Intrinsic value of Alaska Air Group - ALK

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$91.02

  Intrinsic Value

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  Value-price divergence*

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$91.02

 
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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ALK stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 11.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  5.95
  10.70
  10.13
  9.62
  9.16
  8.74
  8.37
  8.03
  7.73
  7.45
  7.21
  6.99
  6.79
  6.61
  6.45
  6.30
  6.17
  6.06
  5.95
  5.86
  5.77
  5.69
  5.62
  5.56
  5.51
  5.45
  5.41
  5.37
  5.33
  5.30
  5.27
Revenue, $m
  5,931
  6,566
  7,231
  7,926
  8,652
  9,408
  10,195
  11,014
  11,864
  12,749
  13,668
  14,623
  15,615
  16,648
  17,721
  18,838
  20,001
  21,213
  22,475
  23,791
  25,164
  26,596
  28,092
  29,654
  31,287
  32,993
  34,778
  36,645
  38,599
  40,644
  42,785
Variable operating expenses, $m
 
  5,022
  5,511
  6,022
  6,556
  7,112
  7,691
  8,293
  8,918
  9,569
  10,245
  10,753
  11,483
  12,243
  13,032
  13,854
  14,709
  15,600
  16,528
  17,496
  18,505
  19,559
  20,659
  21,808
  23,008
  24,263
  25,576
  26,948
  28,385
  29,889
  31,464
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  4,582
  5,022
  5,511
  6,022
  6,556
  7,112
  7,691
  8,293
  8,918
  9,569
  10,245
  10,753
  11,483
  12,243
  13,032
  13,854
  14,709
  15,600
  16,528
  17,496
  18,505
  19,559
  20,659
  21,808
  23,008
  24,263
  25,576
  26,948
  28,385
  29,889
  31,464
Operating income, $m
  1,349
  1,544
  1,720
  1,904
  2,096
  2,296
  2,504
  2,721
  2,946
  3,180
  3,423
  3,869
  4,132
  4,405
  4,689
  4,985
  5,293
  5,613
  5,947
  6,295
  6,659
  7,038
  7,433
  7,847
  8,279
  8,730
  9,203
  9,697
  10,214
  10,755
  11,321
EBITDA, $m
  1,712
  2,077
  2,287
  2,507
  2,737
  2,976
  3,225
  3,484
  3,753
  4,033
  4,324
  4,626
  4,940
  5,266
  5,606
  5,959
  6,327
  6,710
  7,110
  7,526
  7,960
  8,414
  8,887
  9,381
  9,897
  10,437
  11,002
  11,592
  12,210
  12,857
  13,535
Interest expense (income), $m
  24
  93
  118
  144
  172
  200
  230
  261
  294
  327
  362
  399
  437
  476
  517
  559
  604
  650
  698
  748
  800
  854
  911
  970
  1,032
  1,097
  1,164
  1,235
  1,309
  1,386
  1,467
Earnings before tax, $m
  1,345
  1,451
  1,602
  1,760
  1,924
  2,096
  2,274
  2,460
  2,652
  2,853
  3,061
  3,470
  3,695
  3,929
  4,172
  4,425
  4,689
  4,963
  5,249
  5,548
  5,859
  6,184
  6,523
  6,877
  7,247
  7,634
  8,038
  8,462
  8,905
  9,369
  9,854
Tax expense, $m
  531
  392
  433
  475
  520
  566
  614
  664
  716
  770
  826
  937
  998
  1,061
  1,127
  1,195
  1,266
  1,340
  1,417
  1,498
  1,582
  1,670
  1,761
  1,857
  1,957
  2,061
  2,170
  2,285
  2,404
  2,530
  2,661
Net income, $m
  814
  1,059
  1,170
  1,285
  1,405
  1,530
  1,660
  1,795
  1,936
  2,082
  2,234
  2,533
  2,698
  2,868
  3,046
  3,231
  3,423
  3,623
  3,832
  4,050
  4,277
  4,514
  4,761
  5,020
  5,290
  5,573
  5,868
  6,177
  6,501
  6,839
  7,194

