LATAM Airlines Valuation
| LTM Stock | CLP 13.50 0.13 0.95% |
At this time, the entity appears to be fairly valued. LATAM Airlines Group secures a last-minute Real Value of 13.03 per share. The latest price of the entity is 13.5. Our model forecasts the value of LATAM Airlines Group from inspecting the entity fundamentals such as current valuation of 9.25 T, and Profit Margin of (0.46) % as well as reviewing its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that LATAM Airlines' price fluctuation is not too volatile 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 13.5 | Real 13.03 | Hype 13.5 | Naive 13.52 |
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 Total Value Analysis
LATAM Airlines Group is now expected to have takeover price of 9.25 T with market capitalization of 63.05 B, debt of 2.58 B, and cash on hands of 1.54 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the LATAM Airlines fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
9.25 T | 63.05 B | 2.58 B | 1.54 B |
LATAM Airlines Investor Information
About 30.0% of the company outstanding shares are owned by corporate insiders. The company recorded earning per share (EPS) of 724.55. LATAM Airlines Group last dividend was issued on the 25th of May 2020. Based on the key indicators related to LATAM Airlines' liquidity, profitability, solvency, and operating efficiencyBased on the analysis of, LATAM Airlines Group is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.LATAM Airlines Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of LATAM suggests not a very effective usage of assets in December.LATAM Airlines Ownership Allocation
LATAM Airlines Group maintains a total of 10.87 Billion outstanding shares. LATAM Airlines Group holds noticeable amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company has, if the real value of the entity is less than the current market value, you may not be able to make money on it.LATAM Airlines Profitability Analysis
The company reported the revenue of 4.88 B. Net Loss for the year was (4.65 B) with loss before overhead, payroll, taxes, and interest of (79.47 M).About LATAM Airlines Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of LATAM Airlines Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of LATAM Airlines Group based exclusively on its fundamental and basic technical indicators. By analyzing LATAM Airlines's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of LATAM Airlines's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of LATAM Airlines. We calculate exposure to LATAM Airlines's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of LATAM Airlines's related companies.LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, the Asia Pacific, and rest of Latin America. On May 26, 2020, LATAM Airlines Group S.A., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. LATAM AIRLINES is traded on Commodity Exchange in Exotistan.
8 Steps to conduct LATAM Airlines' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates LATAM Airlines' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct LATAM Airlines' valuation analysis, follow these 8 steps:- Gather financial information: Obtain LATAM Airlines' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine LATAM Airlines' revenue streams: Identify LATAM Airlines' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research LATAM Airlines' industry and market trends, including the size of the market, growth rate, and competition.
- Establish LATAM Airlines' growth potential: Evaluate LATAM Airlines' management, business model, and growth potential.
- Determine LATAM Airlines' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate LATAM Airlines' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.