AEO Valuation

American Eagle Outfitters Inc

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12.180

-0.32(-2.560%)1D

Overview
Forecast
Valuation
Earnings

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 Undervalued zone, suggesting that its current forward PE ratio of 11.78 is considered Undervalued compared with the five-year average of 12.53. The fair price of American Eagle Outfitters Inc (AEO) is between 12.58 to 17.66 according to relative valuation methord. Compared to the current price of 12.39 USD , American Eagle Outfitters Inc is Undervalued By 1.47%.

Relative Value

Fair Zone

12.58-17.66

Current Price：12.39

1.47%

Undervalued

11.46

Trailing

Forward

7.99

EV/EBITDA

American Eagle Outfitters Inc. (AEO) has a current EV/EBITDA of 7.99. The 5-year average EV/EBITDA is 7.76. The thresholds are as follows: Strongly Undervalued below 5.43, Undervalued between 5.43 and 6.59, Fairly Valued between 8.92 and 6.59, Overvalued between 8.92 and 10.08, and Strongly Overvalued above 10.08. The current Forward EV/EBITDA of 7.99 falls within the Historic Trend Line -Fairly Valued range.

14.62

EV/EBIT

American Eagle Outfitters Inc. (AEO) has a current EV/EBIT of 14.62. The 5-year average EV/EBIT is 12.28. The thresholds are as follows: Strongly Undervalued below 6.63, Undervalued between 6.63 and 9.45, Fairly Valued between 15.10 and 9.45, Overvalued between 15.10 and 17.93, and Strongly Overvalued above 17.93. The current Forward EV/EBIT of 14.62 falls within the Historic Trend Line -Fairly Valued range.

0.42

American Eagle Outfitters Inc. (AEO) has a current PS of 0.42. The 5-year average PS is 0.66. The thresholds are as follows: Strongly Undervalued below 0.23, Undervalued between 0.23 and 0.45, Fairly Valued between 0.88 and 0.45, Overvalued between 0.88 and 1.10, and Strongly Overvalued above 1.10. The current Forward PS of 0.42 falls within the Undervalued range.

5.82

P/OCF

American Eagle Outfitters Inc. (AEO) has a current P/OCF of 5.82. The 5-year average P/OCF is 7.85. The thresholds are as follows: Strongly Undervalued below -2.01, Undervalued between -2.01 and 2.92, Fairly Valued between 12.78 and 2.92, Overvalued between 12.78 and 17.71, and Strongly Overvalued above 17.71. The current Forward P/OCF of 5.82 falls within the Historic Trend Line -Fairly Valued range.

29.22

P/FCF

American Eagle Outfitters Inc. (AEO) has a current P/FCF of 29.22. The 5-year average P/FCF is -3.49. The thresholds are as follows: Strongly Undervalued below -141.79, Undervalued between -141.79 and -72.64, Fairly Valued between 65.66 and -72.64, Overvalued between 65.66 and 134.81, and Strongly Overvalued above 134.81. The current Forward P/FCF of 29.22 falls within the Historic Trend Line -Fairly Valued range.

American Eagle Outfitters Inc (AEO) has a current Price-to-Book (P/B) ratio of 1.51. Compared to its 3-year average P/B ratio of 1.89 , the current P/B ratio is approximately -20.26% higher. Relative to its 5-year average P/B ratio of 2.40, the current P/B ratio is about -37.10% higher. American Eagle Outfitters Inc (AEO) has a Forward Free Cash Flow (FCF) yield of approximately 9.54%. Compared to its 3-year average FCF yield of 6.97%, the current FCF yield is approximately 36.78% lower. Relative to its 5-year average FCF yield of 4.96% , the current FCF yield is about 92.07% lower.

1.47

P/B

Median3y

1.89

Median5y

2.40

9.80

FCF Yield

Median3y

6.97

Median5y

4.96

Competitors Valuation Multiple

The average P/S ratio for AEO's competitors is 0.78, providing a benchmark for relative valuation. American Eagle Outfitters Inc Corp (AEO) exhibits a P/S ratio of 0.42, which is -46.77% above the industry average. Given its robust revenue growth of -4.74%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

AEO.N

American Eagle Outfitters Inc

Victoria's Secret & Co

Performance Decomposition

Market capitalization of AEO decreased by 39.29% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 4.56 to 12.12.

The secondary factor is the Revenue Growth, contributed -4.74%to the performance.

Overall, the performance of AEO in the past 1 year is driven by P/E Change. Which is more unsustainable.

-4.74%

1.14B → 1.09B

Revenue Growth

-200.68%

5.92 → -5.96

Margin Expansion

166.13%

4.56 → 12.12

P/E Change

-39.29%