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 0.00 is considered Fairly compared with the five-year average of 7.44. The fair price of American Airlines Group Inc (AAL) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：14.34
Fair
8.62
PE
1Y
3Y
5Y
Trailing
Forward
6.25
EV/EBITDA
American Airlines Group Inc. (AAL) has a current EV/EBITDA of 6.25. The 5-year average EV/EBITDA is 9.25. The thresholds are as follows: Strongly Undervalued below -22.20, Undervalued between -22.20 and -6.47, Fairly Valued between 24.98 and -6.47, Overvalued between 24.98 and 40.71, and Strongly Overvalued above 40.71. The current Forward EV/EBITDA of 6.25 falls within the Historic Trend Line -Fairly Valued range.
14.20
EV/EBIT
American Airlines Group Inc. (AAL) has a current EV/EBIT of 14.20. The 5-year average EV/EBIT is 5.21. The thresholds are as follows: Strongly Undervalued below -40.66, Undervalued between -40.66 and -17.72, Fairly Valued between 28.14 and -17.72, Overvalued between 28.14 and 51.08, and Strongly Overvalued above 51.08. The current Forward EV/EBIT of 14.20 falls within the Historic Trend Line -Fairly Valued range.
0.17
PS
American Airlines Group Inc. (AAL) has a current PS of 0.17. The 5-year average PS is 0.21. The thresholds are as follows: Strongly Undervalued below 0.03, Undervalued between 0.03 and 0.12, Fairly Valued between 0.31 and 0.12, Overvalued between 0.31 and 0.40, and Strongly Overvalued above 0.40. The current Forward PS of 0.17 falls within the Historic Trend Line -Fairly Valued range.
1.92
P/OCF
American Airlines Group Inc. (AAL) has a current P/OCF of 1.92. The 5-year average P/OCF is 0.46. The thresholds are as follows: Strongly Undervalued below -19.78, Undervalued between -19.78 and -9.66, Fairly Valued between 10.58 and -9.66, Overvalued between 10.58 and 20.71, and Strongly Overvalued above 20.71. The current Forward P/OCF of 1.92 falls within the Historic Trend Line -Fairly Valued range.
7.49
P/FCF
American Airlines Group Inc. (AAL) has a current P/FCF of 7.49. The 5-year average P/FCF is -12.77. The thresholds are as follows: Strongly Undervalued below -203.01, Undervalued between -203.01 and -107.89, Fairly Valued between 82.34 and -107.89, Overvalued between 82.34 and 177.46, and Strongly Overvalued above 177.46. The current Forward P/FCF of 7.49 falls within the Historic Trend Line -Fairly Valued range.
American Airlines Group Inc (AAL) has a current Price-to-Book (P/B) ratio of -2.39. Compared to its 3-year average P/B ratio of -1.84 , the current P/B ratio is approximately 30.07% higher. Relative to its 5-year average P/B ratio of -1.70, the current P/B ratio is about 40.53% higher. American Airlines Group Inc (AAL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 9.20%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -4.26% , the current FCF yield is about -100.00% lower.
-2.39
P/B
Median3y
-1.84
Median5y
-1.70
9.18
FCF Yield
Median3y
9.20
Median5y
-4.26
Competitors Valuation Multiple
The average P/S ratio for AAL's competitors is , providing a benchmark for relative valuation. American Airlines Group Inc Corp (AAL) exhibits a P/S ratio of , which is NaN% 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 17.73% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.00 to 15.87.
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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