| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 90.02 | -53 |
| Intrinsic value (DCF) | 73.59 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 73.28 | -62 |
Airbus SE (AIR.DE) is a global leader in the aerospace and defense industry, headquartered in Leiden, Netherlands. The company operates through three key segments: Airbus (commercial aircraft), Airbus Helicopters, and Airbus Defence and Space. Airbus is renowned for its commercial jetliners, including the A320 family, A350, and A380, competing directly with Boeing in the global aviation market. Its Helicopters division is a major player in civil and military rotorcraft, while the Defence and Space segment focuses on military aircraft, unmanned systems, and advanced space technologies. With a market capitalization exceeding €123 billion, Airbus is a cornerstone of the European aerospace sector, driving innovation in sustainable aviation through initiatives like hydrogen-powered aircraft and next-gen aerodynamics. The company's diversified portfolio across commercial, defense, and space markets provides resilience against cyclical downturns in any single segment.
Airbus presents a compelling investment case as the world's second-largest aircraft manufacturer with a strong order backlog and exposure to growing global air travel demand. The company benefits from the duopoly structure of the large commercial aircraft market, where it holds approximately 50% market share against Boeing. Recent financials show robust performance with €69.2 billion revenue and €4.2 billion net income in the latest fiscal year. However, investors should note the inherent cyclicality of aerospace orders, supply chain vulnerabilities, and geopolitical risks affecting defense contracts. The stock's beta of 1.2 indicates higher volatility than the broader market. Airbus's commitment to decarbonization through next-generation aircraft development could position it well for long-term sustainability trends, but execution risks remain on ambitious technological roadmaps.
Airbus maintains its competitive advantage through technological leadership in fuel-efficient aircraft design, a geographically diversified supply chain, and strong government relationships in its home markets. The company's A320neo family has been particularly successful, capturing significant market share in the crucial single-aisle segment. In defense, Airbus leverages European partnerships for programs like the Eurofighter and A400M, though it trails US competitors in pure defense spending. The space division benefits from ESA contracts and Galileo navigation system participation. Airbus's primary strength lies in its balanced commercial/defense portfolio and European government support, though this can also create inefficiencies compared to more commercial-focused peers. The company faces ongoing challenges in production ramp-ups and managing the transition to sustainable aviation technologies. Its competitive position is strongest in commercial aviation where product differentiation matters most, while in defense it competes more on political ties than pure technological edge against American giants.