Alaska Air Fair Value
AL
The fair market value of ALK stock is 39.59 USD. Relative to the market price of 51.67 USD Alaska Air is overvalued by 23.4%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Alaska Air Valuation
Current ALK share ticker price is 51.67 USD.
The fair value level of 39.59 USD can be considered as an effective entry point for long-term investors to start investing in ALK stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 23% higher its fair value
Current price is 55% higher its minimum value
Current price is 214% lower its maximum value
Market price:
ALK stock is overvalued
It means the current price may concern as a Risky Entry Point
Alaska Air Group Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
91.95
2
Median P/E over 5 years
22.45
3
Minimum P/E over 5 years
13.1
4
Earning per share (last 12 months)
1.76 USD
Maximum value
1
x
4
=
162.16 USD
Fair value
2
x
4
=
39.59 USD
Minimum value
3
x
4
=
23.09 USD
Alaska Air Group Inc price metrics
-6.65
Annual return (geometric mean)
48.49
Risk (standard deviation) of returns
β
1.62
Beta (volatility compared to market)