SPIRIT AIRLINES (Germany) Alpha and Beta Analysis
| S64 Stock | EUR 0.96 0.00 0.00% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as SPIRIT AIRLINES. It also helps investors analyze the systematic and unsystematic risks associated with investing in SPIRIT AIRLINES over a specified time horizon. Remember, high SPIRIT AIRLINES's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to SPIRIT AIRLINES's market risk premium analysis include:
Beta 3.45 | Alpha (0.58) | Risk 14.26 | Sharpe Ratio (0.01) | Expected Return (0.20) |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
SPIRIT |
SPIRIT AIRLINES Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. SPIRIT AIRLINES market risk premium is the additional return an investor will receive from holding SPIRIT AIRLINES long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in SPIRIT AIRLINES. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate SPIRIT AIRLINES's performance over market.| α | -0.58 | β | 3.45 |
SPIRIT AIRLINES Fundamentals Vs Peers
Comparing SPIRIT AIRLINES's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze SPIRIT AIRLINES's direct or indirect competition across all of the common fundamentals between SPIRIT AIRLINES and the related equities. This way, we can detect undervalued stocks with similar characteristics as SPIRIT AIRLINES or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of SPIRIT AIRLINES's fundamental indicators could also be used in its relative valuation, which is a method of valuing SPIRIT AIRLINES by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare SPIRIT AIRLINES to competition |
| Fundamentals | SPIRIT AIRLINES | Peer Average |
| Current Valuation | 6.12 B | 16.62 B |
| Price To Book | 1.17 X | 9.51 X |
| Price To Sales | 0.46 X | 11.42 X |
| Revenue | 5.07 B | 9.43 B |
| EBITDA | (286.86 M) | 3.9 B |
| Net Income | (554.15 M) | 570.98 M |
| Total Debt | 3.2 B | 5.32 B |
SPIRIT AIRLINES Opportunities
SPIRIT AIRLINES Return and Market Media
The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About SPIRIT AIRLINES Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including SPIRIT or other stocks. Alpha measures the amount that position in SPIRIT AIRLINES has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards SPIRIT AIRLINES in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, SPIRIT AIRLINES's short interest history, or implied volatility extrapolated from SPIRIT AIRLINES options trading.
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Other Information on Investing in SPIRIT Stock
SPIRIT AIRLINES financial ratios help investors to determine whether SPIRIT Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in SPIRIT with respect to the benefits of owning SPIRIT AIRLINES security.