Spirit Airlines Valuation
| SAVE Stock | USD 3.54 0.14 3.80% |
At this time, the company appears to be fairly valued. Spirit Airlines has a current Real Value of $3.4 per share. The regular price of the company is $3.54. Our model measures the value of Spirit Airlines from inspecting the company fundamentals such as Shares Outstanding of 109.5 M, operating margin of (0.12) %, and Return On Equity of -0.33 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and exiting overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Spirit Airlines' valuation include:
Price Book 0.4034 | Enterprise Value 6.3 B | Enterprise Value Ebitda (55.64) | Price Sales 0.0853 | Forward PE 35.461 |
Fairly Valued
Today
Please note that Spirit Airlines' price fluctuation is risky at this time. Calculation of the real value of Spirit Airlines is based on 3 months time horizon. Increasing Spirit Airlines' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Spirit Airlines is useful when determining the fair value of the Spirit stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Spirit Airlines. Since Spirit Airlines is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Spirit Stock. However, Spirit 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 3.54 | Real 3.4 | Target 18.75 | Hype 3.54 | Naive 3.01 |
The real value of Spirit Stock, also known as its intrinsic value, is the underlying worth of Spirit Airlines Company, which is reflected in its stock price. It is based on Spirit Airlines' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Spirit 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 Spirit 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 Spirit Airlines helps investors to forecast how Spirit 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 Spirit Airlines more accurately as focusing exclusively on Spirit 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 Spirit Airlines' intrinsic value based on its ongoing forecasts of Spirit Airlines' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Spirit Airlines' closest peers. When choosing an evaluation method for Spirit Airlines, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Spirit Airlines Investments |
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Spirit Valuation Trend
Knowing Spirit Airlines' actual value is paramount for traders to make sound investment determinations. Spirit Airlines' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Spirit Airlines' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Spirit Airlines' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Spirit Market Cap
Spirit Airlines is rated below average in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 79.63 Billion. Spirit Airlines adds roughly 387.63 Million in market capitalization claiming only tiny portion of equities under Industrials industry.Spirit Airlines Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Spirit Airlines's current stock value. Our valuation model uses many indicators to compare Spirit Airlines value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Spirit Airlines competition to find correlations between indicators driving Spirit Airlines's intrinsic value. More Info.Spirit Airlines is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Spirit Airlines is roughly 11.28 . As of April 29, 2024, Price To Book Ratio is expected to decline to 1.16. Comparative valuation analysis is a catch-all model that can be used if you cannot value Spirit Airlines by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Spirit Airlines' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Spirit Airlines' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Spirit Airlines' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Spirit Airlines and how it compares across the competition.
About Spirit Airlines Valuation
The stock valuation mechanism determines the current worth of Spirit Airlines on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Spirit Airlines. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Spirit Airlines based exclusively on its fundamental and basic technical indicators. By analyzing Spirit Airlines's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Spirit Airlines's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Spirit Airlines. We calculate exposure to Spirit Airlines's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Spirit Airlines's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 590.9 M | 594.4 M | |
| Pretax Profit Margin | (0.10) | (0.1) | |
| Operating Profit Margin | (0.09) | (0.09) | |
| Net Loss | (0.08) | (0.08) | |
| Gross Profit Margin | 0.11 | 0.10 |
8 Steps to conduct Spirit Airlines' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Spirit 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 Spirit Airlines' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Spirit Airlines' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Spirit Airlines' revenue streams: Identify Spirit Airlines' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Spirit Airlines' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Spirit Airlines' growth potential: Evaluate Spirit Airlines' management, business model, and growth potential.
- Determine Spirit 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 Spirit Airlines' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Spirit Airlines represents a small ownership stake in the entity. As a stockholder of Spirit, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Spirit Airlines Dividends Analysis For Valuation
The current year's Dividends Paid is expected to grow to about 742 M, whereas Dividend Yield is forecasted to decline to 0.02. . At present, Spirit Airlines' Price Earnings To Growth Ratio is projected to slightly decrease based on the last few years of reporting.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 706.7 M | 742 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.26 | 0.23 | |
| Dividend Paid And Capex Coverage Ratio | 0.89 | 0.53 |
There are various types of dividends Spirit Airlines can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Spirit shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Spirit Airlines directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Spirit pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Spirit Airlines by the value of the dividends paid out.
Spirit Airlines Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Spirit 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 | 109.2 M | |
| Quarterly Earnings Growth Y O Y | -0.141 | |
| Forward Price Earnings | 35.461 |
Spirit Airlines Current Valuation Indicators
Valuation refers to the process of determining the present value of Spirit Airlines and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Spirit we look at many different elements of the entity such as Spirit's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Spirit Airlines' valuation analysis is also 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 Spirit 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 Spirit 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 Spirit 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 Spirit Airlines' worth.When determining whether Spirit Airlines is a strong investment it is important to analyze Spirit 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 Spirit Airlines' future performance. For an informed investment choice regarding Spirit Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Spirit Airlines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real. For information on how to trade Spirit Stock refer to our How to Trade Spirit Stock guide.You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Complementary Tools for Spirit Stock analysis
When running Spirit Airlines' price analysis, check to measure Spirit Airlines' 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 Spirit Airlines is operating at the current time. Most of Spirit Airlines' value examination focuses on studying past and present price action to predict the probability of Spirit Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Spirit Airlines' price. Additionally, you may evaluate how the addition of Spirit Airlines to your portfolios can decrease your overall portfolio volatility.
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Is Spirit Airlines' 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 Spirit Airlines. If investors know Spirit 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 Spirit 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 (0.14) | Earnings Share (4.10) | Revenue Per Share 49.129 | Quarterly Revenue Growth (0.05) | Return On Assets (0.03) |
The market value of Spirit Airlines is measured differently than its book value, which is the value of Spirit that is recorded on the company's balance sheet. Investors also form their own opinion of Spirit Airlines' value that differs from its market value or its book value, called intrinsic value, which is Spirit 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 Spirit Airlines' market value can be influenced by many factors that don't directly affect Spirit 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 Spirit Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Spirit Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Spirit 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.