Allegiant Travel Intrinsic Value Calculation – ALLEGIANT TRAVEL Reports 12.8% Increase in System Passengers in October
November 25, 2023
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Allegiant Travel ($NASDAQ:ALGT), a leisure travel company based in the United States, reported a 12.8% increase in system passengers in October when compared to the same month last year. The company, which is commonly known as Allegiant, provides low-cost airline services to leisure travelers in the US, as well as vacation packages that include accommodation, car rental and other activities. The company also intends to add several new aircraft to its fleet in order to meet increasing demand. Overall, Allegiant Travel’s October results are a promising sign for the company’s recovery from the pandemic and its ability to capitalize on the rising demand for leisure travel.
Analysis – Allegiant Travel Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of ALLEGIANT TRAVEL‘s wellbeing. Our proprietary Valuation Line has come up with a fair value of $220.1 for ALLEGIANT TRAVEL’s share. However, the current stock price is only at $67.8, which means the share is undervalued by 69.2%. This may be a great opportunity for investors to buy into ALLEGIANT TRAVEL as the current stock price is relatively low. We recommend investors to take advantage of this opportunity and invest in ALLEGIANT TRAVEL. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Allegiant Travel. More…
| Total Revenues | Net Income | Net Margin |
| 2.51k | 167.6 | 7.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Allegiant Travel. More…
| Operations | Investing | Financing |
| 421.88 | -491.42 | 33.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Allegiant Travel. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.83k | 2.29 | 0.07 |
Key Ratios Snapshot
Some of the financial key ratios for Allegiant Travel are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.7% | 40.0% | 13.6% |
| FCF Margin | ROE | ROA |
| -3.6% | 31.1% | 4.4% |
Peers
The competition among Allegiant Travel Co, Korean Air Lines Co Ltd, Cebu Air Inc, and InterGlobe Aviation Ltd is fierce. All four companies are striving to provide the best possible service to their customers. Each company has its own strengths and weaknesses, and it is up to the customer to decide which airline best meets their needs.
– Korean Air Lines Co Ltd ($KOSE:003490)
Korean Air Lines Co Ltd is a major airline company headquartered in Seoul, South Korea. It is the flag carrier of South Korea and operates a fleet of over 150 aircraft. The company has a market cap of 7.89T as of 2022 and a Return on Equity of 20.57%. Korean Air Lines is one of the world’s largest airlines and is a member of the SkyTeam alliance. The company offers a wide array of domestic and international flight routes and provides a high level of customer service.
– Cebu Air Inc ($PSE:CEB)
Cebu Air Inc is a leading low-cost carrier in the Philippines. It has a strong presence in the domestic market and offers services to over 60 destinations across the country. The company has a market cap of 22.34B as of 2022 and a Return on Equity of -580.13%. Cebu Air is committed to providing affordable, convenient, and reliable air travel services to its customers. It has a modern fleet of aircraft and a strong network of domestic and international routes. The company is continuously expanding its operations and has plans to further grow its market share in the coming years.
– InterGlobe Aviation Ltd ($BSE:539448)
InterGlobe Aviation Ltd, the owner of India’s largest airline by market share, IndiGo, has a market cap of 672.27B as of 2022. The company has a strong financial performance, with a return on equity of 16.73%. IndiGo is a low-cost carrier that offers affordable air travel to passengers in India and across the world. The company has a fleet of over 250 aircraft and operates more than 1,200 flights daily. InterGlobe Aviation is a publicly traded company listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Summary
Allegiant Travel had a strong October, with total system passengers up 12.8%. The increase was attributed to higher leisure demand, increased flight frequencies, and a flexible pricing model. Analysts see continued strong growth, as Allegiant is well-positioned to capitalize on the rebound in leisure and value travel. Its industry-leading cost structure and focus on underpenetrated markets are expected to continue driving revenue growth.
The company is also actively investing in new aircrafts and technology to increase efficiency and productivity for long-term success. Investors should consider these factors when making any investing decisions.
