Loar Holdings LOAR
United StatesIndustrials · Aerospace & DefenseUSD
89.80 USD (+47.2%)
5 analysts
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Loar Holdings Inc. is a manufacturer of precision-engineered components and systems for the aerospace and defense sectors, with a business model based on high-value-added products and high gross margins.
Key points
from its scores- ✓Strong growth7.7
- ✓Favourable backdrop7.3
- ✕Demanding valuation1.2
- ✕Little or no dividend1.5
- ✕Poor share-price trend2.8
AI analysis
bottom line, main risk, context and newsHold only if revenue growth is expected to persist and debt is reduced; otherwise, the current valuation offers no margin of safety.
Loar Holdings shows very strong revenue growth (39.40%) and a healthy operating margin (26.18%), but its valuation is extremely demanding (P/E 85.92, EV/EBITDA 30.61) and its balance sheet is leveraged (Net Debt/EBITDA 3.93), which in a rising rate environment limits the investment appeal.
The main risk is the combination of a very demanding valuation (P/E 85.92) with high leverage (Net Debt/EBITDA 3.93), leaving the company highly exposed to a slowdown in defense spending or an increase in financing costs.
Context and risks
Loar Holdings' business is highly concentrated in the U.S. aerospace and defense sector, a market with high dependence on public spending and subject to regulatory and budget reviews. Although its country of domicile has solid institutions, exposure to a single cyclical sector and fiscal policy adds a contextual risk not captured by financial metrics.
Is Loar Holdings stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 175% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 85.9 | 25.4 | +238% |
| EV / EBITDA | 30.6 | 14.5 | +111% |
| Price / book | 4.8 | 4.1 | +18% |
| Price / sales | 9.7 | 2.1 | +374% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 1.2 out of 10 (median for Industrials: 5.0).
Average analyst target: 89.80 USD, +47.2% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 4.7 (sector 5.8), Growth 7.7 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 85.9
- Forward P/E
- 37.8
- EV / EBITDA
- 30.6
- Price / book
- 4.8
- Price / sales
- 9.7
- PEG
- 7.27
- Market cap
- 5.7B USD
- Enterprise value
- 6.6B USD
Profitability
- ROE
- 5.8%
- ROA
- 4.9%
- ROIC (approx.)
- 7.1%
- Gross margin
- 53.4%
- Operating margin
- 26.2%
- Net margin
- 11.6%
- Free cash flow
- 82.8M USD
- FCF yield
- 1.4%
- Cash conversion
- 39%
Solvency
- Total debt
- 964.8M USD
- Net debt
- 842.4M USD
- Cash
- 122.4M USD
- EBITDA
- 214.2M USD
- Net debt / EBITDA
- 3.93
- Debt / equity
- 80.44
- Current ratio
- 4.91
- Quick ratio
- 3.07
Growth
- Revenue growth
- +39.4%
- Earnings growth
- +5.2%
- EPS (TTM)
- 0.71 USD
- EPS (forward)
- 1.61 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.64
- Analyst consensus
- none (5)
- Target price
- 89.80 USD
- 52-week range
- 53.15 – 83.43
Recent news
All LOAR news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Loar Holdings
Is Loar Holdings stock cheap or expensive?
On P/E and EV / EBITDA, it trades 175% above the Industrials median on average. Valuation score: 1.2 out of 10 (median for Industrials: 5.0). Average analyst target: 89.80 USD, +47.2% versus the price. This is not investment advice.
What score does Loar Holdings get on MeridIAn Screener?
It scores 4.2 out of 10, rank 1,940 of 2,130 (better than 9% of the companies analysed). Its strongest category is Growth (7.7) and its weakest, Valuation (1.2). Analysis of 08/10/2026.
What is Loar Holdings's P/E ratio?
Its P/E is 85.9: the share price equals 85.9 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 37.8.
How much is Loar Holdings worth on the stock market?
Its market capitalisation is 5.7B USD and its enterprise value, debt included, is 6.6B USD.
How much debt does Loar Holdings have?
Its net debt (debt minus cash) is 842.4M USD. That is 3.93 times its EBITDA; the Industrials median is 1.58.
Does Loar Holdings pay a dividend?
It pays no dividend, or almost none.
How has Loar Holdings stock performed over the last year?
It has fallen 22.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 53.15 and 83.43 USD. Past performance does not guarantee future results.
What do analysts think of Loar Holdings?
5 analysts cover it; their average recommendation is “none” and their average target is 89.80 USD (+47.2% versus the price). It is an estimate, not market data.