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,580
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  9,962
  9,273
  10,213
  11,195
  12,220
  13,288
  14,400
  15,556
  16,758
  18,007
  19,305
  20,654
  22,056
  23,514
  25,030
  26,608
  28,251
  29,961
  31,744
  33,603
  35,542
  37,565
  39,678
  41,885
  44,190
  46,601
  49,122
  51,759
  54,518
  57,407
  60,431
Adjusted assets (=assets-cash), $m
  8,382
  9,273
  10,213
  11,195
  12,220
  13,288
  14,400
  15,556
  16,758
  18,007
  19,305
  20,654
  22,056
  23,514
  25,030
  26,608
  28,251
  29,961
  31,744
  33,603
  35,542
  37,565
  39,678
  41,885
  44,190
  46,601
  49,122
  51,759
  54,518
  57,407
  60,431
Revenue / Adjusted assets
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
  0.708
Average production assets, $m
  5,306
  5,876
  6,471
  7,094
  7,743
  8,420
  9,124
  9,857
  10,619
  11,410
  12,233
  13,087
  13,976
  14,900
  15,860
  16,860
  17,901
  18,985
  20,115
  21,293
  22,522
  23,804
  25,142
  26,541
  28,002
  29,529
  31,126
  32,797
  34,546
  36,376
  38,293
Working capital, $m
  -485
  -1,930
  -2,126
  -2,330
  -2,544
  -2,766
  -2,997
  -3,238
  -3,488
  -3,748
  -4,018
  -4,299
  -4,591
  -4,894
  -5,210
  -5,538
  -5,880
  -6,237
  -6,608
  -6,995
  -7,398
  -7,819
  -8,259
  -8,718
  -9,198
  -9,700
  -10,225
  -10,774
  -11,348
  -11,949
  -12,579
Total debt, $m
  2,964
  3,361
  4,114
  4,900
  5,721
  6,577
  7,467
  8,393
  9,356
  10,356
  11,396
  12,477
  13,600
  14,767
  15,982
  17,246
  18,562
  19,932
  21,360
  22,849
  24,402
  26,023
  27,715
  29,483
  31,330
  33,260
  35,279
  37,392
  39,602
  41,916
  44,338
Total liabilities, $m
  7,031
  7,428
  8,181
  8,967
  9,788
  10,644
  11,534
  12,460
  13,423
  14,423
  15,463
  16,544
  17,667
  18,834
  20,049
  21,313
  22,629
  23,999
  25,427
  26,916
  28,469
  30,090
  31,782
  33,550
  35,397
  37,327
  39,346
  41,459
  43,669
  45,983
  48,405
Total equity, $m
  2,931
  1,845
  2,032
  2,228
  2,432
  2,644
  2,866
  3,096
  3,335
  3,583
  3,842
  4,110
  4,389
  4,679
  4,981
  5,295
  5,622
  5,962
  6,317
  6,687
  7,073
  7,476
  7,896
  8,335
  8,794
  9,274
  9,775
  10,300
  10,849
  11,424
  12,026
Total liabilities and equity, $m
  9,962
  9,273
  10,213
  11,195
  12,220
  13,288
  14,400
  15,556
  16,758
  18,006
  19,305
  20,654
  22,056
  23,513
  25,030
  26,608
  28,251
  29,961
  31,744
  33,603
  35,542
  37,566
  39,678
  41,885
  44,191
  46,601
  49,121
  51,759
  54,518
  57,407
  60,431
Debt-to-equity ratio
  1.011
  1.820
  2.020
  2.200
  2.350
  2.490
  2.610
  2.710
  2.810
  2.890
  2.970
  3.040
  3.100
  3.160
  3.210
  3.260
  3.300
  3.340
  3.380
  3.420
  3.450
  3.480
  3.510
  3.540
  3.560
  3.590
  3.610
  3.630
  3.650
  3.670
  3.690
Adjusted equity ratio
  0.161
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  814
  1,059
  1,170
  1,285
  1,405
  1,530
  1,660
  1,795
  1,936
  2,082
  2,234
  2,533
  2,698
  2,868
  3,046
  3,231
  3,423
  3,623
  3,832
  4,050
  4,277
  4,514
  4,761
  5,020
  5,290
  5,573
  5,868
  6,177
  6,501
  6,839
  7,194
Depreciation, amort., depletion, $m
  363
  533
  567
  603
  641
  680
  721
