AALCAUTIOUS

AAL EV/EBITDA Analysis

11.4x

Higher than 27% of Industrials sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

Enterprise value to EBITDA (EV/EBITDA) compares a company’s total value — including debt — to its earnings before interest, taxes, depreciation, and amortization; at 11.4x, American Airlines’ valuation is well below the Industrials sector median of 19.0x, placing it in the 0th percentile among peers.

Sector Performance

27th percentile

AAL

11.4x

Sector Median

12.8x

Sector Avg

50.5x

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Deep Analysis

Over the last eight quarters the metric has been perfectly stable, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A low and stable EV/EBITDA suggests the stock carries a relative valuation discount that is not improving or worsening, which can imply limited near-term price momentum even if the business is steady. This combination of a low level and flat trend typically indicates a defensive or value-type holding rather than a growth opportunity, aligning with a cautious view because the discount may reflect persistent structural risks in the airline industry. The metric directly supports the overall CAUTIOUS verdict, as the absence of any upward movement in valuation offers no catalyst for re-rating.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AAL?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does AAL's EV/EBITDA compare to its sector?

AAL's EV/EBITDA of 11.4x compares to a Industrials sector median of 12.8x, placing it in the 27th percentile.

Who are AAL's closest peers by EV/EBITDA?

The closest Industrials peers by EV/EBITDA include: POOL (13.2x), BLDR (12.4x), AOS (11.8x), AVY (11.5x), MMM (15.4x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.