First, you might be wondering why compare the above 6 airlines. The reason is simple. The first 5 airlines are the top 5 U.S. airlines that carries the most passengers since 2015. As for$SIA (C6L.SG)$, it is used to see how the Singapore airline perform when compare to its U.S. counterparts.
Now, let's pop them in and compare!
As shown in the picture above, we are greeted with a beautiful line chart that shows the price trend of the 6 stocks in the past one month. Do note that we can also compare the price trend of the stock for the past 6 months, and up to past 3 years.
For this post, we will be focusing only one value, that is the BVPS metric. The book value per share (BVPS) metric is used to gauge whether if a stock price is undervalued by comparing it to it's market value per share. For beginners, BVPS also represents the amount that the holder of the stock will receive if the company dissolve. A higher BVPS means that the stock is more valuable.
We have come to an end for this discussion and I hope you enjoy it. Please give a likeand vote if you would like to see the EV-to-EBITDA ratio in the "stock compare" feature.
For beginners, the enterprise value to earnings before interest, taxes, depreciation, and amortization ratio (EV-to-EBITDA) compares the value of a company with debt included, to the company’s cash earnings less non-cash expenses. The lower the EV-to-EBITDA ratio, the better the company is. It is often seen that an EV-to-EBITDA value below 10 is consider healthy.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Meng PaPa
:
As long as a company has a strong financial backing, a recovery plan and strategy in place, it is safe to invest. If the company has no strategy or planning, no matter how rich the company is, is as good as bankrupt. Therefore, a good management team is very important.
Mars Mooo
OP
Ben 23
:
Agreed but if they start to merge and become bigger, they can raise price of air ticket easier, in additional to fuel hedge strategies and etc.
TRIUMPHANT RETURNS : must b crazy...airline companies ARE ALL LOUSY investment TRAPS.
Meng PaPa : Yes, they are undervalued. Strongly agree
Mars Mooo OP TRIUMPHANT RETURNS :
Mars Mooo OP Meng PaPa :
Meng PaPa : As long as a company has a strong financial backing, a recovery plan and strategy in place, it is safe to invest. If the company has no strategy or planning, no matter how rich the company is, is as good as bankrupt. Therefore, a good management team is very important.
Mars Mooo OP PeppaMum :
Mars Mooo OP Meng PaPa :
Ben 23 : Even if is undervalued, cost of operation is high and there is little or negative profits over the years for airlines in general.
Mars Mooo OP Ben 23 : Agreed but if they start to merge and become bigger, they can raise price of air ticket easier, in additional to fuel hedge strategies and etc.
JAM526 Mars Mooo OP : Hi
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