American Eagle Outfitters Inc (AEO) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of American Eagle Outfitters Inc stock $22.30, price $19.92, upside +11.9%, quality 64 out of 100. Rating: undervalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 9, 2026.
How to read this chart
60‑month range $8.71 – $30.54 · fair‑value band $15.61 – $28.99 · the $19.92 price screens below the $22.30 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 9, 2026.
Follow American Eagle Outfitters in your weekly email
Every Wednesday you see whether American Eagle Outfitters is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer in the United States and internationally.
Show moreShow less
It provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands.
The company also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand.
It sells its products through its own and licensed retail stores, concession-based shops-within-shops, wholesale markets, and online marketplaces; and digital channels, such as www.ae.com, www.aerie.com, www.toddsnyder.com, and www.unsubscribed.com.
American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.
Stock analysis
American Eagle Outfitters Inc (AEO) currently trades at $19.92, while our model-based Fair Value estimate is $22.30, implying the stock looks roughly 11% undervalued today.
Show more
Valuation
Bull case: the DCF Models group reads highest at a median of $25.86 per share, and 13 of the 25 models we run sit above the $19.92 price.
Bear case: the Asset-Based group reads lowest at $5.71, and 12 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $15.61 (bear) to $28.99 (bull), the price of $19.92 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
American Eagle Outfitters Inc reported revenue of $5.5B in FY2026 versus $5.0B in FY2022, a compound +2.3%/yr. Reported net income was $192M in FY2026, compounding −17.8%/yr from FY2022.
Key figures
Market cap $3.5B Mid · P/E ratio 10.2 · P/S ratio 0.61 · EPS (TTM) $1.95 · Dividend yield 2.5% · Net margin 5.9% · Return on equity 20.0% · Return on assets (EBIT) 10.8% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 27% below its 52-week high and 38% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −18% fair-value upside, at 12%, AEO screens cheaper than that median.
Fair Value models
Bear$15.61Fair Value $22.30Bull$28.99
Price $19.92 · Upside +11.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($1.12 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 3 officers or directors sold shares worth $326,388 and none bought.
SaleCary D McMillanDirector4× since Jan 14, 2026: 11,292 shares, avg. $18.93$213,809Oct 6, 2026
SaleNoel Joseph SpiegelDirector4× since Jan 21, 2026: 11,292 shares, avg. $18.70$211,131Oct 2, 2026
SaleDavid M. SableDirector5,779 shares at $17.23$99,572Jul 17, 202610b5-1 plan
SaleJay L SchottensteinExec Chairman & CEO, Director1,048,579 shares at $25.57$26.8MJan 22, 2026
SaleJames H Keefer JRSVP, Controller & CAO5,742 shares at $23.49$134,869Dec 9, 2025
SaleMarisa BaldwinEVP - CHRO61,319 shares at $22.41$1.4MDec 8, 2025
SaleJennifer M. FoyleGlobal Brand President-aerie243,047 shares at $24.30$5.9MDec 5, 2025
SaleMichael A. MathiasEVP and CFO186,580 shares at $24.05$4.5MDec 5, 2025
Plus 9 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.76/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+3.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.9%
Start year 2021 (pandemic). Over 10 years: +4.6% a year
Revenue growth 33 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.1%
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−4.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year−7.1%
Dividend (yield on the price)2.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−7.1% vs −0.2%, slowing
Profit margin 2020 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 6%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+7.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +5.3% a year for the price and +1.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Resilience comes from strong growth at newer lines Aerie and OFFLINE, while the main weakness is continued inconsistency and the need for a sustained turnaround at the core American Eagle brand.
Main risk: Ongoing retail cyclical pressures could slow the core brand recovery and reduce overall portfolio resilience by hitting sales consistency and margins.
American Eagle's portfolio shows clear divergence, with Aerie and OFFLINE posting 19 percent comparable sales growth in the latest quarter while the namesake brand improved sequentially but declined overall. This mix provides some resilience, yet the business still depends heavily on turning around consistency at the core brand amid broader retail pressures. Our models see it as undervalued. Will the growth at the newer lines offset ongoing challenges at American Eagle or does the flagship need to match their pace for lasting strength?
