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Top 5 Companies in the Airlines Industry With the Highest EV/EBITDA Ratio (SKYW, CPA, LUV, ALK, ALGT)

By David Diaz

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.

Skywest ranks highest with a an EV/EBITDA ratio of 34.68. Following is Copa Holdings with a an EV/EBITDA ratio of 12.21. Southwest Airlines ranks third highest with a an EV/EBITDA ratio of 7.66.

Alaska Air Group follows with a an EV/EBITDA ratio of 7.35, and Allegiant Travel rounds out the top five with a an EV/EBITDA ratio of 5.77.

SmarTrend recommended that subscribers consider buying shares of Southwest Airlines on April 12th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $56.03. Since that recommendation, shares of Southwest Airlines have risen 7.6%. We continue to monitor Southwest Airlines for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio skywest copa holdings Southwest Airlines alaska air group allegiant travel