Frontier Group Holdings, Inc. logo ULCC - Frontier Group Holdings, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 2
HOLD 8
SELL 3
STRONG
SELL
0
| PRICE TARGET: $6.50 DETAILS
HIGH: $7.00
LOW: $6.00
MEDIAN: $6.50
CONSENSUS: $6.50
DOWNSIDE: 14.25%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 40% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Strong
Trading 48.8% below fair value
Current Price $7.58
Bear Case $11.84 56.2% upside ($11.84 - $7.58) / $7.58 = 56.2% $0.75 × 18x P/E
Fair Value $14.80 95.3% upside ($14.80 - $7.58) / $7.58 = 95.3% $0.75 × 22x P/E
Bull Case $17.76 134.3% upside ($17.76 - $7.58) / $7.58 = 134.3% $0.75 × 27x P/E

Adjust Assumptions

22.5x
0.75$

Key Value Driver

Normalized P/E multiple (22x base case)

Implied Market Multiple 10.1x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $6.50 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $14.80 per share.

Warnings

Wall Street's average price target is $6.50 (from 13 analysts). Our estimate is 160% above the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples