Southwest Airlines Co. (NYSE:LUV) kept active in under and overvalue discussion, LUV holds price to book ratio of 2.96 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 9.71, which is authentic method to judge but not universal for all situation.
Despite having gotten tentative contracts with two key labor groups, pilots and flight attendants, in recent weeks, Southwest Airlines CEO Gary Kelly is still on the outs with a third important group, some 2,500 Southwest Airlines mechanics represented by Dallas-based Aircraft Mechanics Fraternal Association Locals 11, 4, 18 and 32.
Fundament/ News Factor in Focus
Taking look on ratio analysis, LUV has forward price to earnings ratio of 9.46, compare to its price to earnings ratio of 9.71. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 0.70. The co is presenting price to cash flow as 6.74 and while calculating price to free cash flow it concluded at 14.01, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
The firm has price volatility of 1.90% for a week and 2.02% for a month. Its beta stands at 0.81 times. Narrow down four to firm performance, its weekly performance was -2.96% and monthly performance was -0.38%.
Boyd Gaming Corporation (NYSE:BYD) runs in leading trade, it are moving up 0.70% to traded at $18.61. BYD attains analyst recommendation of 2.50 on scale of 1-5 with week’s performance of -2.72%.
To find out the technical position of BYD, it holds price to book ratio of 3.69 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 15.17, and price to earnings ratio calculated as 33.65. The price to earnings growth ration calculated as 0.89. BYD is presenting price to cash flow of 3.37 and free cash flow concluded as 10.51.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 186.20%, and looking further price to next year’s EPS is 52.80%. While take a short look on price to sales ratio, that was 0.97 and price to earning ration of 33.65 attracting passive investors.