VLRS PE Ratio & Valuation,Is VLRS Overvalued

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 0.26 is considered Undervalued compared with the five-year average of 247.36. The fair price of Controladora Vuela Compania de Aviacion SAB de CV (VLRS) is between 8.90 to 21.89 according to relative valuation methord. Compared to the current price of 7.81 USD , Controladora Vuela Compania de Aviacion SAB de CV is Undervalued By 12.2%.

Relative Value

Fair Zone

8.90-21.89

Current Price：7.81

12.2%

Undervalued

-83.48

3.33

EV/EBITDA

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current EV/EBITDA of 3.33. The 5-year average EV/EBITDA is 4.43. The thresholds are as follows: Strongly Undervalued below 2.09, Undervalued between 2.09 and 3.26, Fairly Valued between 5.60 and 3.26, Overvalued between 5.60 and 6.77, and Strongly Overvalued above 6.77. The current Forward EV/EBITDA of 3.33 falls within the Historic Trend Line -Fairly Valued range.

14.83

EV/EBIT

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current EV/EBIT of 14.83. The 5-year average EV/EBIT is 18.25. The thresholds are as follows: Strongly Undervalued below -6.05, Undervalued between -6.05 and 6.10, Fairly Valued between 30.41 and 6.10, Overvalued between 30.41 and 42.56, and Strongly Overvalued above 42.56. The current Forward EV/EBIT of 14.83 falls within the Historic Trend Line -Fairly Valued range.

0.26

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current PS of 0.26. The 5-year average PS is 0.46. The thresholds are as follows: Strongly Undervalued below -0.08, Undervalued between -0.08 and 0.19, Fairly Valued between 0.73 and 0.19, Overvalued between 0.73 and 0.99, and Strongly Overvalued above 0.99. The current Forward PS of 0.26 falls within the Historic Trend Line -Fairly Valued range.

1.19

P/OCF

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current P/OCF of 1.19. The 5-year average P/OCF is 1.87. The thresholds are as follows: Strongly Undervalued below -0.68, Undervalued between -0.68 and 0.59, Fairly Valued between 3.14 and 0.59, Overvalued between 3.14 and 4.41, and Strongly Overvalued above 4.41. The current Forward P/OCF of 1.19 falls within the Historic Trend Line -Fairly Valued range.

1.74

P/FCF

Controladora Vuela Compania de Aviacion SAB de CV. (VLRS) has a current P/FCF of 1.74. The 5-year average P/FCF is 9.86. The thresholds are as follows: Strongly Undervalued below -92.10, Undervalued between -92.10 and -41.12, Fairly Valued between 60.83 and -41.12, Overvalued between 60.83 and 111.81, and Strongly Overvalued above 111.81. The current Forward P/FCF of 1.74 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 34.17. Compared to its 3-year average P/B ratio of 10.25 , the current P/B ratio is approximately 233.40% higher. Relative to its 5-year average P/B ratio of 10.65, the current P/B ratio is about 220.89% higher. Controladora Vuela Compania de Aviacion SAB de CV (VLRS) has a Forward Free Cash Flow (FCF) yield of approximately 49.18%. Compared to its 3-year average FCF yield of 47.96%, the current FCF yield is approximately 2.55% lower. Relative to its 5-year average FCF yield of 38.12% , the current FCF yield is about 29.00% lower.

34.17

P/B

Median3y

10.25

Median5y

10.65

49.18

FCF Yield

Median3y

47.96

Median5y

38.12

Competitors Valuation Multiple

The average P/S ratio for VLRS's competitors is 0.64, providing a benchmark for relative valuation. Controladora Vuela Compania de Aviacion SAB de CV Corp (VLRS) exhibits a P/S ratio of 0.26, which is -59.26% above the industry average. Given its robust revenue growth of -3.51%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of VLRS increased by 4.97% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -74.34 to -142.43.

The secondary factor is the Revenue Growth, contributed -3.51%to the performance.

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

-3.51%

812.81M → 784.28M

Revenue Growth

-83.11%

4.56 → 0.77

Margin Expansion

91.59%

-74.34 → -142.43

P/E Change

4.97%

7.44 → 7.81

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is Controladora Vuela Compania de Aviacion SAB de CV (VLRS) currently overvalued or undervalued?

What is Controladora Vuela Compania de Aviacion SAB de CV (VLRS) fair value?

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. The fair price of Controladora Vuela Compania de Aviacion SAB de CV (VLRS) is between 8.90 to 21.89 according to relative valuation methord.

How does VLRS's valuation metrics compare to the industry average?

What is the current P/B ratio for Controladora Vuela Compania de Aviacion SAB de CV (VLRS) as of Dec 15 2025?

As of Dec 15 2025, Controladora Vuela Compania de Aviacion SAB de CV (VLRS) has a P/B ratio of 34.17. This indicates that the market values VLRS at 34.17 times its book value.

What is the current FCF Yield for Controladora Vuela Compania de Aviacion SAB de CV (VLRS) as of Dec 15 2025?

As of Dec 15 2025, Controladora Vuela Compania de Aviacion SAB de CV (VLRS) has a FCF Yield of 49.18%. This means that for every dollar of Controladora Vuela Compania de Aviacion SAB de CV’s market capitalization, the company generates 49.18 cents in free cash flow.

What is the current Forward P/E ratio for Controladora Vuela Compania de Aviacion SAB de CV (VLRS) as of Dec 15 2025?

As of Dec 15 2025, Controladora Vuela Compania de Aviacion SAB de CV (VLRS) has a Forward P/E ratio of -83.48. This means the market is willing to pay $-83.48 for every dollar of Controladora Vuela Compania de Aviacion SAB de CV’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Controladora Vuela Compania de Aviacion SAB de CV (VLRS) as of Dec 15 2025?

As of Dec 15 2025, Controladora Vuela Compania de Aviacion SAB de CV (VLRS) has a Forward P/S ratio of 0.26. This means the market is valuing VLRS at $0.26 for every dollar of expected revenue over the next 12 months.

VLRS Valuation