American Eagle Outfitters, Inc. (AEO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-15.4%

$16.73

vs $19.77 price

Levered DCF

$15.70

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.51

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	20.81×	9.44×	23.87×	22.7×	8.96×	-18.01×	12.74×	14.14×
P/B	2.37×	1.76×	2.34×	1.78×	2.65×	3.48×	1.96×	2.87×
P/S	0.73×	0.58×	0.77×	0.57×	0.75×	1×	0.57×	0.92×
EV / EBITDA	11.83×	6.41×	10.28×	9.99×	6.73×	-46.22×	8.63×	6.52×
Gross margin	33.0%	35.3%	34.4%	30.9%	36.5%	26.2%	31.2%	32.7%
Operating margin	6.0%	8.4%	7.0%	5.5%	12.1%	0.2%	7.3%	8.4%
Net margin	3.5%	6.2%	3.2%	2.5%	8.4%	-5.6%	4.4%	6.5%
Current ratio	1.52×	1.53×	1.61×	1.43×	1.66×	1.77×	1.39×	1.93×
Debt / equity	1.02×	0.82×	0.68×	0.86×	1.27×	1.66×	1.28×	0×
Interest coverage	79.72×	374.97×	0×	3.46×	17.54×	0.34×	0×	0×
Dividend yield	2.1%	3.1%	2.1%	2.3%	3.0%	0.6%	3.8%	2.6%
Payout ratio	44.4%	29.3%	49.3%	51.8%	27.2%	-10.9%	48.5%	37.1%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	11.4%	18.6%	9.8%	7.8%	29.5%	-19.3%	15.3%	20.3%
Return on invested capital	7.0%	10.3%	8.8%	6.4%	14.0%	0.2%	8.5%	18.9%
Return on assets	4.7%	8.6%	4.8%	3.7%	11.1%	-6.1%	5.7%	13.8%
Free cash flow yield	4.9%	8.2%	10.0%	5.1%	1.9%	2.0%	8.4%	7.2%
Earnings yield	4.8%	10.6%	4.2%	4.4%	11.1%	-5.5%	7.8%	7.1%
Enterprise value	$5.5B	$4.3B	$4.9B	$4B	$5.1B	$4.7B	$3.7B	$3.4B
Net debt / EBITDA	3.21×	1.71×	1.75×	2.96×	1.8×	-9.31×	2.9×	-0.65×
Cash conversion cycle (days)	62	56	57	55	58	34	30	33