Airbus (ENXTPA:AIR) Valuation Check After Strong 12-Month Gains and Recent Share Price Pullback
Airbus (ENXTPA:AIR) has quietly outpaced much of the European market this year, and its recent pullback after a strong run has investors asking whether the current price still reflects long term growth potential.
See our latest analysis for Airbus.
With the share price now at €195.96, Airbus has cooled slightly after a strong year to date, but that 22.4 percent year to date share price return and 30.4 percent one year total shareholder return still point to solid underlying momentum rather than a sharp reversal.
If Airbus has sharpened your interest in the sector, this could be a moment to explore other names in the space via aerospace and defense stocks and see what else stands out.
Against that backdrop of steady growth and a share price sitting below consensus targets, the key question now is whether Airbus still trades at a meaningful discount to its fundamentals or if the market has already priced in years of expansion.
Most Popular Narrative Narrative: 13% Undervalued
With Airbus last closing at €195.96 against a narrative fair value of €224.75, the current price implies room for further upside if ambitious growth plans land as expected.
Airline fleet replacement cycles are accelerating due to increased prioritization of newer, fuel efficient, and lower emission aircraft. This supports higher demand for the A320neo family and other next generation models, with positive implications for both revenue growth and margin expansion as product mix shifts.
Curious how far these replacement cycles and higher margins could really push future earnings and valuation multiples, and what assumptions sit underneath that optimism? The full narrative breaks down the growth runway, profitability bridge, and implied re rating step by step.
Result: Fair Value of €224.75 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, stubborn supply chain bottlenecks and delays in integrating key suppliers could easily disrupt Airbus’s planned production ramp up, challenging both revenue growth and margin expectations.
Find out about the key risks to this Airbus narrative.
Another Angle On Valuation
On earnings, Airbus looks more fully priced. Its 30.5x price to earnings ratio sits just above the European Aerospace and Defense average of 30x, yet below a 34.6x fair ratio. That gap hints at upside, but also less cushion if growth expectations slip.
See what the numbers say about this price — find out in our valuation breakdown.
Build Your Own Airbus Narrative
If you see things differently or want to dig into the numbers yourself, you can build a personalised Airbus story in just minutes: Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Airbus.
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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.
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