  763
  807
  853
  900
  756
  808
  861
  917
  975
  1,035
  1,097
  1,163
  1,231
  1,302
  1,376
  1,453
  1,534
  1,619
  1,707
  1,799
  1,896
  1,997
  2,103
  2,213
Funds from operations, $m
  1,475
  1,593
  1,737
  1,888
  2,046
  2,210
  2,381
  2,559
  2,743
  2,935
  3,135
  3,290
  3,505
  3,730
  3,963
  4,205
  4,458
  4,721
  4,995
  5,281
  5,579
  5,890
  6,215
  6,554
  6,909
  7,280
  7,667
  8,073
  8,497
  8,942
  9,407
Change in working capital, $m
  89
  -187
  -196
  -204
  -213
  -222
  -231
  -241
  -250
  -260
  -270
  -281
  -292
  -303
  -316
  -328
  -342
  -356
  -371
  -387
  -404
  -421
  -440
  -459
  -480
  -502
  -525
  -549
  -574
  -601
  -630
Cash from operations, $m
  1,386
  2,283
  1,933
  2,093
  2,259
  2,432
  2,612
  2,799
  2,994
  3,195
  3,405
  3,571
  3,797
  4,033
  4,278
  4,534
  4,800
  5,077
  5,366
  5,668
  5,982
  6,311
  6,655
  7,013
  7,389
  7,781
  8,192
  8,622
  9,072
  9,543
  10,037
Maintenance CAPEX, $m
  0
  -307
  -340
  -374
  -410
  -448
  -487
  -527
  -570
  -614
  -660
  -707
  -756
  -808
  -861
  -917
  -975
  -1,035
  -1,097
  -1,163
  -1,231
  -1,302
  -1,376
  -1,453
  -1,534
  -1,619
  -1,707
  -1,799
  -1,896
  -1,997
  -2,103
New CAPEX, $m
  -678
  -571
  -595
  -622
  -649
  -677
  -704
  -733
  -762
  -791
  -822
  -855
  -888
  -924
  -961
  -1,000
  -1,041
  -1,084
  -1,130
  -1,178
  -1,229
  -1,282
  -1,339
  -1,398
  -1,461
  -1,527
  -1,597
  -1,671
  -1,749
  -1,830
  -1,916
Cash from investing activities, $m
  -2,622
  -878
  -935
  -996
  -1,059
  -1,125
  -1,191
  -1,260
  -1,332
  -1,405
  -1,482
  -1,562
  -1,644
  -1,732
  -1,822
  -1,917
  -2,016
  -2,119
  -2,227
  -2,341
  -2,460
  -2,584
  -2,715
  -2,851
  -2,995
  -3,146
  -3,304
  -3,470
  -3,645
  -3,827
  -4,019
Free cash flow, $m
  -1,236
  1,405
  998
  1,096
  1,200
  1,308
  1,421
  1,539
  1,662
  1,790
  1,923
  2,009
  2,152
  2,301
  2,456
  2,617
  2,784
  2,958
  3,139
  3,327
  3,523
  3,727
  3,940
  4,162
  4,394
  4,635
  4,888
  5,152
  5,427
  5,716
  6,017
Issuance/(repayment) of debt, $m
  1,795
  716
  752
  787
  821
  855
  890
  926
  963
  1,000
  1,040
  1,080
  1,123
  1,168
  1,215
  1,264
  1,316
  1,370
  1,428
  1,489
  1,553
  1,621
  1,692
  1,768
  1,847
  1,931
  2,019
  2,112
  2,210
  2,314
  2,423
Issuance/(repurchase) of shares, $m
  -193
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,627
  716
  752
  787
  821
  855
  890
  926
  963
  1,000
  1,040
  1,080
  1,123
  1,168
  1,215
  1,264
  1,316
  1,370
  1,428
  1,489
  1,553
  1,621
  1,692
  1,768
  1,847
  1,931
  2,019
  2,112
  2,210
  2,314
  2,423
Total cash flow (excl. dividends), $m
  391
  2,121
  1,750
  1,883
  2,021
  2,163
  2,312
  2,465
  2,625
  2,791
  2,963
  3,089
  3,275
  3,469
  3,671
  3,881
  4,100
  4,328
  4,567
  4,816
  5,076
  5,348
  5,632
  5,929
  6,240
  6,566
  6,907
  7,264
  7,638
  8,030
  8,440
Retained Cash Flow (-), $m
  -520
  -175
  -187
  -195
  -204
  -213
  -221
  -230
  -239
  -249
  -258
  -268
  -279
  -290
  -302
  -314
  -327
  -340
  -355
  -370
  -386
  -403
  -420
  -439
  -459
  -480
  -502
  -525
  -549
  -575
  -602
Prev. year cash balance distribution, $m
 
