StandardAero (SARO) is back in focus after inducting its first CFM International LEAP-1B engine for SunExpress and as it prepares to present at the Farnborough International Airshow on July 20, 2026.

Despite a series of new LEAP-1B service agreements and its upcoming Farnborough appearance, StandardAero’s share price return is mixed, with a 6.13% gain over 90 days but a decline of 10.09% year to date and a 10.45% fall in 1 year total shareholder return. This suggests that recent momentum is improving after a weaker stretch.

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StandardAero looks like a solid aerospace services business on paper, yet the share price is still working through a weaker year. At around $26.65, investors may be asking whether that recent LEAP momentum is already reflected in the valuation or not.

Preferred P/E of 30.1x: Is it justified?

On simple valuation checks, StandardAero looks inexpensive relative to both its peers and the wider US Aerospace & Defense industry, even after a weaker share price year.

The preferred yardstick here is the P/E ratio. StandardAero trades on a P/E of 30.1x, which is framed as good value in the data provided. That sits below the peer average P/E of 55.6x and also below the US Aerospace & Defense industry average P/E of 38.1x, pointing to a lower price tag on each dollar of earnings than many comparable stocks carry.

For an aerospace engine services and component repair company like StandardAero, P/E is often a useful shorthand for how the market is weighing current earnings against expected future profitability. With earnings reported as high quality and profit growth over the past year far outpacing the wider industry, a comparatively lower P/E can signal that the market is not assigning the same earnings multiple as it is to faster rerating peers. At the same time, the estimated fair P/E ratio of 30.4x is very close to the current 30.1x. This suggests the current multiple is near the level the market could move towards if that fair ratio view holds.

Compared with sector and peer averages, StandardAero’s P/E sits at a discount while still aligning closely with the estimated fair ratio. This combination stands out for investors weighing earnings-based valuation signals.

Result: Price-to-Earnings of 30.1x (UNDERVALUED)

However, StandardAero’s mixed recent share price performance and the 33% gap to the analyst price target could both shift quickly if earnings quality or LEAP contract momentum disappoints.

Another View: StandardAero Through the DCF Lens

The P/E comparison suggests StandardAero is inexpensive, but the SWS DCF model points even further. At $26.65, the stock sits about 30.9% below an estimated future cash flow value of $38.56, which frames a deeper discount. Which signal should carry more weight for you?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out StandardAero for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 45 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With StandardAero showing both potential rewards and clear risks, it makes sense to act promptly, review the full data, and weigh the 5 key rewards and 1 important warning sign

Looking for more investment ideas beyond StandardAero?

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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.