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American Airlines Group Inc
NASDAQ:AAL

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American Airlines Group Inc
NASDAQ:AAL
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Price: 11.78 USD 2.43% Market Closed
Market Cap: $7.8B

EV/OCF

7
Current
2%
Cheaper
vs 3-y average of 7.2

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
7
=
Enterprise Value
$27B
/
Operating Cash Flow
$3.8B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
7
=
Enterprise Value
$27B
/
Operating Cash Flow
$3.8B

Valuation Scenarios

American Airlines Group Inc is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (7.2), the stock would be worth $11.98 (2% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-8%
Maximum Upside
+137%
Average Upside
32%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 7 $11.78
0%
3-Year Average 7.2 $11.98
+2%
5-Year Average 7 $11.65
-1%
Industry Average 6.5 $10.87
-8%
Country Average 16.7 $27.91
+137%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close

Market Distribution

Lower than 89% of companies in the United States of America
Percentile
11th
Based on 9 518 companies
11th percentile
7
Low
0 — 11.7
Typical Range
11.7 — 23.6
High
23.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 11.7
Median 16.7
70th Percentile 23.6
Max 3 178 983.5

American Airlines Group Inc
Glance View

American Airlines Group Inc., a linchpin in the aviation industry, soars across the skies, operating as an emblematic carrier that bridges countless destinations. Born from a legacy of mergers and acquisitions, the most significant being with US Airways in 2013, this entity has navigated the turbulent skies of economic ups and downs to maintain its status as a keystone in international travel. The company's backbone is its extensive fleet, one of the largest in the world, serving over hundreds of locations globally. American Airlines capitalizes on its vast network, creating a web of connections that cater to various travelers, from business professionals to leisure explorers. With hubs in strategic locations like Dallas/Fort Worth, Charlotte, and Miami, American Airlines ensures it remains a pivotal player in the world's travel agenda. The financial engine of American Airlines is driven predominantly by passenger revenues, which account for the lion's share of its income. The airline employs a complex pricing strategy, leveraging data analytics to set dynamic ticket prices based on demand, timing, and competition. Additionally, the loyalty program, AAdvantage, serves as a crucial financial pillar, encouraging repeat business and opening ancillary revenue streams. Through partnerships and alliances such as the oneworld alliance, American Airlines expands its market reach without the need for additional aircraft, thus optimizing operational efficiency. Though competing in a notoriously challenging industry with razor-thin margins, American Airlines navigates this landscape by balancing operational costs and enhancing customer experience, aiming to secure its position as a leading airline globally.

AAL Intrinsic Value
39.75 USD
Undervaluation 70%
Intrinsic Value
Price $11.78
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