American Airlines Valuation

American Airlines Group Inc -- USA Stock  

USD 51.58  0.14  0.27%

American Airlines Group shows prevailing Real Value of $52.634 per share. The current price of the firm is $51.58. At this time the firm appears to be fairly valued. Macroaxis approximates value of American Airlines Group from analyzing the firm fundamentals such as Profit Margin of 4.55% and Return On Equity of 49.77% 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 Inc Valuation Data Over Time

Net Income Per Employee    Earnings Before Interest Taxes and Depreciation Amortization EBITDA    Enterprise Value    
 Time Horizon     30 Days    Login   to change
American Airlines Group Inc is rated second in beta category among related companies. It is rated second in price to book category among related companies fabricating about  5.63  of Price to Book per Beta.
Fairly Valued
February 21, 2018
51.58
Market Value
Downside upside
52.63
Real Value
Target Price Odds
 Above  Below  
60.43
Upside
Upside 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.

Recommendations

American Airlines Analyst Recommendations
Target PriceAdvice# of Analysts
53.82Hold11Odds
American Airlines Group Inc current and past analyst recommendations published by number of research institutions as well as average analyst consensus
American Airlines Analyst Advice  

Tax Efficiency

American Airlines Group Tax Efficiency History

Tax Efficiency

Market Capitalization

American Airlines Market Capitalization Analysis
American Airlines Group Inc is rated fourth in market capitalization category among related companies. Market capitalization of Airlines industry is presently estimated at about 149.76 Billion. American Airlines retains roughly 24.53 Billion in market capitalization claiming about 16% of stocks in Airlines industry.
Capitalization  Total debt  Revenue  Valuation  Workforce

Revenue

American Airlines Group Revenue
Based on latest financial disclosure American Airlines Group Inc reported 42.21 B of revenue. This is 268.62% higher than that of the Services sector, and significantly higher than that of Airlines industry, The Revenue for all stocks is 328.68% lower than the firm.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can includes product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.