American Airlines Valuation
| AAL Stock | USD 14.64 0.28 1.88% |
At this time, the firm appears to be undervalued. American Airlines shows a prevailing Real Value of $15.69 per share. The current price of the firm is $14.64. 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 0.0275 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting American Airlines' valuation include:
Enterprise Value 40.5 B | Enterprise Value Ebitda 17.0621 | Price Sales 0.1794 | Forward PE 6.5445 | Trailing PE 34.8571 |
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.
The fair value of the American stock is determined by what a typical buyer is willing to pay for full or partial control of American Airlines Group. 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 14.64 | Real 15.69 | Target 15.14 | Hype 14.87 | Naive 15.06 |
The intrinsic value of American Airlines' stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence American Airlines' stock price.
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use American Airlines' intrinsic value based on its ongoing forecasts of American Airlines' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Airlines' closest peers.
American Airlines Cash |
|
American Valuation Trend
Knowing American Airlines' actual value is paramount for traders when making sound investment determinations. Using both American Airlines' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
American Revenue by Product
American Airlines Total Value Analysis
American Airlines Group is presently forecasted to have company total value of 40.51 B with market capitalization of 9.62 B, debt of 40.66 B, and cash on hands of 11.23 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the American Airlines fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
40.51 B | 9.62 B | 40.66 B | 11.23 B |
American Airlines Investor Information
About 57.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.2. American Airlines last dividend was issued on the 4th of February 2020. The entity had 0:1 split on the 9th of December 2013. Based on the key indicators related to American Airlines' liquidity, profitability, solvency, and operating efficiency, American Airlines Group is performing exceptionally good at this time. It has a great probability to report excellent financial results in December.American Airlines Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Airlines has an asset utilization ratio of 83.71 percent. This suggests that the Company is making $0.84 for each dollar of assets. An increasing asset utilization means that American Airlines Group is more efficient with each dollar of assets it utilizes for everyday operations.American Airlines Ownership Allocation
American Airlines holds a total of 657.13 Million outstanding shares. Over half of American Airlines' outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Please note that on June 17, 2021, Representative Patrick Fallon of US Congress acquired $100k to $250k worth of American Airlines's common stock.American Airlines Profitability Analysis
The company reported the last year's revenue of 52.79 B. Total Income to common stockholders was 822 M with profit before taxes, overhead, and interest of 11.44 B.About American Airlines Valuation
We use absolute and 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 their related drivers, we attempt to find the most accurate representation of American Airlines's intrinsic value. 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, and relevant financial multiples and ratios and then compare them to those of American Airlines's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 11.8 B | 8.5 B | |
| Pretax Profit Margin | 0.02 | 0.02 | |
| Operating Profit Margin | 0.06 | 0.06 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.22 | 0.39 |
American Airlines Growth Indicators
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 Outstanding | 719.7 M | |
| Quarterly Earnings Growth Y O Y | -0.463 | |
| Forward Price Earnings | 6.5445 |
American Airlines Current Valuation Indicators
American Airlines' valuation analysis is 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 closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Is Passenger Airlines space 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 (0.46) | Earnings Share 0.42 | Revenue Per Share 81.697 | Quarterly Revenue Growth 0.012 | Return On Assets 0.0275 |
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.