FTAI Aviation Ltd. (FTAI): fair value, margin of safety and Wheel Score

Is FTAI undervalued?

FTAI Aviation Ltd. (FTAI) closed at 168.56 on 16 Oct 2026, 27% above the GLS average fair value of 132.21. Only 2 of the 6 models that produced a number value the shares above the current price. The margin of safety is negative, so the stock fails the "below fair value" rule of the Sunday Scan; a premium of this size is common for companies whose growth the models are conservative about.

The 6 models disagree widely: Graham Number gives 20.70 while GLS Growth gives 296.15. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files FTAI under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for FTAI

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is weak: FTAI passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 4.7 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are high - ROIC 13.2%, ROE 149.9%, ROA 11.5% - with debt at 10.32 times equity and negative free cash flow. Debt of 10.32 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

The dividend yield is 1.01% with a payout ratio of 34% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Aerospace products revenue 73%, MRE Contract revenue 19%, Lease income 3% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.

Wheel Score 53: Fair

FTAI scores 53 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 1/25, Health 9/20, Moat 7/15, Premium 17/20, Stability 19/20. Value (1/25) is where the points are missing.

Implied volatility is 72% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (17 of 20) because volatility this high usually comes with a reason. Chain open interest is 39,580 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 2.2M shares a day on a market cap of $17.3B, with a beta of 1.57 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 19 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

FTAI Aviation Ltd. reports earnings on 26 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Aerospace & Defense

The 12 companies below are the closest to FTAI Aviation Ltd. by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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