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American Eagle OutfittersFRA:AFG -3.85%80 Debt-to-EBITDA is 5.88 as of Apr. 2026, which is 152% above its 10-year median of 2.33. GuruFocus rates FRA:AFG with a GF Score™ of 80/100 and a GF Value™ of €18.66 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 902 Retail - Cyclical companies, American Eagle Outfitters ranks worse than 57.65% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for American Eagle Outfitters's Debt-to-EBITDA or its related term are showing as below:
FRA:AFG'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -17.66 Med: 2.33 Max: 3.23
Current: 2.91
During the past 13 years, the highest Debt-to-EBITDA Ratio of American Eagle Outfitters was 3.23. The lowest was -17.66. And the median was 2.33.
FRA:AFG's Debt-to-EBITDA is ranked worse than 57.65% of 902
companies
in the Retail - Cyclical industry
Industry Median: 2.4
vs FRA:AFG: 2.91
American Eagle Outfitters (FRA:AFG) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
American Eagle Outfitters Debt-to-EBITDA Related Terms
American Eagle Outfitters Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:AFG vs BKE, ANF, CRI: Debt-to-EBITDA Comparison
For the Apparel Retail subindustry, American Eagle Outfitters's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Eagle Outfitters Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
American Eagle Outfitters (FRA:AFG) has a Debt-to-EBITDA of 5.88 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on American Eagle Outfitters. This is 152% above median its historical median of 2.33. According to the industry distribution chart, American Eagle Outfitters ranks #520 out of 902 companies in the Retail - Cyclical industry, placing it in the top 57.6%.
Is American Eagle Outfitters' Debt-to-EBITDA too high?
American Eagle Outfitters' current Debt-to-EBITDA of 5.88 is 152% above median its 10-year median of 2.33. The Retail - Cyclical industry median Debt-to-EBITDA is 2.40. American Eagle Outfitters' value of 5.88 is 145% above this industry median. Based on the distribution chart, American Eagle Outfitters ranks #520 out of 902 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, American Eagle Outfitters has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Eagle Outfitters' Debt-to-EBITDA compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #520 out of 902 companies for Debt-to-EBITDA. This places American Eagle Outfitters in the lower half of its industry. The industry median Debt-to-EBITDA is 2.40. American Eagle Outfitters' value of 5.88 is 145% above this benchmark. While the company's 10-year median is 2.33 vs. the industry median of 2.40, American Eagle Outfitters has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.40, based on 902 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Eagle Outfitters's current Debt-to-EBITDA of 5.88 is 145% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on American Eagle Outfitters. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Eagle Outfitters's current Debt-to-EBITDA is 5.88, which is 152% above median its own 10-year median of 2.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Eagle Outfitters stock overvalued right now?
Based on GuruFocus' analysis, American Eagle Outfitters (FRA:AFG) is currently considered Modestly Undervalued. The stock's GF Value™ is €18.66, compared to a current price of €14.88 — trading 20.3% below its estimated fair value. The current Debt-to-EBITDA is 5.88, which is 152% above median its 10-year median of 2.33 and 145% above the Retail - Cyclical industry median of 2.40. American Eagle Outfitters' overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Debt-to-EBITDA is 5.88 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Eagle Outfitters (FRA:AFG) Overvalued in 2026?
Based on GuruFocus' analysis, American Eagle Outfitters stock appears to be undervalued.
The current stock price of €14.88 is trading 20.3% below its estimated GF Value™ of €18.66.
GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.
Key valuation signals for FRA:AFG:
Debt-to-EBITDA: 5.88 (152% above median its 10-year median of 2.33)
GF Value™: €18.66 vs. price of €14.88 (20.3% below fair value)
Industry Position: 145% above the Retail - Cyclical median (#520 of 902)
No single metric tells the full story. See the FRA:AFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Eagle Outfitters Inc is a specialty retailer. The company is engaged in the retail of apparel and accessories with company stores in the United States, Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has its online business. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel, accessories, and personal care products for women and men. Geographically, it generates the majority of its revenue from the United States.
80GF Score
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