AAL Relative Valuation
AAL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AAL is overvalued; if below, it's undervalued.
Historical Valuation
American Airlines Group Inc (AAL) is now in the Fair zone, suggesting that its current forward PS ratio of 13.65 is considered Fairly compared with the five-year average of 7.36. The fair price of American Airlines Group Inc (AAL) is between to according to relative valuation methord.
Relative Value
Fair Zone
-
Current Price：13.65
Fair
8.00
PE
1Y
3Y
5Y
Trailing
Forward
6.17
EV/EBITDA
American Airlines Group Inc. (AAL) has a current EV/EBITDA of 6.17. The 5-year average EV/EBITDA is 9.04. The thresholds are as follows: Strongly Undervalued below -22.99, Undervalued between -22.99 and -6.97, Fairly Valued between 25.06 and -6.97, Overvalued between 25.06 and 41.08, and Strongly Overvalued above 41.08. The current Forward EV/EBITDA of 6.17 falls within the Historic Trend Line -Fairly Valued range.
13.70
EV/EBIT
American Airlines Group Inc. (AAL) has a current EV/EBIT of 13.70. The 5-year average EV/EBIT is 4.81. The thresholds are as follows: Strongly Undervalued below -41.38, Undervalued between -41.38 and -18.28, Fairly Valued between 27.90 and -18.28, Overvalued between 27.90 and 50.99, and Strongly Overvalued above 50.99. The current Forward EV/EBIT of 13.70 falls within the Historic Trend Line -Fairly Valued range.
13.65
PS
American Airlines Group Inc. (AAL) has a current PS of 13.65. The 5-year average PS is 0.32. The thresholds are as follows: Strongly Undervalued below -2.00, Undervalued between -2.00 and -0.84, Fairly Valued between 1.48 and -0.84, Overvalued between 1.48 and 2.64, and Strongly Overvalued above 2.64. The current Forward PS of 13.65 falls within the Strongly Overvalued range.
2.19
P/OCF
American Airlines Group Inc. (AAL) has a current P/OCF of 2.19. The 5-year average P/OCF is 0.37. The thresholds are as follows: Strongly Undervalued below -20.03, Undervalued between -20.03 and -9.83, Fairly Valued between 10.57 and -9.83, Overvalued between 10.57 and 20.76, and Strongly Overvalued above 20.76. The current Forward P/OCF of 2.19 falls within the Historic Trend Line -Fairly Valued range.
4.87
P/FCF
American Airlines Group Inc. (AAL) has a current P/FCF of 4.87. The 5-year average P/FCF is -13.15. The thresholds are as follows: Strongly Undervalued below -204.61, Undervalued between -204.61 and -108.88, Fairly Valued between 82.57 and -108.88, Overvalued between 82.57 and 178.30, and Strongly Overvalued above 178.30. The current Forward P/FCF of 4.87 falls within the Historic Trend Line -Fairly Valued range.
American Airlines Group Inc (AAL) has a current Price-to-Book (P/B) ratio of -2.27. Compared to its 3-year average P/B ratio of -1.81 , the current P/B ratio is approximately 25.39% higher. Relative to its 5-year average P/B ratio of -1.69, the current P/B ratio is about 34.82% higher. American Airlines Group Inc (AAL) has a Forward Free Cash Flow (FCF) yield of approximately 9.79%. Compared to its 3-year average FCF yield of 8.78%, the current FCF yield is approximately 11.53% lower. Relative to its 5-year average FCF yield of -5.50% , the current FCF yield is about -278.01% lower.
-2.27
P/B
Median3y
-1.81
Median5y
-1.69
9.79
FCF Yield
Median3y
8.78
Median5y
-5.50
Competitors Valuation Multiple
The average P/S ratio for AAL's competitors is 53.25, providing a benchmark for relative valuation. American Airlines Group Inc Corp (AAL) exhibits a P/S ratio of 13.65, which is -74.37% above the industry average. Given its robust revenue growth of 0.32%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AAL decreased by 5.99% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.85 to 15.10.
The secondary factor is the Revenue Growth, contributed 0.32%to the performance.
Overall, the performance of AAL in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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