Alaska Enterprise Value vs Free Cash Flow Analysis

ALK Stock

USD 45.01 0.57 1.28%

Alaska Air financial indicator trend analysis is way more than just evaluating Alaska Air Group prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Alaska Air Group is a good investment. Please check the relationship between Alaska Air Enterprise Value and its Free Cash Flow accounts. 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 tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Enterprise Value vs Free Cash Flow

Enterprise Value vs Free Cash Flow Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Alaska Air Group Enterprise Value account and Free Cash Flow. At this time, the significance of the direction appears to have very week relationship.

The correlation between Alaska Air's Enterprise Value and Free Cash Flow is 0.21. Overlapping area represents the amount of variation of Enterprise Value that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of Alaska Air Group, assuming nothing else is changed. The correlation between historical values of Alaska Air's Enterprise Value and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Enterprise Value of Alaska Air Group are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Enterprise Value i.e., Alaska Air's Enterprise Value and Free Cash Flow go up and down completely randomly.

Correlation Coefficient

0.21

Relationship Direction	Positive
Relationship Strength	Very Weak

View All Relationships

Enterprise Value

Enterprise Value (or EV) is usually referred to as Alaska Air theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Alaska Air Group debt, but would also pocket its cash. Enterprise Value is more accurate representation of Alaska Air value than its market capitalization because it takes into account all of Alaska Air Group existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Most indicators from Alaska Air's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Alaska Air Group current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. 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 tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.

At this time, Alaska Air's Tax Provision is quite stable compared to the past year. Sales General And Administrative To Revenue is expected to rise to 0.30 this year, although Enterprise Value Multiple will most likely fall to 3.94.

	2021	2022	2023	2024 (projected)
Total Operating Expenses	680M	1.0B	1.0B	1.5B
Cost Of Revenue	4.8B	8.0B	8.5B	8.9B

