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American Eagle Outfitters Inc (NYSE:AEO)

12.92 USD +1.03 USD ( +8.66% )
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American Eagle Outfitters Inc Logo
American Eagle Outfitters Inc
NYSE:AEO
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DCF Value

Estimated DCF Value of one AEO stock under the base case scenario is 25.52 USD. Compared to the current market price of 12.92 USD, the stock is Undervalued by 49%.

Estimated DCF Value of one NYSE:AEO stock is 25.52 USD. Compared to the current market price of 12.92 USD, the stock is Undervalued by 49% .

DCF valuation is one of two methods of placing a monetary value on a company; the other is Relative Valuation method. We use a combination of these two methods to calculate the Intrinsic Value of stock as accurately as possible.

Discount Rate
8.16%
Terminal Growth
0%
Growth Period
5 Years
Discount Rate
8.16%
Terminal Growth
0%
Growth Period
5 Years

You can change any inputs, such as future revenue, using Present Value Calculation block.

AEO DCF Value
Base Case
25.52 USD
Undervaluation 49%
DCF Value
Price
Worst Case
Base Case
Best Case
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American Eagle Outfitters Inc Competitors:
DCF Valuation
CATO
Cato Corp
2726
PAL Group Holdings Co Ltd
7606
United Arrows Ltd
7445
Right On Co Ltd
HLG
Hallenstein Glasson Holdings Ltd
BKE
Buckle Inc
DBI
Designer Brands Inc
PMV
Premier Investments Ltd

DCF Value Calculation

Capital Structure
From Present Value to DCF Value

Present Value 4.3B USD
Equity Value 4.3B USD
/ Shares Outstanding 169M
AEO DCF Value 25.52 USD
Undervalued by 49%

To view the process of calculating the Present Value of American Eagle Outfitters Inc' future free cash flow, see the Present Value Calculation block.

Present Value Calculation

Discounted Cash Flow Model
Present Value of Free Cash Flow

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To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Model Financials
Financials used in the DCF Model

Sensitivity Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Analyze the possible values of AEO stock DCF Value given various model inputs such as Revenue Growth, Operating Margin, and Discount Rate.

See Also

Similar Stocks

AEO Stock DCF Valuation FAQ

What is the DCF value of one AEO stock?

Estimated DCF Value of one AEO stock under the base case scenario is 25.52 USD. Compared to the current market price of 12.92 USD, the stock is Undervalued by 49%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock intrinsic values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project American Eagle Outfitters Inc's future free cash flow and discount it at a selected discount rate to calculate its Present Value (4.3B USD).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 25.52 USD per one AEO share.