Latam Airlines Group Stock Beta
| LTM Stock | USD 26.95 0.09 0.34% |
LATAM Airlines Group fundamentals help investors to digest information that contributes to LATAM Airlines' financial success or failures. It also enables traders to predict the movement of LATAM Stock. The fundamental analysis module provides a way to measure LATAM Airlines' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to LATAM Airlines stock.
LATAM | Beta |
LATAM Airlines Group Company Beta Analysis
LATAM Airlines' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current LATAM Airlines Beta | 1.97 |
Most of LATAM Airlines' fundamental indicators, such as Beta, 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.
LATAM Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for LATAM Airlines is extremely important. It helps to project a fair market value of LATAM Stock properly, considering its historical fundamentals such as Beta. Since LATAM Airlines' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of LATAM Airlines' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of LATAM Airlines' interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, LATAM Airlines Group has a Beta of 1.97. This is 43.8% higher than that of the Passenger Airlines sector and 93.14% higher than that of the Industrials industry. The beta for all United States stocks is notably lower than that of the firm.
LATAM Beta 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 Beta 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 beta category among its peers.
LATAM Airlines ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, LATAM Airlines' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to LATAM Airlines' managers, analysts, and investors.Environmental | Governance | Social |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, LATAM Airlines will likely underperform.
LATAM Fundamentals
| Price To Earning | 10.10 X | ||||
| Revenue | 11.64 B | ||||
| EBITDA | 2.5 B | ||||
| Net Income | 581.83 M | ||||
| Cash And Equivalents | 1.49 B | ||||
| Cash Per Share | 2.45 X | ||||
| Total Debt | 7.04 B | ||||
| Debt To Equity | 3.31 % | ||||
| Current Ratio | 0.58 X | ||||
| Book Value Per Share | 6.65 X | ||||
| Cash Flow From Operations | 1.77 B | ||||
| Earnings Per Share | 0.31 X | ||||
| Price To Earnings To Growth | (0.19) X | ||||
| Number Of Employees | 38.06 K | ||||
| Beta | 1.97 | ||||
| Market Capitalization | 1.83 B | ||||
| Total Asset | 14.67 B | ||||
| Retained Earnings | 464.41 M | ||||
| Working Capital | (1.48 B) | ||||
| Current Asset | 108.74 M | ||||
| Current Liabilities | 200.55 M | ||||
| Net Asset | 14.67 B | ||||
| Last Dividend Paid | 0.094 |
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.
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Is Passenger Airlines space 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 LATAM Airlines. If investors know LATAM 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 LATAM Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of LATAM Airlines Group is measured differently than its book value, which is the value of LATAM that is recorded on the company's balance sheet. Investors also form their own opinion of LATAM Airlines' value that differs from its market value or its book value, called intrinsic value, which is LATAM Airlines' 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 LATAM Airlines' market value can be influenced by many factors that don't directly affect LATAM Airlines' 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 LATAM Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if LATAM Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LATAM Airlines' 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.