American Airlines Valuation Overview

AAL -- USA Stock  

USD 43.56  1.35  3.01%

American Airlines Group shows prevailing Real Value of $48.44275 per share. The current price of the firm is $43.56. At this time the firm appears to be under valued. Macroaxis approximates value of American Airlines Group from analyzing the firm fundamentals such as Profit Margin of 4.13% and Return On Equity of 144.73% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

These numbers represent the fourth quarter results and can be found on the 8-K SEC filing. Fourth quarter 2016 pre-tax profit was $500 million, or $773 million excluding net special charges. Also, total revenue per available seat mile was up 1.3 percent year-over-year, which is the first year this has happened since the fourth quarter of 2014. As a potential investor, the idea that consecutive growth is happening shows the company still has the ability to grow and maintain profitability.

Now, let us switch over to the chart and see if price is reacting in a health way. Taking a look at the monthly chart, you can see there is not a whole bunch of historical data, but from what we can tell is that price is in a range and appears to be going back to the downside. For a short position, this could be great, but we’re here for long term growth and want the company’s stock price to rise. Right now, I would wait for the price to catch some support and be sure to watch the latest numbers because that will influence price direction.

Valuation Drivers Correlation

Selected American Airlines Group Valuation Data Over Time

Net Income Per Employee    Enterprise Value    Invested Capital    
 Time Horizon     30 Days    Login   to change
American Airlines Group is rated fifth in price to book category among related companies. It is rated fifth in beta category among related companies totaling about  0.24  of Beta per Price to Book. The ratio of Price to Book to Beta for American Airlines Group is roughly  4.18 

Current Market Valuation

American Airlines Group Valuation Boundaries
Under Valued
May 27, 2018
43.56
Market Value
48.44
Real Value
Target Odds
  
53.93
Upside
American Airlines is not too volatile asset. Calculation of real value of American Airlines Group is based on 1 month time horizon. Increasing American Airlines Group time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.

Tax Efficiency

American Airlines Group Tax Efficiency History

Tax Efficiency

Market Capitalization

American Airlines Market Capitalization Analysis
American Airlines Group is rated below average in market capitalization category among related companies. Market capitalization of Airlines industry is presently estimated at about 534.94 Billion. American Airlines holds roughly 21.02 Billion in market capitalization claiming about 4% of stocks in Airlines industry.
Capitalization  Total debt  Workforce  Revenue  Valuation

Valuation Indicators

American Airlines Valuation Fundamental Ratios
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