Is FTAI Aviation Ltd. overvalued or undervalued?

As of 29 July 2025, the valuation grade for FTAI Aviation Ltd. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears fairly valued based on its current metrics, with a P/E ratio of 35.21, an EV/EBITDA of 22.02, and a PEG ratio that is not applicable. In comparison, its peers in the aerospace and defense sector exhibit varying valuations, with notable competitors showing lower P/E ratios, suggesting that FTAI may be on the higher end of the valuation spectrum.
The stock has demonstrated strong performance relative to the S&P 500, with a year-to-date return of 23.69% compared to the index's 12.22%, and an impressive three-year return of 947.44% versus 70.41% for the S&P 500. This performance reinforces the notion that FTAI Aviation Ltd. is fairly valued, reflecting its growth potential in the market.