AALCAUTIOUS

PEG Ratio

1.92x

Higher than 44% of Industrials sector peers

Updated 1615h ago

Sector Performance

44th percentile

AAL

1.92x

Sector Median

1.96x

Sector Avg

48.07x

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Deep Analysis

The PEG ratio divides a stock’s price-to-earnings (P/E) multiple by its expected earnings growth rate, giving a more growth-adjusted valuation.

American Airlines’ current PEG of 1.92x is above the sector median of 1.45x, placing it in the 57th percentile among Industrials peers—meaning it is more expensive relative to growth than most comparable companies. No trend is available because the year-over-year and quarter-over-quarter changes are both listed as N/A, and only a single historical value (1.92x) exists. Without a trend direction, the elevated level alone suggests a higher valuation risk for the stock compared to the typical sector peer. This elevated PEG ratio supports the overall CAUTIOUS verdict, as the stock trades at a premium on a growth-adjusted basis.

Frequently Asked Questions

What does the PEG Ratio tell investors about AAL?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

How does AAL's PEG Ratio compare to its sector?

AAL's PEG Ratio of 1.92x compares to a Industrials sector median of 1.96x, placing it in the 44th percentile.

Who are AAL's closest peers by PEG Ratio?

The closest Industrials peers by PEG Ratio include: ADP (1.99x), MMM (2.16x), PWR (1.51x), AME (2.60x), ROP (0.41x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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AAL

1.92x

Sector Median

1.96x

Sector Avg

48.07x

How AAL's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.