Latam Airlines Group Stock Current Valuation
| LTM Stock | CLP 13.04 0.45 3.34% |
Valuation analysis of LATAM Airlines Group helps investors to measure LATAM Airlines' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns.
Undervalued
Today
Please note that LATAM Airlines' price fluctuation is very steady at this time. Calculation of the real value of LATAM Airlines Group is based on 3 months time horizon. Increasing LATAM Airlines' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since LATAM Airlines is currently traded on the exchange, buyers and sellers on that exchange determine the market value of LATAM Stock. However, LATAM Airlines' 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 13.04 | Real 15.37 | Hype 13.49 | Naive 13.53 |
The intrinsic value of LATAM Airlines' 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 LATAM Airlines' 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.
Estimating the potential upside or downside of LATAM Airlines Group helps investors to forecast how LATAM 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 LATAM Airlines more accurately as focusing exclusively on LATAM Airlines' fundamentals will not take into account other important factors: LATAM Airlines Group Company Current Valuation Analysis
LATAM Airlines' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current LATAM Airlines Current Valuation | 9.25 T |
Most of LATAM Airlines' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, LATAM Airlines Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, LATAM Airlines Group has a Current Valuation of 9.25 T. This is much higher than that of the Industrials sector and significantly higher than that of the Airlines industry. The current valuation for all Chile stocks is significantly lower than that of the firm.
LATAM Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses LATAM Airlines' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of LATAM Airlines could also be used in its relative valuation, which is a method of valuing LATAM Airlines by comparing valuation metrics of similar companies.LATAM Airlines is currently under evaluation in current valuation category among its peers.
LATAM Fundamentals
| Return On Equity | -13.27 | |||
| Return On Asset | -0.0096 | |||
| Profit Margin | (0.46) % | |||
| Operating Margin | (0.03) % | |||
| Current Valuation | 9.25 T | |||
| Shares Outstanding | 10.87 B | |||
| Shares Owned By Insiders | 30.03 % | |||
| Shares Owned By Institutions | 49.06 % | |||
| Price To Book | 12.82 X | |||
| Price To Sales | 7.42 X | |||
| Revenue | 4.88 B | |||
| Gross Profit | (79.47 M) | |||
| EBITDA | (3.34 B) | |||
| Net Income | (4.65 B) | |||
| Cash And Equivalents | 1.54 B | |||
| Cash Per Share | 2.53 X | |||
| Total Debt | 2.58 B | |||
| Current Ratio | 0.26 X | |||
| Book Value Per Share | (13.61) X | |||
| Cash Flow From Operations | (184.1 M) | |||
| Earnings Per Share | 724.55 X | |||
| Target Price | 81.58 | |||
| Number Of Employees | 31.35 K | |||
| Beta | 1.87 | |||
| Market Capitalization | 63.05 B | |||
| Total Asset | 13.31 B | |||
| Working Capital | (1.89 B) | |||
| Current Asset | 2.89 B | |||
| Current Liabilities | 4.78 B | |||
| Z Score | 14.4 | |||
| Annual Yield | 0.0001 % | |||
| Net Asset | 13.31 B |
About LATAM Airlines Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze LATAM Airlines Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of LATAM Airlines using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of LATAM Airlines Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with LATAM Airlines
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 LATAM Airlines 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 LATAM Airlines will appreciate offsetting losses from the drop in the long position's value.Moving together with LATAM Stock
| 0.87 | AFPCAPITAL | AFP Capital SA | PairCorr |
Moving against LATAM Stock
The ability to find closely correlated positions to LATAM Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LATAM Airlines 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 LATAM Airlines - 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 LATAM Airlines Group to buy it.
The correlation of LATAM Airlines 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 LATAM Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LATAM Airlines 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 LATAM Airlines 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.Additional Information and Resources on Investing in LATAM Stock
When determining whether LATAM Airlines Group is a strong investment it is important to analyze LATAM Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact LATAM Airlines' future performance. For an informed investment choice regarding LATAM Stock, refer to the following important reports:Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LATAM Airlines 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 board of governors. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.