AALCAUTIOUS

AAL P/E Ratio Analysis

36.9x

Higher than 73% of Industrials sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 36.9x means investors are paying $36.90 for every $1.00 of American Airlines' earnings, indicating a relatively high valuation compared to its earnings.

Sector Performance

73th percentile

AAL

36.9x

Sector Median

23.1x

Sector Avg

36.1x

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Deep Analysis

The P/E ratio of 36.9x means investors are paying $36.90 for every $1.00 of American Airlines' earnings, indicating a relatively high valuation compared to its earnings.

Among Industrials sector peers, this sits above the sector median of 32.6x, placing the stock in the 65th percentile — meaning it is more expensive than 65% of its sector peers. The metric has been completely flat over the past eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A high P/E combined with no growth in earnings multiple suggests the stock is priced for stable but not improving profitability, limiting upside potential while retaining downside risk if earnings falter. This elevated and stagnant valuation contradicts the overall CAUTIOUS verdict because the metric implies the market already prices in a premium that leaves little room for error.

Frequently Asked Questions

What does the P/E Ratio tell investors about AAL?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does AAL's P/E Ratio compare to its sector?

AAL's P/E Ratio of 36.9x compares to a Industrials sector median of 23.1x, placing it in the 73th percentile.

Who are AAL's closest peers by P/E Ratio?

The closest Industrials peers by P/E Ratio include: MMM (26.4x), POOL (19.8x), ALLE (19.6x), AVY (18.6x), AOS (17.8x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.