  1,261
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,207
  1,563
  1,687
  1,817
  1,951
  2,090
  2,235
  2,386
  2,542
  2,704
  2,821
  2,996
  3,179
  3,369
  3,567
  3,773
  3,988
  4,212
  4,446
  4,690
  4,945
  5,212
  5,490
  5,782
  6,086
  6,405
  6,739
  7,089
  7,455
  7,838
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  3,075
  1,431
  1,469
  1,496
  1,512
  1,517
  1,510
  1,491
  1,460
  1,418
  1,340
  1,279
  1,209
  1,131
  1,047
  959
  868
  776
  685
  596
  511
  432
  360
  294
  237
  187
  145
  110
  81
  59
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Alaska Air Group, Inc., through its subsidiaries, provides passengers and cargo air transportation services primarily in the United States. The company operates through three segments: Alaska Mainline, Alaska Regional, and Horizon. It has a network of approximately 1,200 daily flights to 118 destinations across the United States, Mexico, Canada, Costa Rica, and Cuba. The company was founded in 1932 and is based in Seattle, Washington.

FINANCIAL RATIOS  of  Alaska Air Group (ALK)

Valuation Ratios
P/E Ratio 13.8
Price to Sales 1.9
Price to Book 3.8
Price to Tangible Book
Price to Cash Flow 8.1
Price to Free Cash Flow 15.9
Growth Rates
Sales Growth Rate 5.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -18.4%
Cap. Spend. - 3 Yr. Gr. Rate 3.6%
Financial Strength
Quick Ratio 5
Current Ratio 0
LT Debt to Equity 90.2%
Total Debt to Equity 101.1%
Interest Coverage 57
Management Effectiveness
Return On Assets 10%
Ret/ On Assets - 3 Yr. Avg. 11.3%
Return On Total Capital 18.1%
Ret/ On T. Cap. - 3 Yr. Avg. 22.3%
Return On Equity 30.5%
Return On Equity - 3 Yr. Avg. 32.3%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 44.9%
Gross Margin - 3 Yr. Avg. 42.3%
EBITDA Margin 29.2%
EBITDA Margin - 3 Yr. Avg. 27.6%
Operating Margin 22.7%
Oper. Margin - 3 Yr. Avg. 21.3%
Pre-Tax Margin 22.7%
Pre-Tax Margin - 3 Yr. Avg. 21.4%
Net Profit Margin 13.7%
Net Profit Margin - 3 Yr. Avg. 13.4%
Effective Tax Rate 39.5%
Eff/ Tax Rate - 3 Yr. Avg. 37.6%
Payout Ratio 16.7%

ALK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ALK stock intrinsic value calculation we used $5931 million for the last fiscal year's total revenue generated by Alaska Air Group. The default revenue input number comes from 2016 income statement of Alaska Air Group. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ALK stock valuation model: a) initial revenue growth rate of 10.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for ALK is calculated based on our internal credit rating of Alaska Air Group, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Alaska Air Group.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ALK stock the variable cost ratio is equal to 76.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ALK stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Alaska Air Group.

