Spirit Airlines provides low-fare airline services in the United States, Caribbean, and Latin America.The company was founded in 1964 and is based in Miramar, Florida.
SAVE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SAVE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Spirit Airlines Inc ranked in the 52th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for SAVE, they are:
39% of the company's capital comes from equity, which is greater than only 15.29% of stocks in our cash flow based forecasting set.
Spirit Airlines Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 1.39% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Spirit Airlines Inc has a reliance on debt greater than 85.95% of them.
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 SAVE, try RXN, HOLI, NAT, AZZ, and GTMAY.