Latam Airlines Group Stock Alpha and Beta Analysis

LTM Stock  USD 44.99  0.31  0.68%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as LATAM Airlines Group. It also helps investors analyze the systematic and unsystematic risks associated with investing in LATAM Airlines over a specified time horizon. Remember, high LATAM Airlines' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to LATAM Airlines' market risk premium analysis include:
Beta
1.25
Alpha
(0.07)
Risk
1.88
Sharpe Ratio
0.0468
Expected Return
0.0877
Please note that although LATAM Airlines alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, LATAM Airlines did 0.07  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of LATAM Airlines Group stock's relative risk over its benchmark. LATAM Airlines Group has a beta of 1.25  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, LATAM Airlines will likely underperform. At this time, LATAM Airlines' Price Book Value Ratio is very stable compared to the past year. As of the 2nd of November 2025, Price Fair Value is likely to grow to 22.11, while Book Value Per Share is likely to drop 0.

Enterprise Value

12.83 Billion

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Check out LATAM Airlines Backtesting, LATAM Airlines Valuation, LATAM Airlines Correlation, LATAM Airlines Hype Analysis, LATAM Airlines Volatility, LATAM Airlines History and analyze LATAM Airlines Performance.

LATAM Airlines Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. LATAM Airlines market risk premium is the additional return an investor will receive from holding LATAM Airlines long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in LATAM Airlines. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate LATAM Airlines' performance over market.
α-0.07   β1.25

LATAM Airlines expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of LATAM Airlines' Buy-and-hold return. Our buy-and-hold chart shows how LATAM Airlines performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

LATAM Airlines Market Price Analysis

Market price analysis indicators help investors to evaluate how LATAM Airlines stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading LATAM Airlines shares will generate the highest return on investment. By understating and applying LATAM Airlines stock market price indicators, traders can identify LATAM Airlines position entry and exit signals to maximize returns.

LATAM Airlines Return and Market Media

The median price of LATAM Airlines for the period between Mon, Aug 4, 2025 and Sun, Nov 2, 2025 is 44.75 with a coefficient of variation of 5.65. The daily time series for the period is distributed with a sample standard deviation of 2.58, arithmetic mean of 45.64, and mean deviation of 2.18. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
1
Why LATAM is a Top Value Stock for the Long-Term
08/08/2025
2
Are Transportation Stocks Lagging Central Japan Railway Co. This Year
08/28/2025
3
Disposition of 106000 shares by Akradi Bahram of LATAM Airlines at 11.0726 subject to Rule 16b-3
09/03/2025
4
SKYW Stock Surges 22.6 percent in Q2 Can the Momentum Last in 2025
09/25/2025
5
What downside risks could hit LATAM Airlines Group S.A. stock - July 2025 Trends AI Powered Buy and Sell Recommendations - newser.com
09/30/2025
6
What technical patterns form on LATAM Airlines Group S.A. stock charts - Trade Volume Report Weekly Return Optimization Alerts - newser.com
10/06/2025
7
LATAM Airlines Group Downgraded to Buy Rating by Wall Street Zen - MarketBeat
10/10/2025
8
Copa Holdings September 2025 Traffic Improves Year Over Year
10/14/2025
9
Disposition of 3283 shares by Kozikowski Tamara A of LATAM Airlines subject to Rule 16b-3
10/17/2025
10
Are Investors Undervaluing LATAM Airlines Group Right Now
10/24/2025
11
Why LATAM is a Top Growth Stock for the Long-Term
10/27/2025
12
LATAM Airlines Group Projected to Post Quarterly Earnings on Wednesday
10/29/2025

About LATAM Airlines Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including LATAM or other stocks. Alpha measures the amount that position in LATAM Airlines Group has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2024 2025 (projected)
Dividend Yield0.02420.0193
Price To Sales Ratio0.650.62

LATAM Airlines Investors Sentiment

The influence of LATAM Airlines' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in LATAM. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to LATAM Airlines' public news can be used to forecast risks associated with an investment in LATAM. The trend in average sentiment can be used to explain how an investor holding LATAM can time the market purely based on public headlines and social activities around LATAM Airlines Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
LATAM Airlines' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for LATAM Airlines' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average LATAM Airlines' news discussions. The higher the estimated score, the more favorable is the investor's outlook on LATAM Airlines.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards LATAM Airlines in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, LATAM Airlines' short interest history, or implied volatility extrapolated from LATAM Airlines options trading.

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Align your risk with return expectations

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When determining whether LATAM Airlines Group is a strong investment it is important to analyze LATAM Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact LATAM Airlines' future performance. For an informed investment choice regarding LATAM Stock, refer to the following important reports:
LATAM Airlines technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of LATAM Airlines technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of LATAM Airlines trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...