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
- Common Equity and Total Equity
- Both common equity (market value) and total equity have shown a consistent declining trend over the five-year period. Starting at 12,070 million US dollars in 2019, the values decreased gradually each year, reaching 9,684 million US dollars by the end of 2023. This represents a cumulative reduction of approximately 19.8% over the period, indicating a steady erosion of equity value.
- Total Equity and Debt
- The total equity and debt value demonstrated an increasing trend from 2019 through 2021, rising from 36,385 million US dollars to a peak of 49,375 million in 2021. However, this was followed by a decline during 2022 and 2023, dropping to 42,586 million US dollars by the end of 2023. The initial increase suggests increased leverage or debt accumulation, while the subsequent decrease may reflect debt repayment or asset reduction.
- Enterprise Value (EV)
- Enterprise value rose from 32,401 million US dollars in 2019 to a peak of 36,628 million in 2020, then declined steadily over the following three years to 34,098 million by the end of 2023. The peak in 2020 might imply an increase in market valuation or debt at that time, yet the overall decrease after 2020 indicates a reduction in total firm value or adjustments in capital structure.
- Overall Financial Trends and Insights
- The data presents a pattern of declining equity market value alongside fluctuations in total capital structure. The rise in total equity and debt until 2021, coupled with a decline thereafter, suggests the company may have taken on more debt or increased capital to navigate challenges during the earlier years, likely influenced by external factors affecting the aviation industry. The concurrent reduction in enterprise value after 2020 highlights pressure on overall firm valuation, despite temporary increases in capital. The steady decline in equity value may raise concerns about shareholder wealth and financial health going forward.