Compare American Eagle Outfitters Inc with another stock
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Apparel Retail · 101 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score64 · Above median
Fair Value upside+11.9% · Below median
Profitability
Return on equity (12 months)20.0% · Above median
Return on assets4.8% · Above median
Net margin (12 months)5.9% · Above median
Operating margin (12 months)2.1% · Below median
Growth and dividend
Revenue growth (quarter YoY)7.5% · Above median
Dividend yield (12 months)2.5% · Below median
Valuation Multiplesvs Apparel Retail median · lower = cheaper
P/E (12 months)10.2× · Cheaper than median
P/B2.07× · Pricier than median
P/S (12 months)0.61× · Cheaper than median
Price / free cash flow (fiscal year)18.0× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is American Eagle Outfitters Inc (AEO) overvalued or undervalued?
As of Nov 9, 2026, our model estimates a fair value of $22.30 versus a price of $19.92, about +12% upside (undervalued).
What is the fair value of AEO?
Our model-based fair value for American Eagle Outfitters Inc is $22.30 (as of Nov 9, 2026), built from audited fundamentals. The current price: $19.92.
What is the quality score of AEO?
American Eagle Outfitters Inc has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for American Eagle Outfitters Inc (AEO)?
Our model-based price target is the fair value of $22.30 (as of Nov 9, 2026) from 25 valuation models. Cautious scenario $15.61, optimistic scenario $28.99. It is a calculation from audited fundamentals, not an analyst target.
What is the American Eagle Outfitters Inc stock forecast for 2026?
Our models put fair value at $22.30, about +12% upside versus a price of $19.92 (undervalued). Cautious scenario $15.61, optimistic scenario $28.99. The calculation is refreshed regularly with new filings.
What is the revenue of American Eagle Outfitters Inc (AEO)?
American Eagle Outfitters Inc reported trailing-twelve-month revenue of about $5.7B (latest available figure, as of Nov 9, 2026).
Does American Eagle Outfitters Inc pay a dividend?
American Eagle Outfitters Inc currently shows a dividend yield of 2.51% relative to its recent price (as of Nov 9, 2026).
How much is the dividend of American Eagle Outfitters Inc (AEO) and when is the ex-dividend date?
American Eagle Outfitters Inc pays a dividend of $0.5 per share a year, a dividend yield of 2.5%. The last ex-dividend date was Oct 9, 2026. A dividend has been paid every year since at least 2004. The payout ratio is 25.6% of earnings. Free cash flow covers the dividend 2.33 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into American Eagle Outfitters Inc (AEO)?
For today's price to be fair in a discounted-cash-flow model, American Eagle Outfitters Inc would have to grow free cash flow by +7.8 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.9 % per year. As of Nov 9, 2026.
What discount rate (WACC) does the fair value of AEO use?
Our models discount American Eagle Outfitters Inc at 10.4 %: a base by market capitalisation (mid), damped by beta 1.26, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For American Eagle Outfitters Inc that is +7.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has American Eagle Outfitters Inc (AEO) delivered so far?
Over the past 5 years revenue at American Eagle Outfitters Inc grew +7.9 % a year. The price currently implies free-cash-flow growth of +7.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of American Eagle Outfitters Inc (AEO) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into American Eagle Outfitters Inc (+7.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of American Eagle Outfitters Inc (AEO)?
The free-cash-flow yield on the price is 5.57 %: that much free cash flow American Eagle Outfitters Inc produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of American Eagle Outfitters Inc (AEO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For American Eagle Outfitters Inc it is $22.30 per share (as of Nov 9, 2026), against a price of $19.92. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is American Eagle Outfitters Inc stock overvalued or undervalued in 2026?
As of Nov 9, 2026, AEO trades below its calculated fair value: price $19.92, fair value $22.30, a gap of about +12% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of AEO?
No. The price is what the market pays today ($19.92); the fair value is what the company's own numbers justify ($22.30). For American Eagle Outfitters Inc the two are $2.38 per share apart. That gap is exactly why we show both numbers side by side.
