Alaska Air Valuation

ALK Stock  USD 39.87  0.19  0.48%   
At this time, the firm appears to be undervalued. Alaska Air Group shows a prevailing Real Value of $44.94 per share. The current price of the firm is $39.87. Our model approximates the value of Alaska Air Group from analyzing the firm fundamentals such as return on equity of 0.0593, and Profit Margin of 0.02 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
1.2223
Enterprise Value
7.1 B
Enterprise Value Ebitda
16.9166
Price Sales
0.4822
Forward PE
7.8186
Undervalued
Today
39.87
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.
Our valuation method for Alaska Air Group is useful when determining the fair value of the Alaska stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Alaska Air. Since Alaska Air is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Alaska Stock. However, Alaska Air's intrinsic value may or may not be the same as its current market price, 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  39.87 Real  44.94 Target  51.58 Hype  39.84 Naive  41.25
The real value of Alaska Stock, also known as its intrinsic value, is the underlying worth of Alaska Air Group Company, which is reflected in its stock price. It is based on Alaska Air's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Alaska Air's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Alaska Air's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
44.94
Real Value
47.08
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
-1.9-0.91-0.49
Details
Hype
Prediction
LowEstimatedHigh
37.7039.8441.98
Details
Naive
Forecast
LowNext ValueHigh
39.1141.2543.40
Details
13 Analysts
Consensus
LowTarget PriceHigh
46.9451.5857.25
Details

Alaska Air Investments

(1.08 Billion)

Alaska Air Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Alaska Air's current stock value. Our valuation model uses many indicators to compare Alaska Air value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Alaska Air competition to find correlations between indicators driving Alaska Air's intrinsic value. More Info.
Alaska Air Group is rated below average in price to sales category among related companies. It is rated second in price to earning category among related companies reporting about  234.24  of Price To Earning per Price To Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Alaska Air by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alaska Air's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alaska Air's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Alaska Air's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Alaska Air and how it compares across the competition.

About Alaska Air Valuation

The stock valuation mechanism determines the current worth of Alaska Air Group on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Alaska Air's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Alaska Air's related companies.
Last ReportedProjected for 2024
Gross Profit1.9 B1.4 B
Pretax Profit Margin 0.03  0.03 
Operating Profit Margin 0.09  0.09 
Net Profit Margin 0.02  0.02 
Gross Profit Margin 0.19  0.18 

Alaska Air Quarterly Retained Earnings

4.54 Billion

8 Steps to conduct Alaska Air's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Alaska Air's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Alaska Air's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Alaska Air's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Alaska Air's revenue streams: Identify Alaska Air's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Alaska Air's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Alaska Air's growth potential: Evaluate Alaska Air's management, business model, and growth potential.
  • Determine Alaska Air's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Alaska Air's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Alaska Air Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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 Outstanding128.7 M
Quarterly Earnings Growth Y O Y2.484
Forward Price Earnings7.8186

Alaska Air Current Valuation Indicators

Valuation refers to the process of determining the present value of Alaska Air Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Alaska we look at many different elements of the entity such as Alaska's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Alaska Air's valuation analysis is also 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 tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
You can also try the CEOs Directory module to screen CEOs from public companies around the world.

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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.