Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. The company was founded in 1992 and is based in Purchase, New York.
AAWW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Atlas Air Worldwide Holdings Inc. To summarize, we found that Atlas Air Worldwide Holdings Inc ranked in the 74th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 264.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Atlas Air Worldwide Holdings Inc ended up being:
34% of the company's capital comes from equity, which is greater than only 12.22% of stocks in our cash flow based forecasting set.
Atlas Air Worldwide Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.3. This coverage rate is greater than that of merely 19.54% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 15. This value is greater than 93.49% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GFN, TRU, AIT, HUBG, and TNET can be thought of as valuation peers to AAWW, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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