How much is American Eagle Outfitters Inc worth?
The market values American Eagle Outfitters Inc at about $3.5B (market capitalisation, as of Nov 9, 2026). Per share that is $19.92; our models calculate a fair value of $22.30 per share.
What do the bullish and bearish scenarios say about AEO?
Our models span a range for American Eagle Outfitters Inc: cautious scenario $15.61, base $22.30, optimistic $28.99 per share (as of Nov 9, 2026, price $19.92). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AEO?
American Eagle Outfitters Inc trades at a price-to-earnings ratio of 10.2 (as of Nov 9, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $22.30 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2017 to 2026), reported earnings: 14.4. Other multiples: PEG 3.3, P/B 2.1, P/S 0.6, EV/EBITDA 5.7.
What is the PEG ratio of AEO?
The PEG ratio of American Eagle Outfitters Inc is 3.34 (P/E divided by earnings growth, as of Nov 9, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of American Eagle Outfitters Inc (AEO)?
Balance-sheet figures for American Eagle Outfitters Inc (as of Nov 9, 2026): return on equity 20.0%. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is AEO from its 52-week high?
American Eagle Outfitters Inc trades at $19.92, about 27% below its 52-week high of $27.47 and 38% above the low of $14.43 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $22.30 is for.
Which stocks are comparable to American Eagle Outfitters Inc?
From the same area (Consumer Cyclical) we also value Industria de Diseño Textil, S.A, The TJX Companies, Inc, Fast Retailing Co, Ross Stores, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is American Eagle Outfitters Inc stock attractive at the current price?
The data as of Nov 9, 2026: price $19.92, calculated fair value $22.30 (+12%), Quality Score 64/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of AEO calculated?
We run American Eagle Outfitters Inc through 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $22.30 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. American Eagle Outfitters Inc currently trades 11% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of American Eagle Outfitters Inc (AEO)?
The closing price on Nov 6, 2026 was $19.92. Our model-based fair value is $22.30, about +12% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with American Eagle Outfitters Inc right now?
A fairly wide model range ($15.61 to $28.99) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of American Eagle Outfitters Inc (AEO) come from?
Earnings per share at American Eagle Outfitters Inc grew +3.5 % a year from 2015 to 2026. Broken into its drivers: revenue per share +5.1 %, EBIT margin −2.0 %, tax rate +1.8 %, residual (interest, one-offs) −1.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of American Eagle Outfitters Inc
How large is the market capitalisation of American Eagle Outfitters Inc (AEO)?
The market capitalisation of American Eagle Outfitters Inc is $3.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of American Eagle Outfitters Inc (AEO)?
The price-to-sales ratio of American Eagle Outfitters Inc is 0.61 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of American Eagle Outfitters Inc (AEO)?
Earnings per share at American Eagle Outfitters Inc are $1.95 (price ÷ EPS = P/E 10.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of American Eagle Outfitters Inc (AEO)?
The dividend yield of American Eagle Outfitters Inc is 2.5% (payout 25.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of American Eagle Outfitters Inc (AEO)?
The net margin of American Eagle Outfitters Inc is 5.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of American Eagle Outfitters Inc (AEO)?
The return on equity (ROE) of American Eagle Outfitters Inc is 20.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of American Eagle Outfitters Inc (AEO)?
On an EBIT basis the return on assets of American Eagle Outfitters Inc is 10.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of American Eagle Outfitters Inc (AEO)?
The operating margin of American Eagle Outfitters Inc is 2.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at American Eagle Outfitters Inc (AEO)?
Revenue at American Eagle Outfitters Inc is growing +7.5% versus a year earlier (3y avg +3.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at American Eagle Outfitters Inc (AEO)?
Earnings per share at American Eagle Outfitters Inc are growing +75.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does American Eagle Outfitters Inc (AEO) carry?
The net debt of American Eagle Outfitters Inc is $1.5B (fiscal year 2026, ≈ 7.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch American Eagle Outfitters Inc in the live analysis
One click puts American Eagle Outfitters Inc on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 9, 2026