AerCap Holdings (NYSE:AER) just wrapped up a $1.2 billion senior notes offering, increasing its ability to invest and grow further in the aviation leasing market. Investors are watching closely as AerCap also expands its freighter fleet.

AerCap’s successful bond issuance and latest aircraft deliveries come as the company continues to benefit from positive momentum. The stock’s 1-year total shareholder return of 35.5% reflects investors’ confidence in its strategic moves and steady performance, with broader long-term returns also remaining robust.

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But with shares sitting near all-time highs, and future growth already top of mind for investors, it is worth asking whether AerCap is currently undervalued or if the market has already priced in the next stage of its ascent.

Most Popular Narrative: 5.9% Undervalued

According to the most widely followed narrative, AerCap Holdings is trading below its estimated fair value, with the current price of $124.23 compared to a narrative fair value of $132. This backdrop raises the stakes for future earnings and long-term potential.

Robust, broad-based growth in global passenger and especially international air travel, led by APAC and the Middle East, continues to drive high aircraft utilization (99%) and lease extension rates (97%), supporting stable and accelerating lease revenues.

Want the inside story behind this higher valuation? The narrative is built around a future shaped by surging demand, new growth engines, and shifting industry boundaries. Curious what key assumptions and bold forecasts fuel the consensus price? Dive in to reveal the drivers that power this bullish outlook.

Result: Fair Value of $132 (UNDERVALUED)

However, if the aircraft supply increases or market conditions weaken, lease rates could come under pressure and challenge the upbeat outlook for AerCap.

Build Your Own AerCap Holdings Narrative

If you are inspired to take a hands-on approach or want to challenge the consensus, you can craft your personal narrative using our tools in just a few minutes. Do it your way

A great starting point for your AerCap Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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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.