Copa Holdings, S.A. Copa Holdings, S.A. (CPA) Company Bio
Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to 74 destinations in 30 countries in North, Central and South America and the Caribbean. The company was founded in 1947 and is based in Panama City, Panama.
CPA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Copa Holdings SA with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Copa Holdings SA ranked in the 86th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Copa Holdings SA, consider:
The compound growth rate in the free cash flow of Copa Holdings SA over the past 4.95 years is 0.4%; that's better than 76.72% of cash flow producing equities in the Industrials sector, where it is classified.
Copa Holdings SA's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 14.03% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CPA, try HIL, FLY, AENZ, LXFR, and ULBI.
Copa Holdings (CPA) was unable to restart its operations in early July due to the government restrictions and now it plans to start operating once again only in early September. By having a solid balance sheet we believe that Copa is a more attractive airline in comparison to its Latin...
Bears of Wall Street on Seeking Alpha | August 9, 2020