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Question about airline P/E ratios
Posted on 4/29/16 at 5:50 pm
Posted on 4/29/16 at 5:50 pm
I'm researching airline stocks and notice that Delta has roughly twice the PE ratio that American Airlines has. What is the basic reason for this?
3
Posted on 4/29/16 at 11:53 pm to I Love Bama
I would guess that it's because of Delta's retention of HVC's but that's just a guess.
Posted on 4/30/16 at 9:22 am to I Love Bama
American has much more debt compared to Delta.
Posted on 4/30/16 at 9:29 am to I Love Bama
projected earnings per share growth
(click drop down box and choose 'Growth')
AAL earnings down 12%, DAL up 34%
Projecting further 30% drop in earnings for AAL and increase of 47% for DAL
I am guessing difference in PE is that AAL profits are falling and DAL's are increasing. Investors willing to pay more for DALs past earnings because they are expected to increase while AAL are expected to fall.
P/E on next years projected earnings are 5.6 & 6.1
(click drop down box and choose 'Growth')
AAL earnings down 12%, DAL up 34%
Projecting further 30% drop in earnings for AAL and increase of 47% for DAL
I am guessing difference in PE is that AAL profits are falling and DAL's are increasing. Investors willing to pay more for DALs past earnings because they are expected to increase while AAL are expected to fall.
P/E on next years projected earnings are 5.6 & 6.1
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