Frontier Group Intrinsic Value Calculation – Frontier Group Reports Q4 Revenue of $906M, Missing Estimates by $25 for 2023.

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Frontier Group Intrinsic Value Calculation – Frontier Group ($NASDAQ:ULCC) is a leading technology and media company specializing in providing services such as internet, television, and phone services to customers. They are based in the United States and have a presence in the Caribbean, Mexico, and South America. In their most recent fourth quarter report, their earnings per share came in line with expectations, but their revenue fell short of estimates by $25M.

The company is optimistic about the future, as they plan to continue investing in their core services, as well their digital products. With the economy slowly beginning to recover, Frontier Group is well-positioned to capitalize on increased demand for their products and services in the coming quarters.

Price History

This news was met with mostly negative sentiment from the markets and investors, causing the FRONTIER GROUP stock to open at $13.5 on Wednesday, and close at $13.6, down 0.2% from its last closing price of 13.6. These consecutive misses have raised questions of the company’s ability to survive this uncertain economic climate, as well as its future prospects. Investors remain skeptical as to when the company will be able to turn things around and start meeting estimates once again. As such, the FRONTIER GROUP’s stock has been steadily declining since the beginning of the year.

The company hopes to turn things around soon, however, with their new CEO, who has been working diligently on restructuring the organization and putting together measures to ensure future success. With these initiatives, they hope to regain investor confidence and return to profitability in the coming quarters. For now, though, the FRONTIER GROUP remains on shaky ground and investors are cautiously awaiting the outcome of their efforts. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Frontier Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Frontier Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Frontier Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Frontier Group are shown below. More…

Analysis – Frontier Group Intrinsic Value Calculation

GoodWhale has conducted an analysis of FRONTIER GROUP’s wellbeing and has determined that the fair value of its stock is around $20.0. This value has been calculated using GoodWhale’s proprietary Valuation Line and reflects the company’s performance and potential. The current market price of FRONTIER GROUP stock is $13.6, which means it is currently undervalued by 32.1%. This indicates that now may be a good time to invest in the company, as the current pricing could present investors with a great opportunity to acquire stock at a discounted price. Of course, any potential investor should undertake their own research into the company before investing, to ensure that the investment is suitable for their own risk profile and financial objectives. Nevertheless, GoodWhale’s analysis of FRONTIER GROUP’s stock is positive, and indicates that the company’s potential lies in its current pricing. With this in mind, those investors who are willing to take on the risk involved in investing in FRONTIER GROUP could be well rewarded if the company continues to grow and develop as expected. More…

Peers

Frontier Group Holdings Inc is an airline holding company that owns and operates Frontier Airlines. The company was founded in 1994 and is headquartered in Denver, Colorado. Frontier Group Holdings Inc’s competitors include Spirit Airlines Inc, JetBlue Airways Corp, and Southwest Airlines Co.

– Spirit Airlines Inc ($NYSE:SAVE)

In 2022, Spirit Airlines had a market cap of 2.38 billion and a return on equity of -10.47%. The company is an American ultra-low-cost carrier, headquartered in Miramar, Florida. Spirit operates scheduled flights throughout the United States and in the Caribbean, Mexico, Latin America, and South America.

– JetBlue Airways Corp ($NASDAQ:JBLU)

As of 2022, JetBlue Airways Corp has a market cap of 2.42B and a Return on Equity of -8.81%. JetBlue Airways Corp is an airline company that operates in the United States. The company was founded in 1999 and is headquartered in New York, New York. JetBlue Airways Corp offers scheduled air service in the United States and the Caribbean. The company also provides cargo transportation services.

– Southwest Airlines Co ($NYSE:LUV)

Southwest Airlines Co is a publicly traded company with a market capitalization of $20.39 billion as of 2022. The company has a return on equity of 10.01%. Southwest Airlines Co is a low-cost carrier that operates in the United States. The company was founded in 1967 and is headquartered in Dallas, Texas.

Summary

Investors in Frontier Group were disappointed despite the company reporting revenue of $906 million for the fourth quarter of 2023, missing estimates by $25 million. The news sentiment surrounding the company is mostly negative at this time. Despite this, investors may find an opportunity to capitalize on Frontier Group’s share prices, as the company continues to invest in various ventures which may yield positive returns.

Frontier Group has recently made investments in customer experience and cloud-based services, as well as a focus on new technologies and services. With the right analysis and strategy, investors may be able to take advantage of the current market conditions to achieve a positive return on their investments in the company.