Latam Airlines Group Stock Market Value
| LTM Stock | USD 26.22 0.10 0.38% |
| Symbol | LATAM |
LATAM Airlines Group Price To Book Ratio
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LATAM Airlines. If investors know LATAM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LATAM Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of LATAM Airlines Group is measured differently than its book value, which is the value of LATAM that is recorded on the company's balance sheet. Investors also form their own opinion of LATAM Airlines' value that differs from its market value or its book value, called intrinsic value, which is LATAM Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LATAM Airlines' market value can be influenced by many factors that don't directly affect LATAM Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LATAM Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if LATAM Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LATAM Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
LATAM Airlines 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to LATAM Airlines' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of LATAM Airlines.
| 08/23/2024 |
| 09/22/2024 |
If you would invest 0.00 in LATAM Airlines on August 23, 2024 and sell it all today you would earn a total of 0.00 from holding LATAM Airlines Group or generate 0.0% return on investment in LATAM Airlines over 30 days. LATAM Airlines is related to or competes with BRF SA, and Embraer SA. LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in P... More
LATAM Airlines Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure LATAM Airlines' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess LATAM Airlines Group upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.67 | |||
| Information Ratio | 0.021 | |||
| Maximum Drawdown | 6.15 | |||
| Value At Risk | (2.54) | |||
| Potential Upside | 3.07 |
LATAM Airlines Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for LATAM Airlines' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as LATAM Airlines' standard deviation. In reality, there are many statistical measures that can use LATAM Airlines historical prices to predict the future LATAM Airlines' volatility.| Risk Adjusted Performance | 0.0826 | |||
| Jensen Alpha | 0.0637 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0209 | |||
| Treynor Ratio | 0.1993 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of LATAM Airlines' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
LATAM Airlines Group Backtested Returns
As of now, LATAM Stock is very steady. LATAM Airlines Group has Sharpe Ratio of 0.0946, which conveys that the company had a 0.0946% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for LATAM Airlines, which you can use to evaluate the volatility of the entity. Please verify LATAM Airlines' downside deviation of 1.67, and Mean Deviation of 1.26 to check out if the risk estimate we provide is consistent with the expected return of 0.16%. LATAM Airlines has a performance score of 7 on a scale of 0 to 100. The firm secures a Beta (Market Risk) of 0.75, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, LATAM Airlines' returns are expected to increase less than the market. However, during the bear market, the loss of holding LATAM Airlines is expected to be smaller as well. LATAM Airlines Group currently secures a risk of 1.64%. Please verify LATAM Airlines Group potential upside, as well as the relationship between the kurtosis and day typical price , to decide if LATAM Airlines Group will be following its current price movements.
Auto-correlation | -0.76 |
Almost perfect reverse predictability
LATAM Airlines Group has almost perfect reverse predictability. Overlapping area represents the amount of predictability between LATAM Airlines time series from 23rd of August 2024 to 7th of September 2024 and 7th of September 2024 to 22nd of September 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of LATAM Airlines Group price movement. The serial correlation of -0.76 indicates that around 76.0% of current LATAM Airlines price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.76 | |
| Spearman Rank Test | -0.94 | |
| Residual Average | 0.0 | |
| Price Variance | 0.94 |
LATAM Airlines Group lagged returns against current returns
Autocorrelation, which is LATAM Airlines stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting LATAM Airlines' stock expected returns. We can calculate the autocorrelation of LATAM Airlines returns to help us make a trade decision. For example, suppose you find that LATAM Airlines has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
LATAM Airlines regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If LATAM Airlines stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if LATAM Airlines stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in LATAM Airlines stock over time.
Current vs Lagged Prices |
| Timeline |
LATAM Airlines Lagged Returns
When evaluating LATAM Airlines' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of LATAM Airlines stock have on its future price. LATAM Airlines autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, LATAM Airlines autocorrelation shows the relationship between LATAM Airlines stock current value and its past values and can show if there is a momentum factor associated with investing in LATAM Airlines Group.
Regressed Prices |
| Timeline |
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Try AI Portfolio ArchitectAdditional Information and Resources on Investing in LATAM Stock
When determining whether LATAM Airlines Group is a strong investment it is important to analyze LATAM Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact LATAM Airlines' future performance. For an informed investment choice regarding LATAM Stock, refer to the following important reports:Check out LATAM Airlines Correlation, LATAM Airlines Volatility and LATAM Airlines Alpha and Beta module to complement your research on LATAM Airlines. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
LATAM Airlines technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.