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Shares of Allegiant Travel Rank the Highest in Terms of EV/EBITDA Ratio in the Airlines Industry (ALGT, CPA, SKYW, LUV, SAVE)

By Nick Russo

Below are the three companies in the Airlines industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Allegiant Travel ranks highest with a an EV/EBITDA ratio of 9.90. Copa Holdin-Cl A is next with a an EV/EBITDA ratio of 7.62. Skywest Inc ranks third highest with a an EV/EBITDA ratio of 7.48.

Southwest Air follows with a an EV/EBITDA ratio of 7.43, and Spirit Airlines rounds out the top five with a an EV/EBITDA ratio of 7.33.

SmarTrend recommended that subscribers consider buying shares of Southwest Air on October 24th, 2019 as our technology indicated a new Uptrend was in progress when shares hit $55.55. Since that recommendation, shares of Southwest Air have risen 4.0%. We continue to monitor Southwest Air for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio allegiant travel copa holdin-cl a skywest inc southwest air spirit airlines