Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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American Airlines Group Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2013
- Current Ratio since 2013
- Debt to Equity since 2013
- Price to Book Value (P/BV) since 2013
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Current Valuation Ratios
American Airlines Group Inc., current price multiples
| American Airlines Group Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | Transportation | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | |||||||||||
| No. shares of common stock outstanding | |||||||||||
| Earnings per share (EPS) | |||||||||||
| Operating profit per share | |||||||||||
| Sales per share | |||||||||||
| Book value per share (BVPS) | |||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | |||||||||||
| Price to operating profit (P/OP) | |||||||||||
| Price to sales (P/S) | |||||||||||
Based on: 10-K (reporting date: 2023-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
American Airlines Group Inc., historical price multiples
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio was 7.16 at the end of 2019, indicating a relatively low market valuation in comparison to earnings at that time. Data for 2020 and 2021 is not available. In 2022, there was a significant spike to 79.81, suggesting either a substantial decrease in earnings or a highly inflated stock price relative to earnings. By 2023, the ratio decreased sharply to 11.78, approaching a more moderate valuation, though still higher than the 2019 level.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio data is missing for 2019 through 2021. In 2022, the ratio was at 6.31, which then decreased to 3.19 in 2023. This downward trend suggests an improvement in operating profit relative to the stock price or a decline in stock price relative to operating profit, reflecting a potentially better operating performance or more conservative market valuation.
- Price to Sales (P/S) Ratio
- The P/S ratio increased from 0.26 in 2019 to 0.66 in 2020, which may reflect increased market valuation relative to sales during that year. Following 2020, the ratio declined to 0.38 in 2021 and further decreased to 0.21 in 2022 and 0.18 in 2023. The steady decline from 2020 through 2023 suggests either a reduction in the market valuation relative to sales or a recovery in sales volumes outpacing price gains, possibly indicating improved sales figures or a more cautious market stance over these years.
- Price to Book Value (P/BV) Ratio
- Data for the P/BV ratio is completely missing across all periods, so no trends can be analyzed or conclusions drawn in this area.
Price to Earnings (P/E)
American Airlines Group Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Transportation | ||||||
| P/E Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of American Airlines Group Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price shows a declining trend over the five-year period. It started at 28.33 US dollars at the end of 2019 and decreased significantly in 2020 to 17.99 US dollars, continuing to fall each subsequent year, reaching 14.79 US dollars by the end of 2023. This indicates a considerable reduction in market valuation over time.
- Earnings per Share (EPS) Trend
- The EPS demonstrates significant volatility and recovery over the timeline. It began with a positive value of 3.96 US dollars in 2019 but sharply declined into negative territory in 2020 with -13.89 US dollars, reflecting a substantial loss. The negative trend continued in 2021, though less severe at -3.07 US dollars. In 2022, EPS improved to a marginally positive 0.19 US dollars, further increasing to 1.26 US dollars in 2023, indicating a gradual recovery in profitability.
- Price-to-Earnings (P/E) Ratio Trends
- The P/E ratio was relatively low at 7.16 in 2019 but is not available for 2020 and 2021, likely due to negative earnings which makes the ratio non-meaningful. In 2022, the P/E ratio spiked dramatically to 79.81, consistent with the EPS moving just above zero, which often inflates valuation multiples. By 2023, the P/E ratio decreased significantly to 11.78, aligning with improved earnings and a more normalized valuation metric.
- Overall Financial Analysis
- The company experienced severe financial difficulties in 2020 and 2021, as evidenced by negative earnings per share and a sharp decline in share price. This period likely reflects external adverse conditions impacting financial performance. The gradual recovery is apparent from 2022 onward, with EPS moving into positive territory and the P/E ratio normalizing, although share price continued to decline, albeit at a slower rate. This suggests that while profitability is improving, market confidence and valuation have yet to fully recover.
Price to Operating Profit (P/OP)
American Airlines Group Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Transportation | ||||||
| P/OP Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of American Airlines Group Inc. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price shows a declining trend over the observed period. It started at $28.33 in 2019 and decreased sharply in 2020 to $17.99, possibly reflecting external challenges during that year. The downward trajectory continues, with values falling to $17.43 in 2021, $15.56 in 2022, and $14.79 in 2023. This consistent decrease indicates diminishing market valuation or investor confidence over the five-year span.
