Latest Ratios: P/E Ratio 56.4x · EV/EBITDA 10.7x · ROE 2.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.5B | $5.9B | $8.3B | $5.0B | $5.5B | $6.6B | $6.4B | $8.4B | $7.5B | $9.1B | $11.0B |
| Enterprise Value | $11.7B | $12.2B | $13.5B | $8.6B | $8.9B | $10.2B | $10.1B | $11.4B | $9.5B | $11.2B | $13.7B |
| P/E Ratio → | 56.43 | 57.82 | 21.02 | 21.35 | 95.42 | 13.82 | — | 10.95 | 17.29 | 9.49 | 13.84 |
| P/S Ratio | 0.38 | 0.41 | 0.71 | 0.48 | 0.57 | 1.07 | 1.80 | 0.96 | 0.91 | 1.15 | 1.86 |
| P/B Ratio | 1.40 | 1.43 | 1.90 | 1.22 | 1.44 | 1.74 | 2.15 | 1.94 | 2.01 | 2.63 | 3.77 |
| P/FCF | — | — | 45.42 | — | — | 8.95 | — | 8.21 | 32.10 | 16.14 | 15.59 |
| P/OCF | 4.38 | 4.73 | 5.68 | 4.79 | 3.87 | 6.41 | — | 4.89 | 6.31 | 5.73 | 7.96 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.85 | 1.15 | 0.82 | 0.93 | 1.65 | 2.83 | 1.30 | 1.15 | 1.42 | 2.30 |
| EV / EBITDA | 10.69 | 11.08 | 12.21 | 10.45 | 19.09 | 9.47 | — | 7.68 | 9.17 | 7.07 | 8.19 |
| EV / EBIT | 38.73 | 24.39 | 15.19 | 10.47 | 12.65 | — | — | 10.65 | 12.03 | 8.44 | 9.69 |
| EV / FCF | — | — | 73.79 | — | — | 13.85 | — | 11.12 | 40.60 | 19.81 | 19.30 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.7% | 59.7% | 24.4% | 23.6% | 22.1% | 13.2% | -22.0% | 26.9% | 25.3% | 33.3% | 41.5% |
| Operating Margin | 2.1% | 2.1% | 4.9% | 3.8% | 0.7% | 11.1% | -49.8% | 12.1% | 7.8% | 15.3% | 22.0% |
| Net Profit Margin | 0.7% | 0.7% | 3.4% | 2.3% | 0.6% | 7.7% | -37.1% | 8.8% | 5.3% | 12.2% | 13.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 2.4% | 2.4% | 9.3% | 5.9% | 1.5% | 14.1% | -36.2% | 19.0% | 12.1% | 30.0% | 29.8% |
| ROA | 0.5% | 0.5% | 2.2% | 1.5% | 0.4% | 3.3% | -9.4% | 6.2% | 4.0% | 9.3% | 9.7% |
| ROIC | 2.3% | 2.3% | 5.0% | 4.0% | 0.7% | 7.3% | -19.0% | 12.2% | 8.6% | 16.3% | 22.8% |
| ROCE | 2.2% | 2.2% | 4.6% | 3.5% | 0.6% | 6.6% | -17.3% | 11.3% | 8.0% | 15.6% | 21.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.67 | 1.67 | 1.46 | 0.93 | 0.99 | 1.07 | 1.69 | 0.74 | 0.56 | 0.65 | 1.01 |
| Debt / EBITDA | 6.28 | 6.28 | 5.78 | 4.66 | 8.08 | 3.79 | — | 2.16 | 2.02 | 1.43 | 1.77 |
| Net Debt / Equity | — | 1.52 | 1.19 | 0.86 | 0.90 | 0.95 | 1.23 | 0.69 | 0.53 | 0.60 | 0.90 |
| Net Debt / EBITDA | 5.71 | 5.71 | 4.69 | 4.31 | 7.35 | 3.35 | — | 2.01 | 1.92 | 1.31 | 1.57 |
| Debt / FCF | — | — | 28.37 | — | — | 4.90 | — | 2.91 | 8.50 | 3.67 | 3.71 |
| Interest Coverage | 2.05 | 2.05 | 6.26 | 6.76 | 7.51 | -2.20 | -26.87 | 17.00 | 10.86 | 15.40 | 47.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.50 | 0.50 | 0.61 | 0.61 | 0.68 | 0.98 | 0.93 | 0.64 | 0.61 | 0.80 | 0.81 |
| Quick Ratio | 0.46 | 0.46 | 0.58 | 0.58 | 0.65 | 0.97 | 0.92 | 0.61 | 0.59 | 0.78 | 0.79 |
| Cash Ratio | 0.32 | 0.32 | 0.40 | 0.40 | 0.54 | 0.78 | 0.78 | 0.48 | 0.42 | 0.60 | 0.62 |
| Asset Turnover | — | 0.70 | 0.59 | 0.66 | 0.63 | 0.41 | 0.25 | 0.63 | 0.76 | 0.73 | 0.59 |
| Inventory Turnover | 28.30 | 28.30 | 44.59 | 68.65 | 72.24 | 86.44 | 76.30 | 89.10 | 102.92 | 92.42 | 73.64 |
| Days Sales Outstanding | — | 14.48 | 17.36 | 13.41 | 11.20 | 32.27 | 49.13 | 13.43 | 16.17 | 15.77 | 18.59 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | 0.7% | 2.1% | 2.1% | 1.6% | 1.2% |
| Payout Ratio | — | — | — | — | — | — | — | 22.5% | 36.2% | 15.4% | 17.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.8% | 1.7% | 4.8% | 4.7% | 1.0% | 7.2% | — | 9.1% | 5.8% | 10.5% | 7.2% |
| FCF Yield | — | — | 2.2% | — | — | 11.2% | — | 12.2% | 3.1% | 6.2% | 6.4% |
| Buyback Yield | 10.4% | 9.7% | 3.8% | 2.7% | 0.0% | 0.0% | 0.5% | 0.9% | 0.7% | 0.8% | 1.7% |
| Total Shareholder Yield | 10.4% | 9.7% | 3.8% | 2.7% | 0.0% | 0.0% | 1.2% | 2.9% | 2.8% | 2.4% | 3.0% |
| Shares Outstanding | — | $117M | $128M | $129M | $128M | $127M | $123M | $124M | $124M | $124M | $124M |
Operational margin volatility
According to current market data, ALK trades at a 61.91x TTM P/E ratio, which appears significantly elevated compared to the broader airline sector and its own historical averages, suggesting that investors are pricing in a recovery trajectory that remains highly sensitive to near-term operational cost pressures.
