American Airlines Group Stock Current Valuation
| AAL Stock | USD 14.11 0.09 0.64% |
Valuation analysis of American Airlines helps investors to measure American Airlines' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. Enterprise Value is expected to rise to about 16.4 B this year, although Enterprise Value Over EBITDA will most likely fall to 6.37. Fundamental drivers impacting American Airlines' valuation include:
Enterprise Value 41.5 B | Enterprise Value Ebitda 7.5535 | Price Sales 0.1631 | Forward PE 4.9164 | Trailing PE 11.5868 |
Undervalued
Today
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 14.65 | Target 15.14 | Hype 14.01 |
The real value of American Stock, also known as its intrinsic value, is the underlying worth of American Airlines Company, which is reflected in its stock price. It is based on American Airlines' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of American Airlines' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value 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 American Airlines' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: American Airlines Group Company Current Valuation Analysis
American Airlines' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current American Airlines Current Valuation | 41.46 B |
Most of American Airlines' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, American Airlines Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
American Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for American Airlines is extremely important. It helps to project a fair market value of American Stock properly, considering its historical fundamentals such as Current Valuation. Since American Airlines' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of American Airlines' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of American Airlines' interrelated accounts and indicators.
Click cells to compare fundamentals
American Current Valuation Historical Pattern
Today, most investors in American Airlines Stock are looking for potential investment opportunities by analyzing not only static indicators but also various American Airlines' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of American Airlines current valuation as a starting point in their analysis.
American Airlines Current Valuation |
| Timeline |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, American Airlines Group has a Current Valuation of 41.46 B. This is much higher than that of the Passenger Airlines sector and 159.02% higher than that of the Industrials industry. The current valuation for all United States stocks is 149.38% lower than that of the firm.
American Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American Airlines' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of American Airlines could also be used in its relative valuation, which is a method of valuing American Airlines by comparing valuation metrics of similar companies.American Airlines is currently under evaluation in current valuation category among related companies.
American Airlines ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, American Airlines' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to American Airlines' managers, analysts, and investors.Environment Score | Governance Score | Social Score |
American Fundamentals
| Return On Asset | 0.0396 | ||||
| Profit Margin | 0.02 % | ||||
| Operating Margin | 0.05 % | ||||
| Current Valuation | 41.46 B | ||||
| Shares Outstanding | 654.76 M | ||||
| Shares Owned By Insiders | 1.80 % | ||||
| Shares Owned By Institutions | 53.04 % | ||||
| Number Of Shares Shorted | 40.56 M | ||||
| Price To Earning | 7.08 X | ||||
| Price To Sales | 0.16 X | ||||
| Revenue | 52.79 B | ||||
| Gross Profit | 11.44 B | ||||
| EBITDA | 6.26 B | ||||
| Net Income | 822 M | ||||
| Cash And Equivalents | 11.23 B | ||||
| Cash Per Share | 17.28 X | ||||
| Total Debt | 40.66 B | ||||
| Debt To Equity | 7.53 % | ||||
| Current Ratio | 0.79 X | ||||
| Book Value Per Share | (7.95) X | ||||
| Cash Flow From Operations | 3.8 B | ||||
| Short Ratio | 1.40 X | ||||
| Earnings Per Share | 1.21 X | ||||
| Price To Earnings To Growth | 0.28 X | ||||
| Target Price | 17.5 | ||||
| Number Of Employees | 132.1 K | ||||
| Beta | 1.57 | ||||
| Market Capitalization | 9.18 B | ||||
| Total Asset | 63.06 B | ||||
| Retained Earnings | (7.69 B) | ||||
| Working Capital | (8.49 B) | ||||
| Current Asset | 9.98 B | ||||
| Current Liabilities | 13.61 B | ||||
| Five Year Return | 1.27 % | ||||
| Net Asset | 63.06 B |
About American Airlines Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American Airlines Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Airlines using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Airlines Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with American Airlines
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Airlines position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to American Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Airlines when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Airlines - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Airlines Group to buy it.
The correlation of American Airlines is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Airlines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Airlines can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out American Airlines Piotroski F Score and American Airlines Altman Z Score analysis. 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Complementary Tools for American Stock analysis
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.