Aircraft valuation and the projection of its future price is an intricate process. This paper provides a comprehensive review of aircraft valuation. It presents a methodology that will more accurately measure return on investment, improve the efficiency of managing operating costs, and more effectively determine yield analysis. The value of an aircraft depends on internal factors that are directly related to the aircraft’s documentation and specifications. Some examples of these are age, aircraft size, seat capacity, fuel efficiency, and technical status. In addition, the aircraft price depends on the external factors, such as market demand and its elasticity, fuel cost, and environmental regulations. The external factors are extremely important because they indicate where in the aviation industry cycle the aircraft is and this, in turn, has the greatest impact on aircraft value. The theoretical value calculated in this paper is highly responsive to the assumptions underlying the valuation model.