The current valuation multiple implies that the market is looking past recent net losses toward a normalized earnings environment that has yet to materialize. Given the thin operating margins, this premium valuation warrants caution, as any further delay in fleet-driven cost efficiencies could lead to a significant multiple contraction.
As reported in quarterly financial statements, ALK's ROIC has trended into negative territory, reaching -2.1% in 2026Q1, which indicates that the company is currently failing to generate returns above its cost of capital during this intensive phase of fleet modernization and network expansion.
The decay in ROIC reflects the heavy capital burden of integrating new aircraft while navigating a volatile demand environment. Investors should monitor whether the transition to a single-fleet type can eventually drive the efficiency gains necessary to restore positive economic value added.
Based on recent filings, ALK's asset turnover remains low at 0.16x, reflecting the capital-intensive nature of the airline industry where significant investment in property and equipment is required to support relatively modest revenue growth compared to the company's total asset base.
The volatility in the cash conversion cycle suggests that management is struggling to optimize working capital amidst shifting operational demands. The inability to consistently improve asset utilization highlights the structural difficulty of scaling operations without incurring proportional increases in fixed overhead costs.
As indicated by the company's reported figures, the debt-to-equity ratio has climbed to 1.79 in 2026Q1, representing a notable increase from previous periods and signaling that the balance sheet is becoming increasingly strained as the company funds its strategic growth initiatives through debt.
This rising leverage profile reduces the company's margin for error, particularly when interest coverage ratios have dipped into negative territory. The reliance on debt to finance fleet expansion may limit the company's ability to navigate future industry downturns without further diluting shareholder value.
According to the latest balance sheet data, ALK's current ratio has deteriorated to 0.43, a level that suggests limited short-term liquidity and an increased reliance on ongoing cash flow generation to meet immediate operational obligations in a highly volatile and capital-intensive business environment.
The decline in the quick ratio further underscores the lack of liquid assets available to cover current liabilities, which may necessitate more aggressive financing strategies. This liquidity position appears vulnerable, especially if the company faces unexpected disruptions in its primary West Coast revenue corridors.
The P/E ratio is frequently misapplied to ALK, as it obscures the massive impact of non-cash depreciation and amortization charges associated with fleet renewal, which often distort net income and make the company appear significantly more expensive than its underlying cash-generating capacity would suggest.
Investors should instead focus on EV/EBITDA or free cash flow yield to better understand the company's operational performance, as these metrics normalize for the capital structure and heavy depreciation inherent in the airline business model. Relying on P/E in this context likely leads to an inaccurate assessment of the company's true valuation.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ALK stock.
Alaska Air Group, Inc.'s current P/E ratio is 56.4x. The historical average is 19.8x. This places it at the 91th percentile of its historical range.
Alaska Air Group, Inc.'s current EV/EBITDA is 10.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.5x.
Alaska Air Group, Inc.'s return on equity (ROE) is 2.4%. The historical average is 10.1%.
Based on historical data, Alaska Air Group, Inc. is trading at a P/E of 56.4x. This is at the 91th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Alaska Air Group, Inc. has 59.7% gross margin and 2.1% operating margin.
Alaska Air Group, Inc.'s Debt/EBITDA ratio is 6.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.