- Operating Profit Per Share Trend
- Operating profit per share exhibits significant volatility. In 2019, the figure was positive at $7.19, indicating profitability. However, there was a steep decline in 2020 to -$16.29, highlighting a substantial operating loss. In 2021, the loss narrowed sharply to -$1.63, pointing to a recovery phase. By 2022, the company returned to profitability with $2.47 per share, and this trend strengthened further in 2023, reaching $4.63. The pattern suggests a rebound from adverse conditions with gradual improvement in operating performance.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio is available for selected years and shows variability. In 2019, the ratio stood at 3.94, indicating the market price in relation to operating profit per share at that time. The ratio is absent for 2020 and 2021, likely due to negative operating profits in those years which can render the ratio meaningless or undefined. In 2022, the ratio elevated to 6.31, which despite recovering profitability, suggests a higher price multiple relative to operating profit. The figure decreased to 3.19 in 2023, corresponding with improved operating profit and a declining share price, showing a valuation correction relative to earnings.
- General Insights
- The data reflect a period of significant downturn followed by a recovery in operating profitability. Share price decline throughout the period may indicate lingering investor concerns or market skepticism despite improved earnings from 2021 onward. The changing price to operating profit ratios imply fluctuating market expectations and valuation adjustments in response to the company's financial recovery trajectory.
Price to Sales (P/S)
American Airlines Group Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Transportation | ||||||
| P/S Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Operating revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of American Airlines Group Inc. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price of the company exhibited a consistent downward trend over the five-year period. It declined sharply from $28.33 in 2019 to $17.99 in 2020, likely impacted by external market factors. The decline continued more gradually in subsequent years, reaching $14.79 by the end of 2023. This overall decrease indicates reduced market valuation or investor confidence over the period analysed.
- Sales Per Share Trend
- Sales per share experienced significant fluctuations with a notable drop from $107.42 in 2019 to $27.10 in 2020, reflecting a sharp downturn likely related to economic disruptions. However, the company showed signs of recovery in subsequent years, with sales per share increasing to $46.03 in 2021, $75.17 in 2022, and slightly rising to $80.62 in 2023. Despite this recovery, sales per share remained below 2019 levels.
- Price-to-Sales (P/S) Ratio Trend
- The P/S ratio exhibited volatility and a general downward trend from 0.26 in 2019 to 0.66 in 2020, reflecting an initial rise despite falling share prices, possibly due to the sharp decline in sales. From 2020 onwards, the ratio decreased significantly to 0.38 in 2021, then further to 0.21 in 2022, and settled at 0.18 in 2023. This decline indicates that the market valuation relative to sales has been decreasing, suggesting investors are valuing the company's sales generation capability less over time.
- Overall Insights
- The financial indicators suggest that the company faced challenges particularly in 2020, with a steep decline in both share price and sales per share. While sales per share have been on a recovery path, the share price did not mirror the same recovery, continuing to decline. The decreasing P/S ratio further highlights a potential disconnect between sales recovery and market valuation, possibly reflecting concerns about profitability, sustainability, or broader market conditions affecting investor sentiment.
Price to Book Value (P/BV)
American Airlines Group Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ deficit (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Transportation | ||||||
| P/BV Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Stockholders’ deficit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of American Airlines Group Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The financial data over the five-year period reveals several notable trends regarding the company's market valuation and equity position.
- Share Price
- The company's share price demonstrated a downward trajectory throughout the years. Starting at $28.33 at the end of 2019, it declined significantly to $17.99 in 2020, reflecting a steep drop. The share price continued to decrease in subsequent years, reaching $17.43 in 2021, $15.56 in 2022, and finally $14.79 in 2023. This consistent decline suggests diminished market confidence or underlying financial challenges over the period.
- Book Value Per Share (BVPS)
- BVPS remained negative throughout all reported years, indicating that the company had a deficit in book equity per share. Positioned at -$0.28 in 2019, the negative value deepened sharply to -$10.74 in 2020 and further to -$11.31 in 2021. Although still negative, BVPS saw a moderate recovery to -$8.90 in 2022 and improved slightly more to -$7.94 in 2023. This trend points to an initially worsening equity base, with some stabilization occurring in the last two periods.
- Price-to-Book Value (P/BV) Ratio
- No data was provided for the price-to-book value ratio across the periods, which limits the ability to assess market valuation relative to the company’s book equity directly.
In summary, the data depicts a company experiencing considerable difficulties in terms of both market valuation and balance sheet equity from 2019 to 2021, with some early signs of stabilization in the book value position in the last two years. The continuous decline in share price, however, indicates persistent investor concern or external market pressures impacting the equity valuation negatively.