VLRS Valuation

Controladora Vuela Compania de Aviacion SAB de CV

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6.630

+0.21(3.271%)1D

VLRS Relative Valuation

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

Historical Valuation

Controladora Vuela Compania de Aviacion SAB de CV (VLRS) is now in the Undervalued zone, suggesting that its current forward PS ratio of 6.63 is considered Undervalued compared with the five-year average of 247.52. The fair price of Controladora Vuela Compania de Aviacion SAB de CV (VLRS) is between 12.23 to 12.88 according to relative valuation methord. Compared to the current price of 6.63 USD , Controladora Vuela Compania de Aviacion SAB de CV is Undervalued By 45.81%.

Relative Value

Fair Zone

12.23-12.88

Current Price：6.63

45.81%

Undervalued

37.61

Trailing

Forward

3.27

EV/EBITDA

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current EV/EBITDA of 3.27. The 5-year average EV/EBITDA is 4.54. The thresholds are as follows: Strongly Undervalued below 2.10, Undervalued between 2.10 and 3.32, Fairly Valued between 5.76 and 3.32, Overvalued between 5.76 and 6.98, and Strongly Overvalued above 6.98. The current Forward EV/EBITDA of 3.27 falls within the Undervalued range.

13.72

EV/EBIT

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current EV/EBIT of 13.72. The 5-year average EV/EBIT is 18.65. The thresholds are as follows: Strongly Undervalued below -5.92, Undervalued between -5.92 and 6.37, Fairly Valued between 30.94 and 6.37, Overvalued between 30.94 and 43.23, and Strongly Overvalued above 43.23. The current Forward EV/EBIT of 13.72 falls within the Historic Trend Line -Fairly Valued range.

6.63

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current PS of 6.63. The 5-year average PS is 0.48. The thresholds are as follows: Strongly Undervalued below -0.32, Undervalued between -0.32 and 0.08, Fairly Valued between 0.89 and 0.08, Overvalued between 0.89 and 1.29, and Strongly Overvalued above 1.29. The current Forward PS of 6.63 falls within the Strongly Overvalued range.

1.04

P/OCF

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current P/OCF of 1.04. The 5-year average P/OCF is 1.94. The thresholds are as follows: Strongly Undervalued below -0.66, Undervalued between -0.66 and 0.64, Fairly Valued between 3.23 and 0.64, Overvalued between 3.23 and 4.53, and Strongly Overvalued above 4.53. The current Forward P/OCF of 1.04 falls within the Historic Trend Line -Fairly Valued range.

1.53

P/FCF

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current P/FCF of 1.53. The 5-year average P/FCF is 9.99. The thresholds are as follows: Strongly Undervalued below -92.63, Undervalued between -92.63 and -41.32, Fairly Valued between 61.30 and -41.32, Overvalued between 61.30 and 112.61, and Strongly Overvalued above 112.61. The current Forward P/FCF of 1.53 falls within the Historic Trend Line -Fairly Valued range.

Controladora Vuela Compania de Aviacion SAB de CV (VLRS) has a current Price-to-Book (P/B) ratio of 29.08. Compared to its 3-year average P/B ratio of 10.13 , the current P/B ratio is approximately 187.12% higher. Relative to its 5-year average P/B ratio of 10.38, the current P/B ratio is about 180.06% higher. Controladora Vuela Compania de Aviacion SAB de CV (VLRS) has a Forward Free Cash Flow (FCF) yield of approximately 29.13%. Compared to its 3-year average FCF yield of 46.94%, the current FCF yield is approximately -37.94% lower. Relative to its 5-year average FCF yield of 36.74% , the current FCF yield is about -20.72% lower.

29.08

P/B

Median3y

10.13

Median5y

10.38

29.13

FCF Yield

Median3y

46.94

Median5y

36.74

Competitors Valuation Multiple

The average P/S ratio for VLRS's competitors is 52.91, providing a benchmark for relative valuation. Controladora Vuela Compania de Aviacion SAB de CV Corp (VLRS) exhibits a P/S ratio of 6.63, which is -87.47% above the industry average. Given its robust revenue growth of -4.53%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

VLRS.N

Controladora Vuela Compania de Aviacion SAB de CV

Southwest Airlines Co

American Airlines Group Inc

Performance Decomposition

Market capitalization of VLRS decreased by 13.90% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -14.76 to -121.70.

The secondary factor is the Revenue Growth, contributed -4.53%to the performance.

Overall, the performance of VLRS in the past 1 year is driven by P/E Change. Which is more unsustainable.

-4.53%

726.28M → 693.39M

Revenue Growth

-734.03%

1.44 → -9.13

Margin Expansion

724.66%

-14.76 → -121.70

P/E Change

-13.90%