Despegar Story

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DESP -- USA Stock  

USD 6.35  0.08  1.24%

It appears that Despegar may not recover as fast as we have hopped for as its price went down 2.7% today. The company's current daily volatility is 3.97 percent, with a beta of 1.69 and an alpha of 0.33 over DOW. As many millenniums are trying to avoid the recent volatility, we are going to recap Despegar Com Corp a little further to understand its historical price patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Is Despegar (NYSE:DESP) stock way too aggressive for baby boomers?
Despegar Com Corp currently holds roughly 221.66 M in cash with (17.99 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.18. We provide trade advice to complement the prevailing expert consensus on Despegar Com Corp. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Investing in Despegar, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Despegar along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Despegar's Liquidity

Despegar financial leverage refers to using borrowed capital as a funding source to finance Despegar Com Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Despegar financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Despegar's total debt and its cash.

How Despegar utilizes its cash?

To perform a cash flow analysis of Despegar, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Despegar is receiving and how much cash it distributes out in a given period. The Despegar cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Despegar Net Cash Flow from Operations is very stable at the moment as compared to the past year. Despegar reported last year Net Cash Flow from Operations of 44.24 Million

Despegar Correlation with Peers

Investors in Despegar can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Despegar Com Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Despegar and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Despegar is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Despegar for more details

What is driving Despegar Investor Appetite?

Despegar appears to be somewhat reliable, given 1 month investment horizon. Despegar Com Corp secures Sharpe Ratio (or Efficiency) of 0.11, which denotes the company had 0.11% of return per unit of risk over the last month. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Despegar Com Corp, which you can use to evaluate future volatility of the firm. Please utilize Despegar Com Corp Coefficient Of Variation of 533.93, mean deviation of 2.91, and Downside Deviation of 3.86 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Despegar price decline impact its balance sheet?

Recent potential upside is at 7.93. Despegar Com Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Despegar Com Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Despegar future alpha.

Our Takeaway on Despegar Investment

Although some other firms in the travel services industry are either recovering or due for a correction, Despegar may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 20th of August 2020, our research shows that Despegar is a rather somewhat reliable investment opportunity with a low probability of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our current 30 days buy vs. sell advice on the firm is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Despegar Com Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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