American Eagle Valuation
| AEO Stock | USD 19.24 0.66 3.55% |
At this time, the firm appears to be overvalued. American Eagle Outfitters shows a prevailing Real Value of $18.31 per share. The current price of the firm is $19.24. Our model approximates the value of American Eagle Outfitters from analyzing the firm fundamentals such as profit margin of 0.05 %, and Return On Equity of 0.15 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting American Eagle's valuation include:
Price Book 2.1061 | Enterprise Value 4.7 B | Enterprise Value Ebitda 7.0817 | Price Sales 0.6824 | Forward PE 9.542 |
Overvalued
Today
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.
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. | Historical | Market 19.24 | Real 18.31 | Target 17.14 | Hype 19.24 | Naive 19.42 |
The intrinsic value of American Eagle's 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 Eagle's 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 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: 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 Eagle's intrinsic value based on its ongoing forecasts of American Eagle's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Eagle's closest peers.
American Eagle Cash |
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American Valuation Trend
Knowing American Eagle's actual value is paramount for traders when making sound investment determinations. Using both American Eagle's 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 Eagle Total Value Analysis
American Eagle Outfitters is presently forecasted to have company total value of 4.7 B with market capitalization of 3.7 B, debt of 1.19 B, and cash on hands of 170.21 M. 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 Eagle fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.7 B | 3.7 B | 1.19 B | 170.21 M |
American Eagle Investor Information
About 94.0% of the company shares are held by institutions such as insurance companies. The book value of American Eagle was presently reported as 8.82. The company last dividend was issued on the 11th of October 2024. American Eagle Outfitters had 3:2 split on the 19th of December 2006. Based on the measurements of operating efficiency obtained from American Eagle's historical financial statements, American Eagle Outfitters is performing exceptionally good at the moment. It has a great risk to report excellent financial results in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0601 | 0.0423 |
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| Total Cash From Operating Activities | 301.8 M | 580.7 M |
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| Operating Income | 265.1 M | 222.7 M |
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American Eagle Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Eagle has an asset utilization ratio of 147.89 percent. This suggests that the Company is making $1.48 for each dollar of assets. An increasing asset utilization means that American Eagle Outfitters is more efficient with each dollar of assets it utilizes for everyday operations.American Eagle Ownership Allocation
The majority of American Eagle Outfitters outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in American Eagle Outfitters to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in American Eagle. Please pay attention to any change in the institutional holdings of American Eagle Outfitters as this could imply that something significant has changed or is about to change at the company.American Eagle Profitability Analysis
The company reported the last year's revenue of 5.26 B. Total Income to common stockholders was 170.04 M with profit before taxes, overhead, and interest of 1.75 B.American Eagle Past Distributions to stockholders
About American Eagle Valuation
We use absolute and 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 their related drivers, we attempt to find the most accurate representation of American Eagle's intrinsic value. 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, and relevant financial multiples and ratios and then compare them to those of American Eagle's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2 B | 1 B | |
| Pretax Profit Margin | 0.05 | 0.06 | |
| Operating Profit Margin | 0.04 | 0.06 | |
| Net Profit Margin | 0.03 | 0.06 | |
| Gross Profit Margin | 0.38 | 0.32 |
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
At this time, American Eagle's Dividend Yield is very stable compared to the past year. As of the 30th of November 2024, Dividend Payout Ratio is likely to grow to 1.21, though Dividends Paid is likely to grow to (79.6 M). . As of the 30th of November 2024, Earnings Yield is likely to grow to 0.1, while Retained Earnings are likely to drop about 1.3 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -83.8 M | -79.6 M | |
| Dividend Yield | 0.02 | 0.04 | |
| Dividend Payout Ratio | 0.49 | 1.21 | |
| Dividend Paid And Capex Coverage Ratio | 2.25 | (0.42) |
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 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.
| Common Stock Shares Outstanding | 196.9 M | |
| Quarterly Earnings Growth Y O Y | 0.568 | |
| Forward Price Earnings | 9.542 |
American Eagle Current Valuation Indicators
American Eagle's 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 Eagle's 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 Eagle, 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 Eagle's 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 Eagle's worth.When determining whether American Eagle Outfitters offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Eagle's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of American Eagle Outfitters Stock. Outlined below are crucial reports that will aid in making a well-informed decision on American Eagle Outfitters Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Eagle Outfitters. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Is Specialty Retail 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 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.
Quarterly Earnings Growth 0.568 | Dividend Share 0.475 | Earnings Share 1.25 | Revenue Per Share 27.689 | Quarterly Revenue Growth 0.075 |
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 if American Eagle is a good investment 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.