Enterprise Value (EV)
Current Enterprise Value (EV)
American Airlines Group Inc., current enterprise value calculation
| Current share price (P) | $14.79 |
| No. shares of common stock outstanding | 654,756,816 |
| US$ in millions | |
| Common equity (market value)1 | 9,684) |
| Total equity | 9,684) |
| Add: Current maturities of long-term debt and finance leases (per books) | 3,632) |
| Add: Long-term debt and finance leases, net of current maturities (per books) | 29,270) |
| Total equity and debt | 42,586) |
| Less: Cash | 578) |
| Less: Short-term investments | 7,000) |
| Less: Restricted cash and short-term investments | 910) |
| Enterprise value (EV) | 34,098) |
Based on: 10-K (reporting date: 2023-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 14.79 × 654,756,816
Historical Enterprise Value (EV)
American Airlines Group Inc., EV calculation
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of American Airlines Group Inc. Annual Report.
3 2023 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 14.79 × 654,756,816
The financial trajectory from 2019 to 2023 reveals a significant shift in the capital structure and overall valuation of the entity. A general trend of declining market equity is juxtaposed against a substantial increase and subsequent partial reduction in total debt and equity obligations.
- Market Equity Trends
- A consistent downward trend is observed in the market value of common equity, which decreased from 12,070 million US$ in 2019 to 9,684 million US$ by the end of 2023. This represents a steady erosion of shareholder value over the five-year period, with the most notable declines occurring between 2021 and 2023.
- Total Capitalization and Debt Dynamics
- Total equity and debt experienced a sharp increase during the first half of the observed period, rising from 36,385 million US$ in 2019 to a peak of 49,375 million US$ in 2021. Following this peak, a gradual deleveraging process is evident, as the total figure declined to 42,586 million US$ by December 31, 2023. The divergence between the falling equity and the rising total capitalization between 2019 and 2021 indicates a substantial increase in debt levels during that window.
- Enterprise Value (EV) Analysis
- Enterprise value exhibited an initial increase, rising from 32,401 million US$ in 2019 to 36,628 million US$ in 2020. While the market value of equity declined, the EV remained elevated due to the expanded debt load. From 2021 onwards, the EV entered a period of gradual contraction, ending at 34,098 million US$ in 2023. This movement suggests that the reduction in total debt and the continued decline in equity market value have collectively exerted downward pressure on the total enterprise valuation since 2020.
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