United Continental Holdings provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. The company was founded in 1934 and is based in Chicago, Illinois.
UAL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for UAL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that United Airlines Holdings Inc ranked in the 13th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 86.83%. In terms of the factors that were most noteworthy in this DCF analysis for UAL, they are:
Its compound free cash flow growth rate, as measured over the past 5.53 years, is -0.15% -- higher than only 12.69% of stocks in our DCF forecasting set.
28% of the company's capital comes from equity, which is greater than just 12.72% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 5. This value is greater than only 0.27% stocks in the Industrials sector that generate free cash flow.
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 UAL, try PPIH, DEWY, DHX, INSW, and JCI.
At two previous companies, new United Airlines CEO Scott Kirby developed a reputation for bluntness, often favoring honest answers over diplomatic ones. On Thursday, speaking at his first public forum since taking over last week from Oscar Munoz, Kirby showed he wouldn't drop the act just because he now leads a Fortune 100 company. In […]
Moody's Investors Service ("Moody's") confirmed the Ba2 corporate family, Ba2-PD probability of default and Ba3 senior unsecured ratings assigned to United Airlines Holdings, Inc. ("United"), and downgraded subsidiary United Airlines, Inc.'s senior secured rating to Ba1 from Baa3. Moody's also confirmed all of its ratings on the company's Enhanced Equipment Trust Certificates.
After a brief rally earlier in the week on hopes of an improving economy, airline shares are in the red once again on Thursday. Shares of American Airlines Group (NASDAQ: AAL) were down 6.6% as of 2:30 p.m. EDT and shares of United Airlines Holdings (NASDAQ: UAL) were down 4.4%. Delta Air Lines (NYSE: DAL), which earlier in the day was down 5.2%, had recovered some of that loss, but were still down on a day when broader markets are up.