The headline number
AerCap Holdings NV currently trades at a P/E ratio of 7.38x, reflecting a valuation that remains compressed relative to its historical performance and earnings growth. The company reported strong financial results for the second quarter of 2026, leading management to raise full-year adjusted EPS guidance to approximately $16.80.
This guidance excludes potential additional gains from asset sales, which have historically provided a tailwind to bottom-line results. The market has yet to fully price in the earnings accretion stemming from the company's $1.4 billion share repurchase program executed year-to-date in 2026.
- Current Price: $150.25
- P/E Ratio: 7.38x
- 2026 Adjusted EPS Guidance: ~$16.80
- YTD 2026 Share Repurchases: >$1.4 billion
- Consensus Fair Value: $179.30
Peer comparison
AerCap maintains a dominant scale in the aircraft leasing industry that differentiates its cost of capital and fleet modernization capabilities from smaller competitors. While direct P/E comparisons are often limited by accounting differences, the forward EV/EBITDA multiples provide a clearer picture of relative valuation.
The following list highlights the valuation landscape for major players in the aircraft leasing and rental services sector.
- AerCap (AER): 7.38x P/E ratio
- Air Lease Corp (AL): N/A P/E; forward EV/EBITDA ~4.4x
- GATX Corp (GATX): N/A P/E; forward EV/EBITDA ~6.8x
- Willis Lease Finance Corp (WLFC): N/A P/E; forward EV/EBITDA ~4.7x
Bull vs bear
The investment thesis for AerCap rests on its ability to navigate supply chain constraints while maintaining high lease rate spreads. Bullish sentiment is driven by the structural shortage of aircraft, which forces airlines to extend leases and pay premium rates.
Conversely, the bear case focuses on the cyclicality of the aviation industry and the potential for macroeconomic headwinds to impact lease payments. High leverage remains a structural risk that requires careful management during periods of interest rate volatility.
- Bull: Dominant market scale allows for superior fleet modernization and high lease rate spreads.
- Bull: Aggressive share repurchases at a discount to book value drive EPS accretion.
- Bull: Persistent aircraft supply constraints support strong lease demand and asset sale gains.
- Bear: Cyclical nature of aviation leasing could lead to earnings volatility if air travel demand softens.
- Bear: High leverage levels require disciplined capital management to navigate interest rate cycles.
- Bear: Potential for future aircraft impairment charges or geopolitical disruptions impacting asset values.
Fintwit's AI verdict
The quantitative assessment of AerCap suggests that the market is currently mispricing the company's long-term earnings potential. By focusing on the delta between the current trading price and the consensus fair value, investors can identify a significant margin of safety.
The combination of share buybacks and robust lease demand creates a compelling setup for long-term holders.