Despegar Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:4em;'>DE</div>
DESP -- USA Stock  

USD 6.35  0.08  1.24%

Despegar is currently generating 0.3811% in daily expected returns and assumes 3.9325% risk (volatility on return distribution) over the 90 days horizon. As many old-fashioned traders are trying to avoid consumer cyclical space, it makes sense to recap Despegar Com Corp a little further and try to understand its current volatility patterns. We will focus on if the expected returns on Despegar will justify its current volatility.
Published over a month ago
View all stories for Despegar | View All Stories
Will Despegar (NYSE:DESP) recent volatility spike continue?
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.
Volatility is a rate at which the price of Despegar or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Despegar may increase or decrease. In other words, similar to Despegar's beta indicator, it measures the risk of Despegar and helps estimate the fluctuations that may happen in a short period of time. So if prices of Despegar fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

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 Volatility Drivers

Despegar unsystematic risk is unique to Despegar Com Corp and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Despegar you can also buy Lindblad Expeditions Holdings. You can also mitigate this risk by investing in the travel services sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Despegar important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Despegar income statement and balance sheet. Here are more details about Despegar volatility.
0.990.970.830.89-0.890.98-0.660.940.980.720.630.970.30.720.720.440.680.92-0.85-0.40.9-0.960.980.961.00.720.740.830.710.73-0.82-0.64-0.83-0.620.640.660.740.960.630.97-0.830.810.830.79-0.841.00.96
0.990.990.770.87-0.861.0-0.570.890.950.750.580.980.290.750.750.40.710.88-0.78-0.490.85-0.941.00.990.990.740.760.810.710.75-0.8-0.55-0.8-0.540.70.690.760.940.670.95-0.80.780.780.72-0.81.00.99
0.970.990.660.78-0.760.99-0.480.830.910.750.50.980.230.750.750.360.740.8-0.69-0.520.78-0.870.990.990.960.740.760.840.720.75-0.7-0.46-0.7-0.410.80.70.820.870.690.89-0.70.810.660.62-0.70.970.99
0.830.770.660.86-0.930.73-0.940.950.910.430.80.730.420.430.430.60.320.96-0.98-0.030.98-0.920.710.670.840.450.460.670.560.47-0.86-0.92-0.91-0.950.130.340.480.920.280.88-0.90.670.980.99-0.910.810.66
0.890.870.780.86-0.980.87-0.630.840.870.630.690.790.40.630.630.330.570.94-0.86-0.440.87-0.960.840.830.860.640.650.50.520.66-0.98-0.6-0.97-0.750.30.580.40.960.530.97-0.980.480.940.82-0.970.880.83
-0.89-0.86-0.76-0.93-0.98-0.840.74-0.9-0.91-0.62-0.71-0.8-0.37-0.62-0.62-0.38-0.54-0.980.930.31-0.920.97-0.82-0.8-0.88-0.64-0.64-0.56-0.59-0.650.960.720.970.83-0.26-0.56-0.44-0.97-0.5-0.960.97-0.55-0.98-0.890.97-0.88-0.8
0.981.00.990.730.87-0.84-0.520.860.930.770.550.970.270.770.770.350.740.86-0.75-0.530.82-0.931.00.990.980.760.770.780.690.77-0.79-0.5-0.79-0.50.720.710.730.930.690.95-0.790.750.750.68-0.790.990.99
-0.66-0.57-0.48-0.94-0.630.74-0.52-0.88-0.79-0.21-0.75-0.55-0.37-0.21-0.21-0.68-0.09-0.80.91-0.27-0.910.74-0.51-0.45-0.68-0.24-0.25-0.68-0.45-0.260.641.00.720.940.01-0.11-0.43-0.75-0.05-0.680.7-0.7-0.85-0.960.72-0.64-0.44
0.940.890.830.950.84-0.90.86-0.880.990.560.720.870.330.560.560.580.480.94-0.95-0.110.99-0.940.850.820.950.580.590.850.680.6-0.8-0.87-0.84-0.820.410.480.680.950.430.92-0.830.850.910.94-0.850.920.81
0.980.950.910.910.87-0.910.93-0.790.990.650.690.930.320.650.650.530.580.95-0.92-0.250.96-0.970.930.90.990.660.670.850.70.67-0.82-0.78-0.85-0.740.520.570.720.970.530.95-0.850.840.890.88-0.860.970.89
0.720.750.750.430.63-0.620.77-0.210.560.65-0.040.82-0.371.01.0-0.290.990.58-0.57-0.280.48-0.610.780.760.711.01.00.530.821.0-0.47-0.19-0.46-0.160.730.990.50.610.990.64-0.460.50.480.34-0.450.730.77
0.630.580.50.80.69-0.710.55-0.750.720.69-0.040.460.88-0.04-0.040.88-0.110.77-0.66-0.290.81-0.760.520.520.63-0.03-0.020.460.13-0.01-0.8-0.73-0.82-0.84-0.05-0.130.390.76-0.180.73-0.820.470.780.83-0.830.620.51
0.970.980.980.730.79-0.80.97-0.550.870.930.820.460.130.820.820.310.790.85-0.77-0.390.82-0.880.970.970.970.820.830.840.840.82-0.7-0.53-0.71-0.480.760.760.830.890.750.89-0.710.820.720.67-0.710.970.96
0.30.290.230.420.4-0.370.27-0.370.330.32-0.370.880.13-0.37-0.370.83-0.40.43-0.23-0.460.44-0.440.240.270.3-0.37-0.360.13-0.24-0.36-0.56-0.35-0.56-0.52-0.19-0.430.180.44-0.460.43-0.560.130.430.47-0.560.30.26
0.720.750.750.430.63-0.620.77-0.210.560.651.0-0.040.82-0.371.0-0.290.990.58-0.57-0.280.48-0.610.780.760.711.01.00.530.821.0-0.47-0.19-0.46-0.160.730.990.50.610.990.64-0.460.50.480.34-0.450.730.77
0.720.750.750.430.63-0.620.77-0.210.560.651.0-0.040.82-0.371.0-0.290.990.58-0.57-0.280.48-0.610.780.760.711.01.00.530.821.0-0.47-0.19-0.46-0.160.730.990.50.610.990.64-0.460.50.480.34-0.450.730.77
0.440.40.360.60.33-0.380.35-0.680.580.53-0.290.880.310.83-0.29-0.29-0.340.51-0.44-0.090.63-0.50.340.330.47-0.28-0.260.550.03-0.27-0.45-0.68-0.49-0.64-0.02-0.380.480.51-0.40.46-0.480.560.490.65-0.50.430.31
0.680.710.740.320.57-0.540.74-0.090.480.580.99-0.110.79-0.40.990.99-0.340.49-0.46-0.360.39-0.540.760.750.660.980.980.480.780.98-0.4-0.07-0.38-0.030.781.00.50.541.00.58-0.380.450.380.23-0.380.690.76
0.920.880.80.960.94-0.980.86-0.80.940.950.580.770.850.430.580.580.510.49-0.94-0.280.97-0.970.840.830.920.60.60.670.660.61-0.93-0.78-0.95-0.840.310.50.590.980.450.96-0.940.660.970.93-0.950.910.82
-0.85-0.78-0.69-0.98-0.860.93-0.750.91-0.95-0.92-0.57-0.66-0.77-0.23-0.57-0.57-0.44-0.46-0.94-0.04-0.960.9-0.74-0.69-0.85-0.59-0.6-0.69-0.65-0.610.810.90.860.89-0.21-0.49-0.48-0.91-0.43-0.870.85-0.7-0.96-0.960.87-0.83-0.68
-0.4-0.49-0.52-0.03-0.440.31-0.53-0.27-0.11-0.25-0.28-0.29-0.39-0.46-0.28-0.28-0.09-0.36-0.28-0.04-0.130.38-0.52-0.59-0.37-0.25-0.26-0.05-0.07-0.250.47-0.310.39-0.1-0.47-0.3-0.31-0.37-0.32-0.450.40.0-0.160.020.38-0.43-0.6
0.90.850.780.980.87-0.920.82-0.910.990.960.480.810.820.440.480.480.630.390.97-0.96-0.13-0.950.80.770.910.50.510.770.610.52-0.85-0.89-0.9-0.890.290.390.610.960.340.92-0.890.770.950.97-0.90.890.76
-0.96-0.94-0.87-0.92-0.960.97-0.930.74-0.94-0.97-0.61-0.76-0.88-0.44-0.61-0.61-0.5-0.54-0.970.90.38-0.95-0.91-0.89-0.95-0.61-0.63-0.7-0.59-0.630.940.720.950.78-0.41-0.54-0.58-1.0-0.49-1.00.95-0.68-0.94-0.890.95-0.96-0.89
0.981.00.990.710.84-0.821.0-0.510.850.930.780.520.970.240.780.780.340.760.84-0.74-0.520.8-0.910.990.970.770.790.80.70.78-0.76-0.48-0.76-0.470.750.730.750.910.710.93-0.760.770.730.66-0.760.991.0
0.960.990.990.670.83-0.80.99-0.450.820.90.760.520.970.270.760.760.330.750.83-0.69-0.590.77-0.890.990.960.760.770.760.720.76-0.76-0.43-0.75-0.430.760.720.790.890.70.91-0.750.730.70.62-0.750.971.0
1.00.990.960.840.86-0.880.98-0.680.950.990.710.630.970.30.710.710.470.660.92-0.85-0.370.91-0.950.970.960.710.720.860.730.72-0.8-0.67-0.82-0.630.640.640.780.960.610.95-0.810.840.820.8-0.821.00.95
0.720.740.740.450.64-0.640.76-0.240.580.661.0-0.030.82-0.371.01.0-0.280.980.6-0.59-0.250.5-0.610.770.760.711.00.520.851.0-0.48-0.23-0.47-0.190.70.990.510.620.980.64-0.470.490.510.36-0.470.730.76
0.740.760.760.460.65-0.640.77-0.250.590.671.0-0.020.83-0.361.01.0-0.260.980.6-0.6-0.260.51-0.630.790.770.721.00.550.831.0-0.49-0.23-0.48-0.190.720.990.510.630.980.66-0.480.520.510.37-0.470.740.77
0.830.810.840.670.5-0.560.78-0.680.850.850.530.460.840.130.530.530.550.480.67-0.69-0.050.77-0.70.80.760.860.520.550.70.54-0.42-0.68-0.47-0.460.690.450.870.720.440.69-0.461.00.550.65-0.480.820.76
0.710.710.720.560.52-0.590.69-0.450.680.70.820.130.84-0.240.820.820.030.780.66-0.65-0.070.61-0.590.70.720.730.850.830.70.83-0.41-0.44-0.42-0.310.640.790.780.610.770.58-0.410.690.520.48-0.420.70.68
0.730.750.750.470.66-0.650.77-0.260.60.671.0-0.010.82-0.361.01.0-0.270.980.61-0.61-0.250.52-0.630.780.760.721.01.00.540.83-0.5-0.24-0.49-0.210.70.990.50.630.980.66-0.490.510.530.38-0.490.740.77
-0.82-0.8-0.7-0.86-0.980.96-0.790.64-0.8-0.82-0.47-0.8-0.7-0.56-0.47-0.47-0.45-0.4-0.930.810.47-0.850.94-0.76-0.76-0.8-0.48-0.49-0.42-0.41-0.50.610.990.8-0.17-0.41-0.36-0.93-0.36-0.941.0-0.4-0.94-0.830.99-0.82-0.76
-0.64-0.55-0.46-0.92-0.60.72-0.51.0-0.87-0.78-0.19-0.73-0.53-0.35-0.19-0.19-0.68-0.07-0.780.9-0.31-0.890.72-0.48-0.43-0.67-0.23-0.23-0.68-0.44-0.240.610.690.930.02-0.1-0.41-0.73-0.04-0.660.68-0.7-0.83-0.950.7-0.62-0.41
-0.83-0.8-0.7-0.91-0.970.97-0.790.72-0.84-0.85-0.46-0.82-0.71-0.56-0.46-0.46-0.49-0.38-0.950.860.39-0.90.95-0.76-0.75-0.82-0.47-0.48-0.47-0.42-0.490.990.690.85-0.15-0.39-0.37-0.95-0.33-0.941.0-0.46-0.97-0.891.0-0.83-0.75
-0.62-0.54-0.41-0.95-0.750.83-0.50.94-0.82-0.74-0.16-0.84-0.48-0.52-0.16-0.16-0.64-0.03-0.840.89-0.1-0.890.78-0.47-0.43-0.63-0.19-0.19-0.46-0.31-0.210.80.930.850.18-0.07-0.24-0.780.0-0.730.84-0.48-0.92-0.970.86-0.6-0.42
0.640.70.80.130.3-0.260.720.010.410.520.73-0.050.76-0.190.730.73-0.020.780.31-0.21-0.470.29-0.410.750.760.640.70.720.690.640.7-0.170.02-0.150.180.720.770.420.760.46-0.150.660.110.07-0.150.660.77
0.660.690.70.340.58-0.560.71-0.110.480.570.99-0.130.76-0.430.990.99-0.381.00.5-0.49-0.30.39-0.540.730.720.640.990.990.450.790.99-0.41-0.1-0.39-0.070.720.450.541.00.57-0.390.420.410.25-0.390.660.72
0.740.760.820.480.4-0.440.73-0.430.680.720.50.390.830.180.50.50.480.50.59-0.48-0.310.61-0.580.750.790.780.510.510.870.780.5-0.36-0.41-0.37-0.240.770.450.610.460.59-0.360.860.390.44-0.370.740.75
0.960.940.870.920.96-0.970.93-0.750.950.970.610.760.890.440.610.610.510.540.98-0.91-0.370.96-1.00.910.890.960.620.630.720.610.63-0.93-0.73-0.95-0.780.420.540.610.490.99-0.950.70.940.89-0.950.960.89
0.630.670.690.280.53-0.50.69-0.050.430.530.99-0.180.75-0.460.990.99-0.41.00.45-0.43-0.320.34-0.490.710.70.610.980.980.440.770.98-0.36-0.04-0.330.00.761.00.460.490.53-0.340.410.350.18-0.330.640.71
0.970.950.890.880.97-0.960.95-0.680.920.950.640.730.890.430.640.640.460.580.96-0.87-0.450.92-1.00.930.910.950.640.660.690.580.66-0.94-0.66-0.94-0.730.460.570.590.990.53-0.940.670.920.85-0.940.960.92
-0.83-0.8-0.7-0.9-0.980.97-0.790.7-0.83-0.85-0.46-0.82-0.71-0.56-0.46-0.46-0.48-0.38-0.940.850.4-0.890.95-0.76-0.75-0.81-0.47-0.48-0.46-0.41-0.491.00.681.00.84-0.15-0.39-0.36-0.95-0.34-0.94-0.45-0.96-0.881.0-0.83-0.75
0.810.780.810.670.48-0.550.75-0.70.850.840.50.470.820.130.50.50.560.450.66-0.70.00.77-0.680.770.730.840.490.521.00.690.51-0.4-0.7-0.46-0.480.660.420.860.70.410.67-0.450.550.67-0.470.80.72
0.830.780.660.980.94-0.980.75-0.850.910.890.480.780.720.430.480.480.490.380.97-0.96-0.160.95-0.940.730.70.820.510.510.550.520.53-0.94-0.83-0.97-0.920.110.410.390.940.350.92-0.960.550.96-0.970.820.69
0.790.720.620.990.82-0.890.68-0.960.940.880.340.830.670.470.340.340.650.230.93-0.960.020.97-0.890.660.620.80.360.370.650.480.38-0.83-0.95-0.89-0.970.070.250.440.890.180.85-0.880.670.96-0.890.770.61
-0.84-0.8-0.7-0.91-0.970.97-0.790.72-0.85-0.86-0.45-0.83-0.71-0.56-0.45-0.45-0.5-0.38-0.950.870.38-0.90.95-0.76-0.75-0.82-0.47-0.47-0.48-0.42-0.490.990.71.00.86-0.15-0.39-0.37-0.95-0.33-0.941.0-0.47-0.97-0.89-0.83-0.75
1.01.00.970.810.88-0.880.99-0.640.920.970.730.620.970.30.730.730.430.690.91-0.83-0.430.89-0.960.990.971.00.730.740.820.70.74-0.82-0.62-0.83-0.60.660.660.740.960.640.96-0.830.80.820.77-0.830.97
0.960.990.990.660.83-0.80.99-0.440.810.890.77