* Note: Prices are in Million (M) USD.
Description:
Frontier Group Holdings, Inc., a low-fare airline, provides air transportation for passengers. The company is headquartered in Denver, Colorado.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $740 M
Debt : $4,468 M
EBITDA : $-200 M
Net Debt (Debt - Cash): $3,728 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Airlines
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 15.39
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-53 M
Average Revenue: $2,358 M
Revenue Converted To Free Cash Flow (%): -2%
Avg Free Cash Flow Growth Per Year (Last 5 Years): -149.20%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $3,775 M
Revenue 4 Years Ago (2020-12-31): $1,250 M
Last 5 Years Average Revenue Growth: 40%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $226 M
Share Count 5 Years Ago (2020-12-31): $215 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.31
Trailing 12-Month Earnings Per Share (EPS): $0.31
Average Earnings Per Share (EPS): $0.31
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 8%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $5
52-Week Low: $3
Threshold Price (15% Above 52-Week Low): $3
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,002 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 13 points to above Frontier Group Holdings Inc (ULCC) stock.
Value-Trades has assined P/E value 12. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.31.
The fair value of Frontier Group Holdings Inc (ULCC) stock should be (12 x $0.31) = $3.72
