P/E Ratio
Higher than 69% of Industrials sector peers
Updated 1927h ago
Sector Performance
69th percentileAAL
36.9x
Sector Median
30.5x
Sector Avg
34.5x
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 30.5x, placing it in the 69th percentile.
Who are AAL's closest peers by P/E Ratio?
The closest Industrials peers by P/E Ratio include: BLDR (32.4x), MMM (28.6x), AME (35.1x), ROP (22.1x), CARR (41.1x).
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.
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36.9x
Sector Median
30.5x
Sector Avg
34.5x
How AAL's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.