Total Operating Expenses Cost Of Revenue

Alaska Air fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Current Deferred Revenue	Common Stock Total Equity
Total Assets		0.93	0.86	0.99	0.94	0.99	0.96	0.92	0.2	0.99	0.36	0.63	0.88	0.23	0.99	0.82	0.09	-0.64	0.99	0.8	0.67	0.71	0.72	0.69	0.87	-0.55
Short Long Term Debt Total	0.93		0.8	0.94	0.78	0.87	0.96	0.79	0.43	0.89	0.36	0.75	0.86	0.09	0.95	0.63	0.01	-0.61	0.95	0.78	0.77	0.86	0.64	0.68	0.77	-0.52
Other Current Liab	0.86	0.8		0.84	0.86	0.88	0.79	0.86	0.22	0.86	0.11	0.57	0.74	0.35	0.83	0.67	0.0	-0.61	0.84	0.52	0.6	0.72	0.38	0.46	0.55	-0.48
Total Current Liabilities	0.99	0.94	0.84		0.89	0.97	0.96	0.86	0.27	0.97	0.29	0.68	0.86	0.23	0.98	0.82	0.01	-0.58	0.99	0.86	0.72	0.75	0.76	0.71	0.89	-0.53
Total Stockholder Equity	0.94	0.78	0.86	0.89		0.96	0.87	0.99	-0.06	0.95	0.39	0.5	0.83	0.25	0.88	0.77	0.18	-0.72	0.89	0.62	0.55	0.53	0.6	0.63	0.78	-0.59
Property Plant And Equipment Net	0.99	0.87	0.88	0.97	0.96		0.93	0.93	0.11	0.99	0.3	0.55	0.82	0.28	0.96	0.87	0.07	-0.61	0.97	0.77	0.6	0.64	0.71	0.66	0.85	-0.54
Net Debt	0.96	0.96	0.79	0.96	0.87	0.93		0.86	0.18	0.95	0.35	0.62	0.85	0.04	0.97	0.75	-0.01	-0.65	0.97	0.84	0.66	0.73	0.75	0.7	0.86	-0.54
Retained Earnings	0.92	0.79	0.86	0.86	0.99	0.93	0.86		-0.03	0.93	0.44	0.5	0.84	0.16	0.86	0.68	0.22	-0.82	0.87	0.57	0.55	0.57	0.53	0.61	0.72	-0.68
Cash	0.2	0.43	0.22	0.27	-0.06	0.11	0.18	-0.03		0.12	0.09	0.53	0.28	0.16	0.29	-0.06	0.01	0.06	0.28	0.21	0.49	0.66	-0.02	0.12	0.04	-0.06
Non Current Assets Total	0.99	0.89	0.86	0.97	0.95	0.99	0.95	0.93	0.12		0.38	0.53	0.83	0.19	0.97	0.83	0.09	-0.66	0.97	0.78	0.58	0.65	0.72	0.69	0.86	-0.57
Non Currrent Assets Other	0.36	0.36	0.11	0.29	0.39	0.3	0.35	0.44	0.09	0.38		0.2	0.43	-0.16	0.38	0.05	0.8	-0.52	0.34	0.09	0.21	0.28	0.09	0.28	0.31	-0.35
Cash And Short Term Investments	0.63	0.75	0.57	0.68	0.5	0.55	0.62	0.5	0.53	0.53	0.2		0.76	0.34	0.64	0.28	0.07	-0.37	0.65	0.49	0.99	0.79	0.32	0.51	0.48	-0.29
Net Receivables	0.88	0.86	0.74	0.86	0.83	0.82	0.85	0.84	0.28	0.83	0.43	0.76		0.19	0.87	0.52	0.17	-0.69	0.87	0.64	0.79	0.77	0.54	0.56	0.7	-0.63
Common Stock Shares Outstanding	0.23	0.09	0.35	0.23	0.25	0.28	0.04	0.16	0.16	0.19	-0.16	0.34	0.19		0.2	0.38	0.21	0.28	0.21	0.01	0.4	0.07	-0.02	-0.07	0.13	0.3
Non Current Liabilities Total	0.99	0.95	0.83	0.98	0.88	0.96	0.97	0.86	0.29	0.97	0.38	0.64	0.87	0.2		0.79	0.08	-0.59	1.0	0.83	0.68	0.75	0.73	0.67	0.86	-0.51
Inventory	0.82	0.63	0.67	0.82	0.77	0.87	0.75	0.68	-0.06	0.83	0.05	0.28	0.52	0.38	0.79		-0.06	-0.24	0.81	0.8	0.36	0.34	0.79	0.54	0.86	-0.24
Other Current Assets	0.09	0.01	0.0	0.01	0.18	0.07	-0.01	0.22	0.01	0.09	0.8	0.07	0.17	0.21	0.08	-0.06		-0.24	0.05	-0.27	0.09	0.06	-0.31	-0.15	-0.02	-0.09
Other Stockholder Equity	-0.64	-0.61	-0.61	-0.58	-0.72	-0.61	-0.65	-0.82	0.06	-0.66	-0.52	-0.37	-0.69	0.28	-0.59	-0.24	-0.24		-0.59	-0.31	-0.37	-0.49	-0.26	-0.44	-0.43	0.85
Total Liab	0.99	0.95	0.84	0.99	0.89	0.97	0.97	0.87	0.28	0.97	0.34	0.65	0.87	0.21	1.0	0.81	0.05	-0.59		0.84	0.7	0.76	0.74	0.69	0.88	-0.52
Property Plant And Equipment Gross	0.8	0.78	0.52	0.86	0.62	0.77	0.84	0.57	0.21	0.78	0.09	0.49	0.64	0.01	0.83	0.8	-0.27	-0.31	0.84		0.53	0.55	0.94	0.71	0.93	-0.38
Total Current Assets	0.67	0.77	0.6	0.72	0.55	0.6	0.66	0.55	0.49	0.58	0.21	0.99	0.79	0.4	0.68	0.36	0.09	-0.37	0.7	0.53		0.78	0.38	0.56	0.54	-0.3
Short Term Debt	0.71	0.86	0.72	0.75	0.53	0.64	0.73	0.57	0.66	0.65	0.28	0.79	0.77	0.07	0.75	0.34	0.06	-0.49	0.76	0.55	0.78		0.29	0.41	0.44	-0.4
Intangible Assets	0.72	0.64	0.38	0.76	0.6	0.71	0.75	0.53	-0.02	0.72	0.09	0.32	0.54	-0.02	0.73	0.79	-0.31	-0.26	0.74	0.94	0.38	0.29		0.76	0.94	-0.35
Accounts Payable	0.69	0.68	0.46	0.71	0.63	0.66	0.7	0.61	0.12	0.69	0.28	0.51	0.56	-0.07	0.67	0.54	-0.15	-0.44	0.69	0.71	0.56	0.41	0.76		0.76	-0.46
Current Deferred Revenue	0.87	0.77	0.55	0.89	0.78	0.85	0.86	0.72	0.04	0.86	0.31	0.48	0.7	0.13	0.86	0.86	-0.02	-0.43	0.88	0.93	0.54	0.44	0.94	0.76		-0.46
Common Stock Total Equity	-0.55	-0.52	-0.48	-0.53	-0.59	-0.54	-0.54	-0.68	-0.06	-0.57	-0.35	-0.29	-0.63	0.3	-0.51	-0.24	-0.09	0.85	-0.52	-0.38	-0.3	-0.4	-0.35	-0.46	-0.46

