AIRARABIA.DB
Air Arabia PJSC
Price:  
3.43 
AED
Volume:  
2,269,418
United Arab Emirates | Airlines

AIRARABIA.DB Fair Value

-52.2 %
Upside

What is the fair value of AIRARABIA.DB?

As of 2025-07-12, the Fair Value of Air Arabia PJSC (AIRARABIA.DB) is 1.64 AED. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 3.43 AED, the upside of Air Arabia PJSC is -52.2%.

Is AIRARABIA.DB a good investment?

With the market price of 3.43 AED and our fair value calculation, Air Arabia PJSC (AIRARABIA.DB) is not a good investment. Investing in AIRARABIA.DB stocks now will result in a potential loss of 52.2%.

3.43 AED
Stock Price
1.64 AED
Fair Price
FAIR VALUE CALCULATION

AIRARABIA.DB Fair Value

Peter Lynch's formula is:

AIRARABIA.DB Fair Value
= Earnings Growth Rate x TTM EPS
AIRARABIA.DB Fair Value
= 5 x 0.33
AIRARABIA.DB Fair Value
= 1.64

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income01,221.791,547.131,466.991,059
YoY growth-100%69.7%26.6%-5.2%-2.2%

AIRARABIA.DB Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Vietjet Aviation JSC47,228,5242.813.84-84%
China Express Airlines Co Ltd10,6090.31.27-84.7%
Bangkok Airways PCL26,6701.820.7163%
Asia Aviation PCL15,0350.42.0575.4%
JejuAir Co Ltd580,608-721.7-3,608.36-150.1%
Jin Air Co Ltd484,4161,401.135,028.25277.5%
Alliance Aviation Services Ltd4250.49.79270.9%
Air Busan Co Ltd255,442101.8508.92-76.8%
AirAsia X Bhd7380.41.9820.1%
Thai Airways International PCL4,846-11.7-292.93-8923.2%

AIRARABIA.DB Fair Value - Key Data

Market Cap (mil)16,007
P/E10.5x
Forward P/E20x
EPS0.33
Avg earnings growth rate-2.2%
TTM earnings1,531

AIRARABIA.DB Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.