Corporate tax rate of 27% is the nominal tax rate for Alaska Air Group. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ALK stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ALK are equal to 89.5%.

Life of production assets of 17.3 years is the average useful life of capital assets used in Alaska Air Group operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ALK is equal to -29.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2931 million for Alaska Air Group - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 123.204 million for Alaska Air Group is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Alaska Air Group at the current share price and the inputted number of shares is $11.2 billion.


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COMPANY NEWS

▶ Will New Cuba Travel Policy Hurt U.S. Airlines?   [Jun-19-17 03:48PM  Zacks]
▶ You Just Voted This the Worst Airline In the United States   [Jun-18-17 06:00PM  TheStreet.com]
▶ How JetBlue Airways Stock Responded to Its Performance   [Jun-15-17 10:37AM  Market Realist]
▶ JetBlue Airways Reduced Capacity Growth in May 2017   [Jun-14-17 05:00PM  Market Realist]
▶ Southwest Airlines Capacity Growth Is Slowing   [01:48PM  Market Realist]
▶ Alaska Air Group Reports May 2017 Operational Results   [Jun-08-17 08:00AM  PR Newswire]
▶ Which Stocks Are Showing Rising Relative Strength?   [Jun-07-17 04:32PM  Investor's Business Daily]
▶ After Getting Grounded, Can These 2 Airline Stocks Take Flight Again?   [Jun-06-17 05:18PM  Investor's Business Daily]
▶ Airline Industry News And Stocks To Watch   [01:07PM  Investor's Business Daily]
▶ Tampa International sees passenger traffic jump and announces new flight   [Jun-01-17 01:45PM  American City Business Journals]
▶ Boeing Roundup: Super Hornet contract $4.2B jet deal with Hainan Airlines   [May-30-17 02:10PM  American City Business Journals]
▶ Is Alaska Air Ready to Take Flight?   [May-26-17 07:00AM  TheStreet.com]
▶ Horizon Air pilots pass vote to amend labor contract   [May-23-17 02:58PM  PR Newswire]
▶ United Airlines gets L.A. Coliseum naming rights in record deal   [May-18-17 09:05PM  American City Business Journals]
▶ Alaska Airlines plans nine daily flights from Everett's Paine Field   [02:30PM  American City Business Journals]
▶ An American Airlines pilot drops bombshell about Twin Hill uniforms   [May-16-17 02:05PM  American City Business Journals]
▶ Virgin America, Alaska Airlines offer parental leave to elite flyers   [06:15AM  American City Business Journals]
▶ How Gogo will transform your Wi-Fi experience in the sky   [May-11-17 02:21PM  Yahoo Finance]
▶ This Airline Breaks Out To High, 2 Rivals Near Buys On Strong Traffic   [May-09-17 04:03PM  Investor's Business Daily]
▶ The Latest Threat To Delta, United Comes From This New Budget Carrier   [May-05-17 04:23PM  Investor's Business Daily]
▶ Lawmakers Grill United CEO Munoz: This Is Why Airline Stocks Are Flying   [May-02-17 04:48PM  Investor's Business Daily]
▶ /C O R R E C T I O N -- Alaska Airlines/   [01:39PM  PR Newswire]
▶ Whats Southwest Airlines Leverage Situation?   [09:08AM  Market Realist]
▶ Alaska Airlines and Virgin America to change terminals, spruce up JFK   [11:00AM  American City Business Journals]
▶ Alaska Air profit falls 46.2 pct   [08:25AM  Reuters]
Stock chart of ALK Financial statements of ALK Annual reports of ALK
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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