current share price of about €171.68, this implies a 44.7% discount, which indicates Airbus is trading meaningfully below this particular DCF estimate.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Airbus is undervalued by 44.7%. Track this in your watchlist or portfolio, or discover 228 more high quality undervalued stocks.
AIR Discounted Cash Flow as at Apr 2026
Story Continues
For profitable companies like Airbus, the P/E ratio is a widely used way to link what you pay for the stock to the earnings the business is currently generating. It gives you a quick sense of how much the market is paying for each €1 of profit.
What counts as a “normal” P/E depends on how the market sees a company’s growth potential and risk. Higher expected growth and lower perceived risk usually support higher P/E ratios, while slower growth or higher risk tend to justify lower multiples.
Airbus currently trades on a P/E of about 25.89x. This sits below the average for its Aerospace & Defense industry, which is around 50.95x, and also below the peer group average of about 30.15x. Simply Wall St’s Fair Ratio for Airbus is 31.49x, which is the P/E that might be expected given factors such as its earnings growth profile, margins, industry, market value and risk characteristics.
The Fair Ratio can be more informative than a simple comparison with peers or the industry because it adjusts for those company specific drivers rather than assuming all businesses deserve the same multiple. Since Airbus’s current P/E of 25.89x is below the Fair Ratio of 31.49x, the shares appear to be trading on a lower multiple than this framework suggests.
Result: UNDERVALUED
ENXTPA:AIR P/E Ratio as at Apr 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 97 top founder-led companies.
Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced here as a simple way for you to set a story for Airbus, link that story to a forecast for revenue, earnings and margins, and then see the fair value that follows from those assumptions.
On Simply Wall St’s Community page, Narratives let you pick or build a view such as a more optimistic case where Airbus is linked to a fair value around €269 with faster growth and higher margins, or a more cautious case closer to €145 with slower growth and lower margins. You can then compare those fair values to the current share price to help you consider whether the stock appears expensive or cheap relative to your own expectations.
Because Narratives on the platform update when new information such as earnings, news or revised analyst targets arrives, you are not locked into a static model and can quickly see how fresh data affects the fair value behind your story for Airbus.
Do you think there’s more to the story for Airbus? Head over to our Community to see what others are saying!
ENXTPA:AIR 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AIR.PA.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com