American Stock Valuation

AEO
 Stock
  

USD 10.04  0.35  3.37%   

What is the current enterprise value of American Eagle Outfitters? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as American Eagle, is its stock price multiplied by the total number of shares outstanding, calculating American Eagle's enterprise value requires a different approach. It uses American Eagle's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
American Eagle Outfitters shows a prevailing Real Value of $15.35 per share. The current price of the firm is $10.04. At this time, the firm appears to be undervalued. Our model approximates the value of American Eagle Outfitters from analyzing the firm fundamentals such as return on equity of 27.82 %, and Profit Margin of 7.07 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
American Eagle Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as American Eagle's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 10.04
Please note that American Eagle's price fluctuation is not too volatile at this time. Calculation of the real value of American Eagle Outfitters is based on 3 months time horizon. Increasing American Eagle's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for American Eagle Outfitters 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 Eagle. Since American Eagle is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Eagle's 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.
15.35
Real Value
18.70
Upside
Estimating the potential upside or downside of American Eagle Outfitters 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 Eagle more accurately as focusing exclusively on American Eagle's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
10.1111.0011.89
Details
Hype
Prediction
LowEstimated ValueHigh
6.6910.0413.39
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.380.450.52
Details
11 Analysts
Consensus
LowTarget PriceHigh
26.0033.0845.00
Details

American Eagle Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining American Eagle's current stock value. Our valuation model uses many indicators to compare American Eagle value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Eagle competition to find correlations between indicators driving American Eagle's intrinsic value. More Info.
American Eagle Outfitters is number one stock in price to sales category among related companies. It is number one stock in last dividend paid category among related companies creating about  2.12  of Last Dividend Paid per Price to Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Eagle by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Eagle's 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 Eagle's 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 Eagle's 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 Eagle and how it compares across the competition.

About American Eagle Valuation

The stock valuation mechanism determines the current worth of American Eagle Outfitters on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American Eagle Outfitters. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Eagle Outfitters based exclusively on its fundamental and basic technical indicators. By analyzing American Eagle'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 Eagle'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 Eagle. We calculate exposure to American Eagle's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Eagle's related companies.
American Eagle Outfitters, Inc. operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle and Aerie brands. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania. American Eagle operates under Apparel Retail classification in the United States and is traded on New York Stock Exchange. It employs 7200 people.
American Eagle's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether American Eagle's value is low or high relative to the company's performance and growth projections. Determining the market value of American Eagle can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of American Eagle represents a small ownership stake in the entity. As a stockholder of American, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

American Eagle Dividends Analysis For Valuation

There are various types of dividends American Eagle can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of American shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from American Eagle Outfitters directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American Eagle by the value of the dividends paid out.

American Eagle Valuation Growth Rates

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 Eagle 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.
Quick Ratio0.62
Earnings Quarterly Growth-66.80%
Revenue Growth2.00%
Payout Ratio41.62%
Enterprise Value To Ebitda5.33
Earnings Growth-65.30%
Enterprise Value To Revenue0.73
Please continue to Trending Equities. Note that the American Eagle Outfitters information on this page should be used as a complementary analysis to other American Eagle's 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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Complementary Tools for American Stock analysis

When running American Eagle Outfitters price analysis, check to measure American Eagle's 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 Eagle is operating at the current time. Most of American Eagle's value examination focuses on studying past and present price action to predict the probability of American Eagle's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Eagle's price. Additionally, you may evaluate how the addition of American Eagle to your portfolios can decrease your overall portfolio volatility.
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Is American Eagle's 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 Eagle. 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 Eagle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of American Eagle Outfitters 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 Eagle's value that differs from its market value or its book value, called intrinsic value, which is American Eagle's 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 Eagle's market value can be influenced by many factors that don't directly affect American Eagle's 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 Eagle's value and its price as these two are different measures arrived at by different means. Investors typically determine American Eagle value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Eagle's 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.