With a price/earnings ratio of 8.73, Copa Holdings SA P/E ratio is greater than that of about merely 15.1% of stocks in our set with positive earnings.
Of note is the ratio of Copa Holdings SA's sales and general administrative expense to its total operating expenses; only 13.66% of US stocks have a lower such ratio.
Copa Holdings SA's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 25.29%, greater than the shareholder yield of 89.93% of stocks in our set.
Stocks with similar financial metrics, market capitalization, and price volatility to Copa Holdings SA are RFP, KEX, FET, CPHI, and TIPT.
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 89th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1854.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Copa Holdings SA ended up being:
In the past 4.95 years, Copa Holdings SA has a compound free cash flow growth rate of 0.4%; that's higher than 76.43% of free cash flow generating stocks in the Industrials sector.
Copa Holdings SA's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 7.45% 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 RCMT, RLGT, SPLP, AP, and EVI.
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