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Alaska Air Account Relationship Matchups

Alaska Air fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	13.0B	14.0B	14.0B	14.3B	15.8B	16.6B
Short Long Term Debt Total	3.2B	5.1B	4.1B	3.9B	3.8B	4.0B
Other Current Liab	1.7B	1.7B	1.1B	1.5B	1.4B	1.5B
Total Current Liabilities	3.2B	4.3B	4.0B	4.5B	4.5B	4.7B
Total Stockholder Equity	4.3B	3.0B	3.8B	3.8B	4.1B	4.3B
Property Plant And Equipment Net	8.6B	7.6B	7.6B	8.8B	9.6B	10.1B
Net Debt	3.0B	3.7B	3.6B	3.5B	4.1B	4.3B
Retained Earnings	5.1B	3.8B	4.2B	4.3B	4.5B	4.8B
Cash	221M	1.4B	470M	338M	281M	280.5M
Non Current Assets Total	11.0B	10.0B	10.0B	11.2B	13.1B	13.8B
Non Currrent Assets Other	278M	379M	396M	(243M)	262M	275.1M
Cash And Short Term Investments	1.5B	3.3B	3.1B	2.4B	1.8B	967.2M
Net Receivables	323M	480M	546M	296M	383M	402.2M
Common Stock Shares Outstanding	124.3M	123.5M	126.8M	127.9M	128.7M	118.0M
Liabilities And Stockholders Equity	13.0B	14.0B	14.0B	14.3B	15.8B	16.6B
Non Current Liabilities Total	5.5B	6.8B	6.2B	6.0B	7.3B	7.6B
Other Current Assets	516M	660M	196M	60M	415M	302.9M
Other Stockholder Equity	(338M)	(266M)	(180M)	(97M)	(124M)	(117.8M)
Total Liab	8.7B	11.0B	10.2B	10.5B	11.7B	12.3B
Property Plant And Equipment Gross	1.3B	7.6B	10B	11.4B	13.1B	13.7B
Total Current Assets	2.0B	4.0B	3.9B	3.0B	2.7B	1.4B
Accumulated Other Comprehensive Income	(465M)	(494M)	(262M)	(388M)	(299M)	(314.0M)
Short Term Debt	504M	1.4B	634M	523M	511M	536.6M
Intangible Assets	122M	107M	2.0B	2.0B	2.3B	2.5B
Accounts Payable	146M	108M	200M	221M	207M	113.9M
Current Deferred Revenue	900M	1.1B	2.1B	2.3B	2.4B	2.5B
Short Term Investments	1.3B	2.0B	2.6B	2.1B	1.5B	1.0B
Other Liab	2.8B	3.1B	2.7B	2.6B	3.0B	3.1B
Other Assets	809M	379M	780M	380M	437M	325.4M
Long Term Debt	1.3B	2.4B	2.2B	1.9B	2.2B	1.4B
Treasury Stock	(518M)	(568M)	(643M)	(674M)	(606.6M)	(576.3M)
Property Plant Equipment	8.1B	6.2B	7.2B	8.8B	10.1B	10.7B
Net Tangible Assets	2.3B	3.0B	1.8B	3.8B	4.4B	3.1B
Long Term Debt Total	1.3B	2.4B	2.2B	1.9B	2.2B	1.6B
Capital Surpluse	305M	391M	494M	577M	519.3M	338.2M

