American Airlines Valuation Overview

AAL -- USA Stock  

USD 33.00  0.96  3.00%

American Airlines shows prevailing Real Value of $43.7352 per share. The current price of the firm is $33.0. At this time the firm appears to be under valued. Macroaxis approximates value of American Airlines from analyzing the firm fundamentals such as Profit Margin of 2.62% and Return On Equity of 67.93% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

These numbers represent the fourth quarter results and can be found on the 8-K SEC filing. Fourth quarter 2016 pre-tax profit was $500 million, or $773 million excluding net special charges. Also, total revenue per available seat mile was up 1.3 percent year-over-year, which is the first year this has happened since the fourth quarter of 2014. As a potential investor, the idea that consecutive growth is happening shows the company still has the ability to grow and maintain profitability.

Now, let us switch over to the chart and see if price is reacting in a health way. Taking a look at the monthly chart, you can see there is not a whole bunch of historical data, but from what we can tell is that price is in a range and appears to be going back to the downside. For a short position, this could be great, but we’re here for long term growth and want the company’s stock price to rise. Right now, I would wait for the price to catch some support and be sure to watch the latest numbers because that will influence price direction.

Investments

Valuation Drivers Correlation

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American Airlines Group Valuation Data Drivers
Net Income Per Employee    Enterprise Value    Market Capitalization    

American Airlines Market Cap

American Airlines Group is rated fourth in market capitalization category among related companies. Market capitalization of Airlines industry is presently estimated at about 130.54 Billion. American Airlines retains roughly 14.95 Billion in market capitalization claiming about 11% of stocks in Airlines industry.
Capitalization  Revenue  Valuation  Workforce  Total debt
Horizon     30 Days    Login   to change
American Airlines Group is rated below average in price to sales category among related companies. It is rated fourth in beta category among related companies totaling about  4.26  of Beta per Price to Sales.

Current Market Valuation

American Airlines Valuation Boundaries

Under Valued
December 18, 2018
33.00
Market Value
43.74
Real Value
Target Odds
  
53.52
Upside
American Airlines is not too volatile asset. Calculation of real value of American Airlines is based on 2 months time horizon. Increasing American Airlines time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.

Valuation Basics

American Airlines Enterprise Value Fundamentals

Quick Ratio0.43
Earnings Quarterly Growth-48.40%
Revenue Growth5.40%
Payout Ratio16.13%
Enterprise Value To Ebitda6.22
Earnings Growth-45.60%
Enterprise Value To Revenue0.81

Valuation Indicators

American Airlines Valuation Fundamental Ratios

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