American Airlines Group Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$4.66
Market Price
$12.84
Overvalued By
175.6%
Method: 10-year explicit-path FCF DCF: revenue grows 2.5% per year from $58.3B; FCF margin recovers from 1.5% (yr1) to a normalized 5% by yr5 and holds flat through yr10; 11% discount rate; 2.5% terminal growth; $27.37B net debt; 661.97M shares outstanding.
Reasoning: American Airlines' free cash flow is thin and volatile (TTM FCF margin under 1%), so I modeled gradual margin recovery toward a historically achievable FCF margin rather than using the trailing figure directly; the high discount rate and large net-debt deduction reflect substantial leverage and elevated bankruptcy-risk (Altman Z-Score near 0.7).