Is American Eagle Outfitters, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for American Eagle Outfitters, Inc. moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 11, an EV to EBITDA of 5.65, and a Price to Book Value of 1.75. In comparison, peers such as Gap, Inc. have a P/E of 10.22, while Urban Outfitters, Inc. boasts a P/E of 13.77, suggesting that American Eagle's valuation is competitive within its industry.
The stock has underperformed relative to the S&P 500, with a 1-year return of -30.47% compared to the index's 14.08%, reinforcing the notion that the stock may not be as attractive as it once was. Overall, American Eagle Outfitters, Inc. is currently fairly valued amidst a challenging market backdrop.