AEONEUTRAL

AEO EV/EBITDA Analysis

10.2x

Higher than 53% of Consumer Cyclical sector peers

Updated 3613h ago·SEC filings & market data

Key Takeaway

The EV/EBITDA ratio measures a company’s total value (including debt) relative to its cash earnings, with a lower number often suggesting a cheaper valuation.

Sector Performance

53th percentile

AEO

10.2x

Sector Median

10.0x

Sector Avg

15.4x

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Deep Analysis

The EV/EBITDA ratio measures a company’s total value (including debt) relative to its cash earnings, with a lower number often suggesting a cheaper valuation.

At 10.2x, American Eagle Outfitters trades below the sector median of 11.2x, placing it in the 47th percentile among Consumer Cyclical peers — meaning it is slightly cheaper than about half of its industry. Because year-over-year and quarter-over-quarter changes are not available, there is no trend data to assess whether the valuation is improving or deteriorating. The combination of a below-median level with no trend information offers a neutral risk-opportunity profile: the stock is not expensive relative to peers, but without historical context, investors cannot gauge valuation momentum. This metric supports the overall NEUTRAL verdict, as the current multiple is unremarkable — neither clearly undervalued nor overvalued against the sector benchmark.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AEO?

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 AEO's EV/EBITDA compare to its sector?

AEO's EV/EBITDA of 10.2x compares to a Consumer Cyclical sector median of 10.0x, placing it in the 53th percentile.

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

The closest Consumer Cyclical peers by EV/EBITDA include: SKX (9.9x), APTV (10.3x), PHM (9.0x), CZR (9.0x), BALL (11.5x).

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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.