LTM Valuation

LATAM Airlines Group SA

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50.260

-0.22(-0.436%)1D

Overview
Forecast
Valuation
Earnings

LTM Relative Valuation

LTM'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, LTM is overvalued; if below, it's undervalued.

Historical Valuation

LATAM Airlines Group SA (LTM) is now in the Overvalued zone, suggesting that its current forward PS ratio of 0.99 is considered Overvalued compared with the five-year average of -6.63. The fair price of LATAM Airlines Group SA (LTM) is between 11.52 to 31.92 according to relative valuation methord. Compared to the current price of 50.48 USD , LATAM Airlines Group SA is Overvalued By 58.13%.

Relative Value

Fair Zone

11.52-31.92

Current Price：50.48

58.13%

Overvalued

11.06

Trailing

Forward

5.15

EV/EBITDA

LATAM Airlines Group SA. (LTM) has a current EV/EBITDA of 5.15. The 5-year average EV/EBITDA is 5.48. The thresholds are as follows: Strongly Undervalued below -11.48, Undervalued between -11.48 and -3.00, Fairly Valued between 13.96 and -3.00, Overvalued between 13.96 and 22.44, and Strongly Overvalued above 22.44. The current Forward EV/EBITDA of 5.15 falls within the Historic Trend Line -Fairly Valued range.

9.83

EV/EBIT

LATAM Airlines Group SA. (LTM) has a current EV/EBIT of 9.83. The 5-year average EV/EBIT is -54.08. The thresholds are as follows: Strongly Undervalued below -437.71, Undervalued between -437.71 and -245.90, Fairly Valued between 137.74 and -245.90, Overvalued between 137.74 and 329.56, and Strongly Overvalued above 329.56. The current Forward EV/EBIT of 9.83 falls within the Historic Trend Line -Fairly Valued range.

1.02

LATAM Airlines Group SA. (LTM) has a current PS of 1.02. The 5-year average PS is 0.36. The thresholds are as follows: Strongly Undervalued below -0.14, Undervalued between -0.14 and 0.11, Fairly Valued between 0.61 and 0.11, Overvalued between 0.61 and 0.86, and Strongly Overvalued above 0.86. The current Forward PS of 1.02 falls within the Strongly Overvalued range.

4.58

P/OCF

LATAM Airlines Group SA. (LTM) has a current P/OCF of 4.58. The 5-year average P/OCF is 2.67. The thresholds are as follows: Strongly Undervalued below -1.91, Undervalued between -1.91 and 0.38, Fairly Valued between 4.96 and 0.38, Overvalued between 4.96 and 7.25, and Strongly Overvalued above 7.25. The current Forward P/OCF of 4.58 falls within the Historic Trend Line -Fairly Valued range.

7.70

P/FCF

LATAM Airlines Group SA. (LTM) has a current P/FCF of 7.70. The 5-year average P/FCF is 8.40. The thresholds are as follows: Strongly Undervalued below -48.65, Undervalued between -48.65 and -20.13, Fairly Valued between 36.92 and -20.13, Overvalued between 36.92 and 65.45, and Strongly Overvalued above 65.45. The current Forward P/FCF of 7.70 falls within the Historic Trend Line -Fairly Valued range.

LATAM Airlines Group SA (LTM) has a current Price-to-Book (P/B) ratio of 32821.85. Compared to its 3-year average P/B ratio of 5307.21 , the current P/B ratio is approximately 518.44% higher. Relative to its 5-year average P/B ratio of 3164.52, the current P/B ratio is about 937.18% higher. LATAM Airlines Group SA (LTM) has a Forward Free Cash Flow (FCF) yield of approximately 10.04%. Compared to its 3-year average FCF yield of -35.35%, the current FCF yield is approximately -128.39% lower. Relative to its 5-year average FCF yield of -82.19% , the current FCF yield is about -112.21% lower.

32678.80

P/B

Median3y

5307.21

Median5y

3164.52

9.72

FCF Yield

Median3y

-35.35

Median5y

-82.19

Competitors Valuation Multiple

The average P/S ratio for LTM's competitors is 0.61, providing a benchmark for relative valuation. LATAM Airlines Group SA Corp (LTM) exhibits a P/S ratio of 1.02, which is 67.90% above the industry average. Given its robust revenue growth of 8.70%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

LTM.N

LATAM Airlines Group SA

United Airlines Holdings Inc

Southwest Airlines Co

Controladora Vuela Compania de Aviacion SAB de CV

0.21

-4.53%

7.18B

Performance Decomposition

Market capitalization of LTM increased by 97.10% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.87 to 7.46.

The secondary factor is the P/E Change, contributed 35.22%to the performance.

Overall, the performance of LTM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

8.70%

2.98B → 3.24B

Revenue Growth

53.18%

4.87 → 7.46

Margin Expansion

35.22%

19.16K → 25.91K

P/E Change

97.10%