AEO Relative Valuation
AEO'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, AEO is overvalued; if below, it's undervalued.
Historical Valuation
American Eagle Outfitters Inc (AEO) is now in the Overvalued zone, suggesting that its current forward PE ratio of 17.23 is considered Overvalued compared with the five-year average of 12.41. The fair price of American Eagle Outfitters Inc (AEO) is between 16.69 to 23.49 according to relative valuation methord. Compared to the current price of 24.18 USD , American Eagle Outfitters Inc is Overvalued By 2.95%.
Relative Value
Fair Zone
16.69-23.49
Current Price：24.18
2.95%
Overvalued
17.23
PE
1Y
3Y
5Y
Trailing
Forward
11.00
EV/EBITDA
American Eagle Outfitters Inc. (AEO) has a current EV/EBITDA of 11.00. The 5-year average EV/EBITDA is 7.78. The thresholds are as follows: Strongly Undervalued below 5.40, Undervalued between 5.40 and 6.59, Fairly Valued between 8.97 and 6.59, Overvalued between 8.97 and 10.16, and Strongly Overvalued above 10.16. The current Forward EV/EBITDA of 11.00 falls within the Strongly Overvalued range.
18.40
EV/EBIT
American Eagle Outfitters Inc. (AEO) has a current EV/EBIT of 18.40. The 5-year average EV/EBIT is 12.29. The thresholds are as follows: Strongly Undervalued below 6.63, Undervalued between 6.63 and 9.46, Fairly Valued between 15.13 and 9.46, Overvalued between 15.13 and 17.96, and Strongly Overvalued above 17.96. The current Forward EV/EBIT of 18.40 falls within the Strongly Overvalued range.
0.75
PS
American Eagle Outfitters Inc. (AEO) has a current PS of 0.75. The 5-year average PS is 0.66. The thresholds are as follows: Strongly Undervalued below 0.22, Undervalued between 0.22 and 0.44, Fairly Valued between 0.88 and 0.44, Overvalued between 0.88 and 1.10, and Strongly Overvalued above 1.10. The current Forward PS of 0.75 falls within the Historic Trend Line -Fairly Valued range.
9.57
P/OCF
American Eagle Outfitters Inc. (AEO) has a current P/OCF of 9.57. The 5-year average P/OCF is 7.75. The thresholds are as follows: Strongly Undervalued below -2.09, Undervalued between -2.09 and 2.83, Fairly Valued between 12.67 and 2.83, Overvalued between 12.67 and 17.59, and Strongly Overvalued above 17.59. The current Forward P/OCF of 9.57 falls within the Historic Trend Line -Fairly Valued range.
21.91
P/FCF
American Eagle Outfitters Inc. (AEO) has a current P/FCF of 21.91. The 5-year average P/FCF is -4.39. The thresholds are as follows: Strongly Undervalued below -142.03, Undervalued between -142.03 and -73.21, Fairly Valued between 64.43 and -73.21, Overvalued between 64.43 and 133.25, and Strongly Overvalued above 133.25. The current Forward P/FCF of 21.91 falls within the Historic Trend Line -Fairly Valued range.
American Eagle Outfitters Inc (AEO) has a current Price-to-Book (P/B) ratio of 2.65. Compared to its 3-year average P/B ratio of 1.92 , the current P/B ratio is approximately 37.71% higher. Relative to its 5-year average P/B ratio of 2.37, the current P/B ratio is about 11.87% higher. American Eagle Outfitters Inc (AEO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 8.28%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.05% , the current FCF yield is about -100.00% lower.
2.65
P/B
Median3y
1.92
Median5y
2.37
3.74
FCF Yield
Median3y
8.28
Median5y
5.05
Competitors Valuation Multiple
The average P/S ratio for AEO's competitors is , providing a benchmark for relative valuation. American Eagle Outfitters Inc Corp (AEO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.71%, 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 AEO increased by 47.89% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.93 to 22.73.
The secondary factor is the Margin Expansion, contributed 7.89%to the performance.
Overall, the performance of AEO in the past 1 year is driven by P/E Change. Which is more unsustainable.
People Also Watch
FAQ
Is American Eagle Outfitters Inc (AEO) currently overvalued or undervalued?
What is American Eagle Outfitters Inc (AEO) fair value?
How does AEO's valuation metrics compare to the industry average?
What is the current P/B ratio for American Eagle Outfitters Inc (AEO) as of Dec 05 2025?
What is the current FCF Yield for American Eagle Outfitters Inc (AEO) as of Dec 05 2025?
What is the current Forward P/E ratio for American Eagle Outfitters Inc (AEO) as of Dec 05 2025?