AEONEUTRAL

EV/EBITDA

10.2x

Higher than 45% of Consumer Cyclical sector peers

Updated 1054h ago

Sector Performance

45th percentile

AEO

10.2x

Sector Median

11.5x

Sector Avg

14.9x

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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 11.5x, placing it in the 45th percentile.

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

The closest Consumer Cyclical peers by EV/EBITDA include: PDD (7.6x), PVH (7.2x), BBY (7.0x), BBWI (6.0x), ANF (5.7x).

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.