LATAM Airlines Valuation
| LTM Stock | USD 32.07 0.12 0.38% |
At this time, the entity appears to be undervalued. LATAM Airlines Group secures a last-minute Real Value of $36.37 per share. The latest price of the entity is $32.07. Our model forecasts the value of LATAM Airlines Group from inspecting the entity fundamentals such as profit margin of 0.08 %, and Current Valuation of 14.99 B as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting LATAM Airlines' valuation include:
Price Book 13.6387 | Enterprise Value | Enterprise Value Ebitda 8.3168 | Price Sales 0.7687 | Forward PE 10.1729 |
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.
The fair value of the LATAM stock is determined by what a typical buyer is willing to pay for full or partial control of LATAM Airlines Group. 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 32.07 | Real 36.37 | Hype 31.99 | Naive 33.19 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use LATAM Airlines' intrinsic value based on its ongoing forecasts of LATAM Airlines' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against LATAM Airlines' closest peers.
LATAM Airlines Cash |
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LATAM Valuation Trend
Knowing LATAM Airlines' actual value is paramount for traders when making sound investment determinations. Using both LATAM Airlines' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
LATAM Revenue by Product
LATAM Airlines Total Value Analysis
LATAM Airlines Group is now anticipated to have company total value of 14.99 B with market capitalization of 9.86 B, debt of 7.15 B, and cash on hands of 1.49 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the LATAM Airlines fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
14.99 B | 9.86 B | 7.15 B | 1.49 B |
LATAM Airlines Investor Information
About 43.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 9th of May 2024. LATAM Airlines Group had 1:2000 split on the 24th of July 2024. Based on the key indicators related to LATAM Airlines' liquidity, profitability, solvency, and operating efficiency, LATAM Airlines Group is performing exceptionally good at this time. It has a great probability to report excellent financial results in April.LATAM Airlines Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. LATAM Airlines has an asset utilization ratio of 84.13 percent. This suggests that the Company is making $0.84 for each dollar of assets. An increasing asset utilization means that LATAM Airlines Group is more efficient with each dollar of assets it utilizes for everyday operations.LATAM Airlines Ownership Allocation
LATAM Airlines Group maintains a total of 302.22 Million outstanding shares. 30% of LATAM Airlines outstanding shares are owned by institutional investors. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Therefore, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. 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 last year's revenue of 12.83 B. Total Income to common stockholders was 976.97 M with profit before taxes, overhead, and interest of 3.27 B.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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.3 B | 1.8 B | |
| Pretax Profit Margin | 0.08 | 0.08 | |
| Operating Profit Margin | 0.12 | 0.13 | |
| Net Profit Margin | 0.08 | 0.08 | |
| Gross Profit Margin | 0.25 | 0.30 |
LATAM Airlines Quarterly Retained Earnings |
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LATAM Airlines Growth Indicators
Investing in growth stocks can be very risky. If the company such as LATAM Airlines does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 604.4 B | |
| Quarterly Earnings Growth Y O Y | 1.102 | |
| Forward Price Earnings | 10.1729 |
LATAM Airlines Current Valuation Indicators
LATAM Airlines' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final LATAM Airlines' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as LATAM Airlines, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use LATAM Airlines' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes LATAM Airlines' worth.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 estimate. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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.
Quarterly Earnings Growth 1.102 | Earnings Share 2.99 | Revenue Per Share | Quarterly Revenue Growth 0.039 | Return On Assets |
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.