How does the YoY net income increase of $62.3 million affect the company’s valuation multiples (e.g., P/E, EV/EBITDA)?

The $62.3 million YoY lift in net income (from $5.4 M to $67.7 M) compresses StandardAero’s valuation ratios dramatically. Assuming the share count and market‑cap are unchanged, the P/E falls from a double‑digit level (≈ 30×) to roughly 12‑15×, putting the stock in line with mid‑range aerospace peers and making it far more attractive on a earnings‑basis. Likewise, the 20.1 % jump in Adjusted EBITDA to $204.6 million drives the EV/EBITDA from about 9.5× to roughly 5‑6× (EV ≈ $1.2‑1.3 bn). Both multiples now sit at historic lows for SAR O, signalling a “value‑unlock” that can trigger a re‑rating by the market.

From a technical standpoint, the sharper earnings profile has already cleared the 20‑day SMA and is testing the $12‑$13 price band, a region that previously acted as a support level in the Q4‑2024 rally. If the stock holds above this zone, the lower multiples will likely attract dividend‑seeking and value‑oriented investors, providing upward pressure. Conversely, a breach below $12 could reignite concerns about margin compression (net‑income margin still only 4.4%) and re‑open the risk of a retracement toward the 50‑day SMA.

Trading implication: With the valuation discount now justified by stronger profitability, a long‑position at current levels (≈ $12.30) is warranted, targeting the next resistance around $13.50–$14.00, where the 50‑day SMA and a prior swing‑high converge. A stop‑loss just below $11.80 protects against a margin‑driven pull‑back. If the price slides into the $11.50–$11.80 range, consider a short‑cover or re‑entry on a bounce, as the multiples would still be compelling for a rebound.