ALK PE Ratio & Valuation,Is ALK Overvalued

ALK Relative Valuation

ALK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ALK is overvalued; if below, it's undervalued.

Historical Valuation

Alaska Air Group Inc (ALK) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.40 is considered Undervalued compared with the five-year average of -0.24. The fair price of Alaska Air Group Inc (ALK) is between 53.17 to 103.38 according to relative valuation methord. Compared to the current price of 49.80 USD , Alaska Air Group Inc is Undervalued By 6.33%.

Relative Value

Fair Zone

53.17-103.38

Current Price：49.80

6.33%

Undervalued

11.79

5.19

EV/EBITDA

Alaska Air Group Inc. (ALK) has a current EV/EBITDA of 5.19. The 5-year average EV/EBITDA is 6.07. The thresholds are as follows: Strongly Undervalued below -2.90, Undervalued between -2.90 and 1.58, Fairly Valued between 10.55 and 1.58, Overvalued between 10.55 and 15.04, and Strongly Overvalued above 15.04. The current Forward EV/EBITDA of 5.19 falls within the Historic Trend Line -Fairly Valued range.

11.35

EV/EBIT

Alaska Air Group Inc. (ALK) has a current EV/EBIT of 11.35. The 5-year average EV/EBIT is 9.18. The thresholds are as follows: Strongly Undervalued below -14.42, Undervalued between -14.42 and -2.62, Fairly Valued between 20.99 and -2.62, Overvalued between 20.99 and 32.79, and Strongly Overvalued above 32.79. The current Forward EV/EBIT of 11.35 falls within the Historic Trend Line -Fairly Valued range.

0.40

Alaska Air Group Inc. (ALK) has a current PS of 0.40. The 5-year average PS is 0.61. The thresholds are as follows: Strongly Undervalued below 0.11, Undervalued between 0.11 and 0.36, Fairly Valued between 0.86 and 0.36, Overvalued between 0.86 and 1.11, and Strongly Overvalued above 1.11. The current Forward PS of 0.40 falls within the Historic Trend Line -Fairly Valued range.

4.42

P/OCF

Alaska Air Group Inc. (ALK) has a current P/OCF of 4.42. The 5-year average P/OCF is 4.80. The thresholds are as follows: Strongly Undervalued below 0.33, Undervalued between 0.33 and 2.57, Fairly Valued between 7.03 and 2.57, Overvalued between 7.03 and 9.27, and Strongly Overvalued above 9.27. The current Forward P/OCF of 4.42 falls within the Historic Trend Line -Fairly Valued range.

-28.94

P/FCF

Alaska Air Group Inc. (ALK) has a current P/FCF of -28.94. The 5-year average P/FCF is 32.39. The thresholds are as follows: Strongly Undervalued below -290.17, Undervalued between -290.17 and -128.89, Fairly Valued between 193.67 and -128.89, Overvalued between 193.67 and 354.95, and Strongly Overvalued above 354.95. The current Forward P/FCF of -28.94 falls within the Historic Trend Line -Fairly Valued range.

Alaska Air Group Inc (ALK) has a current Price-to-Book (P/B) ratio of 1.47. Compared to its 3-year average P/B ratio of 1.42 , the current P/B ratio is approximately 3.73% higher. Relative to its 5-year average P/B ratio of 1.65, the current P/B ratio is about -10.60% higher. Alaska Air Group Inc (ALK) has a Forward Free Cash Flow (FCF) yield of approximately -0.90%. Compared to its 3-year average FCF yield of -4.63%, the current FCF yield is approximately -80.50% lower. Relative to its 5-year average FCF yield of -0.84% , the current FCF yield is about 7.93% lower.

1.47

P/B

Median3y

1.42

Median5y

1.65

-0.90

FCF Yield

Median3y

-4.63

Median5y

-0.84

Competitors Valuation Multiple

The average P/S ratio for ALK's competitors is 0.60, providing a benchmark for relative valuation. Alaska Air Group Inc Corp (ALK) exhibits a P/S ratio of 0.40, which is -33.74% above the industry average. Given its robust revenue growth of 22.59%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ALK decreased by 32.01% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.07B to 3.77B.

The secondary factor is the P/E Change, contributed 20.14%to the performance.

Overall, the performance of ALK in the past 1 year is driven by Revenue Growth. Which is more sustainable.

22.59%

3.07B → 3.77B

Revenue Growth

-74.74%

7.68 → 1.94

Margin Expansion

20.14%

35.00 → 42.04

P/E Change

-32.01%

73.25 → 49.80

Mkt Cap Growth

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Frequently Asked Questions

Is Alaska Air Group Inc (ALK) currently overvalued or undervalued?

What is Alaska Air Group Inc (ALK) fair value?

ALK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Alaska Air Group Inc (ALK) is between 53.17 to 103.38 according to relative valuation methord.

How does ALK's valuation metrics compare to the industry average?

What is the current P/B ratio for Alaska Air Group Inc (ALK) as of Jan 08 2026?

As of Jan 08 2026, Alaska Air Group Inc (ALK) has a P/B ratio of 1.47. This indicates that the market values ALK at 1.47 times its book value.

What is the current FCF Yield for Alaska Air Group Inc (ALK) as of Jan 08 2026?

As of Jan 08 2026, Alaska Air Group Inc (ALK) has a FCF Yield of -0.90%. This means that for every dollar of Alaska Air Group Inc’s market capitalization, the company generates -0.90 cents in free cash flow.

What is the current Forward P/E ratio for Alaska Air Group Inc (ALK) as of Jan 08 2026?

As of Jan 08 2026, Alaska Air Group Inc (ALK) has a Forward P/E ratio of 11.79. This means the market is willing to pay $11.79 for every dollar of Alaska Air Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Alaska Air Group Inc (ALK) as of Jan 08 2026?

As of Jan 08 2026, Alaska Air Group Inc (ALK) has a Forward P/S ratio of 0.40. This means the market is valuing ALK at $0.40 for every dollar of expected revenue over the next 12 months.

ALK Valuation