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American Airlines Group (XSWX:AAL) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
American Airlines Group's Enterprise Value for the quarter that ended in Mar. 2026 was CHF27,204 Mil.
American Airlines Group's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF1,652 Mil.
* 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.
American Airlines Group EV-to-EBIT Related Terms
American Airlines Group EV-to-EBIT 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.
For the Airlines subindustry, American Airlines Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 Airlines Group EV-to-EBIT vs Transportation Industry
For the Transportation industry and Industrials sector, American Airlines Group's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where American Airlines Group's EV-to-EBIT falls into.
American Airlines Group's current Enterprise Value is CHF30,351 Mil.
American Airlines Group's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF1,652 Mil.
* 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.
American Airlines Group (XSWX:AAL) has a EV-to-EBIT of 18.38 as of Jul. 18, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on American Airlines Group and its competitors. This is 82% above median its historical median of 10.11. According to the industry distribution chart, American Airlines Group ranks #621 out of 869 companies in the Transportation industry, placing it in the top 71.5%.
Is American Airlines Group's EV-to-EBIT too high?
American Airlines Group's current EV-to-EBIT of 18.38 is 82% above median its 10-year median of 10.11. The Transportation industry median EV-to-EBIT is 12.35. American Airlines Group's value of 18.38 is 48.8% above this industry median. Based on the distribution chart, American Airlines Group ranks #621 out of 869 companies in the Transportation industry, which is below the industry midpoint. Overall, American Airlines Group has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does American Airlines Group's EV-to-EBIT compare to CPA and ALK?
According to the Transportation industry distribution chart, American Airlines Group ranks #621 out of 869 companies for EV-to-EBIT. This places American Airlines Group in the lower half of its industry. The industry median EV-to-EBIT is 12.35. American Airlines Group's value of 18.38 is 48.8% above this benchmark. While the company's 10-year median is 10.11 vs. the industry median of 12.35, American Airlines Group 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 EV-to-EBIT for a Transportation company?
The median EV-to-EBIT among Transportation companies is 12.35, based on 869 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Airlines Group's current EV-to-EBIT of 18.38 is 48.8% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on American Airlines Group and its competitors. For the Transportation industry, the median EV-to-EBIT is 12.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Airlines Group's current EV-to-EBIT is 18.38, which is 82% above median its own 10-year median of 10.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Airlines Group stock overvalued right now?
American Airlines Group (XSWX:AAL) has a current EV-to-EBIT of 18.38. The stock's GF Value™ is CHF12.40, compared to a current price of CHF12.23 — trading 1.3% below its estimated fair value. The current EV-to-EBIT is 18.38, which is 82% above median its 10-year median of 10.11 and 48.8% above the Transportation industry median of 12.35. American Airlines Group's overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For American Airlines Group (XSWX:AAL), the current EV-to-EBIT is 18.38 as of Jul. 18, 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 Airlines Group (XSWX:AAL) Overvalued in 2026?
Based on GuruFocus' analysis, American Airlines Group stock appears to be undervalued.
The current stock price of CHF12.23 is trading 1.3% below its estimated GF Value™ of CHF12.40.
Key valuation signals for XSWX:AAL:
EV-to-EBIT: 18.38 (82% above median its 10-year median of 10.11)
GF Value™: CHF12.40 vs. price of CHF12.23 (1.3% below fair value)
Industry Position: 48.8% above the Transportation median (#621 of 869)
No single metric tells the full story. See the XSWX:AAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Airlines is the world's largest airline by aircraft, capacity, and scheduled revenue passenger miles. Its major US hubs are Dallas/Fort Worth, Charlotte, Chicago, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. It generates over 30% of US airline revenue connecting Latin America with destinations in the United States. After completing a major fleet renewal, the company has the youngest average fleet of US legacy carriers.
80GF Score
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