American Airlines Valuation

AAL Stock  USD 14.11  0.15  1.07%   
At this time, the firm appears to be fairly valued. American Airlines shows a prevailing Real Value of $14.67 per share. The current price of the firm is $14.11. Our model approximates the value of American Airlines from analyzing the firm fundamentals such as operating margin of 0.05 %, and Return On Asset of 0.0396 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Enterprise Value
42.2 B
Enterprise Value Ebitda
7.6495
Price Sales
0.175
Forward PE
5.2192
Trailing PE
11.6612
Fairly Valued
Today
14.11
Please note that American Airlines' price fluctuation is not too volatile at this time. Calculation of the real value of American Airlines is based on 3 months time horizon. Increasing American Airlines' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for American Airlines Group is useful when determining the fair value of the American stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Airlines. Since American Airlines is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Airlines' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  14.11 Real  14.67 Target  15.14 Hype  14.11
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
14.67
Real Value
17.51
Upside
Estimating the potential upside or downside of American Airlines Group helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Airlines more accurately as focusing exclusively on American Airlines' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
-0.35-0.26-0.17
Details
Hype
Prediction
LowEstimatedHigh
11.2714.1116.95
Details
20 Analysts
Consensus
LowTarget PriceHigh
13.7815.1416.81
Details

American Airlines Investments

(527.1 Million)

American Airlines Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining American Airlines's current stock value. Our valuation model uses many indicators to compare American Airlines value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Airlines competition to find correlations between indicators driving American Airlines's intrinsic value. More Info.
American Airlines Group is rated below average in price to sales category among related companies. It is rated second in net asset category among related companies making up about  360,331,428,571  of Net Asset per Price To Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Airlines by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Airlines' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Airlines' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates American Airlines' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in American Airlines and how it compares across the competition.

About American Airlines Valuation

The stock valuation mechanism determines the current worth of American Airlines Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American Airlines Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Airlines based exclusively on its fundamental and basic technical indicators. By analyzing American Airlines's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of American Airlines's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Airlines. We calculate exposure to American Airlines's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Airlines's related companies.
Last ReportedProjected for 2024
Gross Profit11.8 B8.5 B
Pretax Profit Margin 0.02  0.02 
Operating Profit Margin 0.08  0.08 
Net Profit Margin 0.02  0.02 
Gross Profit Margin 0.22  0.39 

8 Steps to conduct American Airlines' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates American Airlines' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct American Airlines' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain American Airlines' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine American Airlines' revenue streams: Identify American Airlines' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research American Airlines' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish American Airlines' growth potential: Evaluate American Airlines' management, business model, and growth potential.
  • Determine American Airlines' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate American Airlines' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

American Airlines Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as American Airlines does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding719.7 M
Quarterly Earnings Growth Y O Y-0.974
Forward Price Earnings5.2192

American Airlines Current Valuation Indicators

Valuation refers to the process of determining the present value of American Airlines Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value American we look at many different elements of the entity such as American's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. American Airlines' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final American Airlines' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as American Airlines, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use American Airlines' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes American Airlines' worth.
When determining whether American Airlines is a strong investment it is important to analyze American Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Airlines' future performance. For an informed investment choice regarding American Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Airlines Group. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the American Airlines information on this page should be used as a complementary analysis to other American Airlines' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running American Airlines' price analysis, check to measure American Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Airlines is operating at the current time. Most of American Airlines' value examination focuses on studying past and present price action to predict the probability of American Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Airlines' price. Additionally, you may evaluate how the addition of American Airlines to your portfolios can decrease your overall portfolio volatility.
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Is American Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Airlines. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.97)
Earnings Share
1.21
Revenue Per Share
80.764
Quarterly Revenue Growth
(0.01)
Return On Assets
0.0396
The market value of American Airlines is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Airlines' value that differs from its market value or its book value, called intrinsic value, which is American Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Airlines' market value can be influenced by many factors that don't directly affect American Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.