Alaska Air Valuation
| ALK Stock | USD 52.68 0.25 0.47% |
At this time, the firm appears to be fairly valued. Alaska Air Group shows a prevailing Real Value of $54.64 per share. The current price of the firm is $52.68. Our model approximates the value of Alaska Air Group from analyzing the firm fundamentals such as profit margin of 0.03 %, and Return On Equity of 0.0751 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Alaska Air's valuation include:
Price Book 1.5002 | Enterprise Value 10.4 B | Enterprise Value Ebitda 9.3721 | Price Sales 0.6219 | Forward PE 8.4674 |
Fairly Valued
Today
Please note that Alaska Air's price fluctuation is very steady at this time. Calculation of the real value of Alaska Air Group is based on 3 months time horizon. Increasing Alaska Air's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Alaska Air's intrinsic value may or may not be the same as its current market price of 52.68, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 52.68 | Real 54.64 | Target 51.58 | Hype 52.86 | Naive 51.6 |
The intrinsic value of Alaska Air's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Alaska Air's stock price.
Estimating the potential upside or downside of Alaska Air Group helps investors to forecast how Alaska stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Alaska Air more accurately as focusing exclusively on Alaska Air's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Alaska Air's intrinsic value based on its ongoing forecasts of Alaska Air's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Alaska Air's closest peers.
Alaska Air Cash |
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Alaska Valuation Trend
Knowing Alaska Air's actual value is paramount for traders when making sound investment determinations. Using both Alaska Air's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Alaska Revenue by Product
Alaska Air Total Value Analysis
Alaska Air Group is presently expected to have company total value of 10.36 B with market capitalization of 6.69 B, debt of 3.82 B, and cash on hands of 338 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Alaska Air fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
10.36 B | 6.69 B | 3.82 B | 338 M |
Alaska Air Investor Information
About 88.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.5. Some equities with similar Price to Book (P/B) outperform the market in the long run. Alaska Air Group has Price/Earnings To Growth (PEG) ratio of 1.3. The entity last dividend was issued on the 14th of February 2020. The firm had 2:1 split on the 10th of July 2014. Based on the analysis of Alaska Air's profitability, liquidity, and operating efficiency, Alaska Air Group may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.Alaska Air Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Alaska Air has an asset utilization ratio of 65.85 percent. This suggests that the Company is making $0.66 for each dollar of assets. An increasing asset utilization means that Alaska Air Group is more efficient with each dollar of assets it utilizes for everyday operations.Alaska Air Ownership Allocation
Alaska Air holds a total of 126.94 Million outstanding shares. The majority of Alaska Air Group outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Alaska Air Group to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Alaska Air. Please pay attention to any change in the institutional holdings of Alaska Air Group as this could imply that something significant has changed or is about to change at the company. Please note that on March 13, 2020, Representative Susan A Davis of US Congress acquired $15k to $50k worth of Alaska Air Group's common stock.Alaska Air Profitability Analysis
The company reported the last year's revenue of 10.43 B. Total Income to common stockholders was 235 M with profit before taxes, overhead, and interest of 2.36 B.About Alaska Air Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Alaska Air Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Alaska Air Group based exclusively on its fundamental and basic technical indicators. By analyzing Alaska Air's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Alaska Air's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Alaska Air. We calculate exposure to Alaska Air's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Alaska Air's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.5 B | 1.4 B | |
| Pretax Profit Margin | 0.03 | 0.03 | |
| Operating Profit Margin | 0.04 | 0.04 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.24 | 0.43 |
Alaska Air Quarterly Retained Earnings |
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Alaska Air Growth Indicators
Investing in growth stocks can be very risky. If the company such as Alaska Air does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 128.7 M | |
| Quarterly Earnings Growth Y O Y | 0.704 | |
| Forward Price Earnings | 8.4674 |
Alaska Air Current Valuation Indicators
Alaska Air's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Alaska Air's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Alaska Air, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Alaska Air's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Alaska Air's worth.When determining whether Alaska Air Group is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Alaska Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Alaska Air Group Stock. Highlighted below are key reports to facilitate an investment decision about Alaska Air Group Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alaska Air Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alaska Air. If investors know Alaska will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alaska Air listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.704 | Earnings Share 2.5 | Revenue Per Share 85.034 | Quarterly Revenue Growth 0.082 | Return On Assets 0.0286 |
The market value of Alaska Air Group is measured differently than its book value, which is the value of Alaska that is recorded on the company's balance sheet. Investors also form their own opinion of Alaska Air's value that differs from its market value or its book value, called intrinsic value, which is Alaska Air's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alaska Air's market value can be influenced by many factors that don't directly affect Alaska Air's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alaska Air's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alaska Air is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alaska Air's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.