American Eagle Valuation

AEO Stock  USD 25.14  0.39  1.58%   
At this time, the firm appears to be overvalued. American Eagle Outfitters shows a prevailing Real Value of $20.58 per share. The current price of the firm is $25.14. Our model approximates the value of American Eagle Outfitters from analyzing the firm fundamentals such as profit margin of 0.03 %, and Return On Equity of 0.1 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
2.8096
Enterprise Value
5.6 B
Enterprise Value Ebitda
9.3578
Price Sales
0.9238
Forward PE
14.1443
Overvalued
Today
25.14
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.
Historical Market  25.14 Real  20.58 Target  17.14 Hype  25.26 Naive  26.75
The real value of American Stock, also known as its intrinsic value, is the underlying worth of American Eagle Outfitters Company, which is reflected in its stock price. It is based on American Eagle's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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.
20.58
Real Value
27.65
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:
Earnings
Estimates (0)
LowProjectedHigh
0.250.260.29
Details
Hype
Prediction
LowEstimatedHigh
23.1125.2627.41
Details
Potential
Annual Dividend
LowForecastedHigh
0.200.200.21
Details
12 Analysts
Consensus
LowTarget PriceHigh
15.6017.1419.03
Details

American Eagle Investments

(273.06 Million)

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 rated fourth in last dividend paid category among related companies. It is rated third in price to earning category among related companies reporting about  60.56  of Price To Earning per Last Dividend Paid. . 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.
Last ReportedProjected for 2024
Gross Profit1.8 BB
Pretax Profit Margin 0.05  0.06 
Operating Profit Margin 0.07  0.06 
Net Profit Margin 0.03  0.06 
Gross Profit Margin 0.34  0.32 

8 Steps to conduct American Eagle's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates American Eagle's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct American Eagle's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain American Eagle's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine American Eagle's revenue streams: Identify American Eagle's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research American Eagle's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish American Eagle's growth potential: Evaluate American Eagle's management, business model, and growth potential.
  • Determine American Eagle's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate American Eagle's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
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

At this time, American Eagle's Dividend Yield is very stable compared to the past year. As of the 28th of March 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 28th of March 2024, Retained Earnings is likely to drop to about 1.3 B. In addition to that, Retained Earnings Total Equity is likely to drop to about 1.6 B
Last ReportedProjected for 2024
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(6.41) 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. 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.
Common Stock Shares Outstanding196.9 M
Quarterly Earnings Growth Y O Y-0.887
Forward Price Earnings14.1443

American Eagle Current Valuation Indicators

Valuation refers to the process of determining the present value of American Eagle Outfitters and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value American we look at many different elements of the entity such as American's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. American Eagle's valuation analysis is also 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 tightly coupled with the direction of predictive economic indicators such as signals in income.
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 the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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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.
Quarterly Earnings Growth
(0.89)
Dividend Share
0.425
Earnings Share
0.86
Revenue Per Share
26.894
Quarterly Revenue Growth
0.122
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.