Pair Trading with Alaska Air

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alaska Air position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alaska Air will appreciate offsetting losses from the drop in the long position's value.

Moving together with Alaska Stock

0.69	ATCOL	Atlas Corp	Pair Corr
0.69	RYAAY	Ryanair Holdings PLC Report 27th of May 2024	Pair Corr

Moving against Alaska Stock

0.86	SRFM	Surf Air Mobility	Pair Corr
0.8	AZ	A2Z Smart Technologies	Pair Corr
0.79	BA	Boeing Earnings Call This Week	Pair Corr
0.71	AP	Ampco Pittsburgh	Pair Corr
0.5	FA	First Advantage Corp Financial Report 8th of May 2024	Pair Corr

The ability to find closely correlated positions to Alaska Air could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alaska Air when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alaska Air - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alaska Air Group to buy it.

The correlation of Alaska Air is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alaska Air moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alaska Air Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Alaska Air can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

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:

How To Invest In Alaska

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Is Alaska Stock a good investment?

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What is Alaska Air's Net Worth?

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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 tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.

You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

Complementary Tools for Alaska Stock analysis

When running Alaska Air's price analysis, check to measure Alaska Air's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alaska Air is operating at the current time. Most of Alaska Air's value examination focuses on studying past and present price action to predict the probability of Alaska Air's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alaska Air's price. Additionally, you may evaluate how the addition of Alaska Air to your portfolios can decrease your overall portfolio volatility.

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Is Alaska Air's industry 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

2.484

Earnings Share

1.83

Revenue Per Share

81.853

Quarterly Revenue Growth

0.03

Return On Assets

0.0355

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.

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Alaska Enterprise Value vs Free Cash Flow Analysis

Enterprise Value vs Free Cash Flow

Enterprise Value vs Free Cash Flow Correlation Analysis

Correlation Coefficient

Enterprise Value

Free Cash Flow

Alaska Air fundamental ratios Correlations

Alaska Air Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Alaska Air fundamental ratios Accounts

Pair Trading with Alaska Air

Moving together with Alaska Stock

Moving against Alaska Stock

Complementary Tools for Alaska Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Total Liab	+ 1.0	Non Current Liabilities Total
Total Current Liabilities	+ 0.99	Total Assets
Property Plant And Equipment Net	+ 0.99	Total Assets
Non Current Assets Total	+ 0.99	Total Assets
Non Current Liabilities Total	+ 0.99	Total Assets
Total Liab	+ 0.99	Total Assets

Other Stockholder Equity	- 0.82	Retained Earnings
Other Stockholder Equity	- 0.72	Total Stockholder Equity
Other Stockholder Equity	- 0.69	Net Receivables
Common Stock Total Equity	- 0.68	Retained Earnings
Other Stockholder Equity	- 0.66	Non Current Assets Total
Other Stockholder Equity	- 0.65	Net Debt