Alaska Air Group Stock Beta
| ALK Stock | USD 45.08 0.45 0.99% |
Alaska Air Group fundamentals help investors to digest information that contributes to Alaska Air's financial success or failures. It also enables traders to predict the movement of Alaska Stock. The fundamental analysis module provides a way to measure Alaska Air's 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 Alaska Air stock.
Alaska | Beta |
Alaska Air Group Company Beta Analysis
Alaska Air's 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 Alaska Air Beta | 1.63 |
Most of Alaska Air's 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, Alaska Air Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Alaska Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Alaska Air is extremely important. It helps to project a fair market value of Alaska Stock properly, considering its historical fundamentals such as Beta. Since Alaska Air's 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 Alaska Air's 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 Alaska Air's interrelated accounts and indicators.
Click cells to compare fundamentals
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, Alaska Air Group has a Beta of 1.633. This is 19.2% higher than that of the Passenger Airlines sector and 60.1% higher than that of the Industrials industry. The beta for all United States stocks is notably lower than that of the firm.
Alaska Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Alaska Air's 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 Alaska Air could also be used in its relative valuation, which is a method of valuing Alaska Air by comparing valuation metrics of similar companies.Alaska Air is currently under evaluation in beta category among related companies.
Alaska Air Institutional Holders
Institutional Holdings refers to the ownership stake in Alaska Air that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Alaska Air's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Alaska Air's value.| Shares | Fmr Inc | 2023-12-31 | 1.8 M | Massachusetts Financial Services Company | 2023-12-31 | 1.6 M | Us Global Investors Inc | 2023-12-31 | 1.4 M | Bank Of New York Mellon Corp | 2023-12-31 | 1.3 M | Diamond Hill Capital Management Inc | 2023-12-31 | 1.2 M | Citadel Advisors Llc | 2023-09-30 | 1.2 M | Brandywine Global Investment Mgmt Llc | 2023-12-31 | 1.1 M | American Century Companies Inc | 2023-12-31 | 1 M | Par Capital Management Inc | 2023-12-31 | 1 M | Blackrock Inc | 2023-12-31 | 16.5 M | Vanguard Group Inc | 2023-12-31 | 14 M |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Alaska Air will likely underperform.
Alaska Fundamentals
| Return On Equity | 0.0639 | ||||
| Return On Asset | 0.0333 | ||||
| Profit Margin | 0.02 % | ||||
| Operating Margin | (0.07) % | ||||
| Current Valuation | 7.27 B | ||||
| Shares Outstanding | 125.71 M | ||||
| Shares Owned By Insiders | 0.43 % | ||||
| Shares Owned By Institutions | 83.78 % | ||||
| Number Of Shares Shorted | 6.02 M | ||||
| Price To Earning | 112.95 X | ||||
| Price To Book | 1.26 X | ||||
| Price To Sales | 0.50 X | ||||
| Revenue | 10.43 B | ||||
| Gross Profit | 2.36 B | ||||
| EBITDA | 1.35 B | ||||
| Net Income | 235 M | ||||
| Cash And Equivalents | 338 M | ||||
| Cash Per Share | 24.83 X | ||||
| Total Debt | 3.82 B | ||||
| Debt To Equity | 1.03 % | ||||
| Current Ratio | 0.81 X | ||||
| Book Value Per Share | 31.64 X | ||||
| Cash Flow From Operations | 1.05 B | ||||
| Short Ratio | 2.67 X | ||||
| Earnings Per Share | 1.89 X | ||||
| Price To Earnings To Growth | 1.30 X | ||||
| Target Price | 56.44 | ||||
| Number Of Employees | 23.01 K | ||||
| Beta | 1.63 | ||||
| Market Capitalization | 5.72 B | ||||
| Total Asset | 15.83 B | ||||
| Retained Earnings | 4.54 B | ||||
| Working Capital | (1.47 B) | ||||
| Current Asset | 1.66 B | ||||
| Current Liabilities | 1.8 B | ||||
| Five Year Return | 1.95 % | ||||
| Net Asset | 15.83 B |
About Alaska Air Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Alaska Air Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alaska Air using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alaska Air 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.
Alaska Air Investors Sentiment
The influence of Alaska Air's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Alaska. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Alaska Air's public news can be used to forecast risks associated with an investment in Alaska. The trend in average sentiment can be used to explain how an investor holding Alaska can time the market purely based on public headlines and social activities around Alaska Air Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Alaska Air's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Alaska Air's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Alaska Air's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Alaska Air.
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 Alaska Air 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, Alaska Air's short interest history, or implied volatility extrapolated from Alaska Air options trading.
Pair Trading with Alaska Air
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alaska Air position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alaska Air will appreciate offsetting losses from the drop in the long position's value.Moving against Alaska Stock
| 0.87 | SRFM | Surf Air Mobility | PairCorr |
| 0.83 | HA | Hawaiian Holdings | PairCorr |
| 0.83 | AZ | A2Z Smart Technologies | PairCorr |
| 0.83 | BA | Boeing Earnings Call Today | PairCorr |
| 0.76 | AP | Ampco Pittsburgh | PairCorr |
The ability to find closely correlated positions to Alaska Air could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alaska Air when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alaska Air - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alaska Air Group to buy it.
The correlation of Alaska Air is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alaska Air moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alaska Air Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alaska Air can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Alaska Air Piotroski F Score and Alaska Air Altman Z Score analysis. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Complementary Tools for Alaska Stock analysis
When running Alaska Air's price analysis, check to measure Alaska Air's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alaska Air is operating at the current time. Most of Alaska Air's value examination focuses on studying past and present price action to predict the probability of Alaska Air's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alaska Air's price. Additionally, you may evaluate how the addition of Alaska Air to your portfolios can decrease your overall portfolio volatility.
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Is Alaska Air's industry 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 Alaska Air. If investors know Alaska 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 Alaska Air 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 2.484 | Earnings Share 1.89 | Revenue Per Share 82.383 | Quarterly Revenue Growth 0.016 | Return On Assets 0.0333 |
The market value of Alaska Air Group is measured differently than its book value, which is the value of Alaska that is recorded on the company's balance sheet. Investors also form their own opinion of Alaska Air's value that differs from its market value or its book value, called intrinsic value, which is Alaska Air's 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 Alaska Air's market value can be influenced by many factors that don't directly affect Alaska Air's 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 Alaska Air's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alaska Air is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alaska Air's 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.