LATAM Airlines Valuation
| LTM Stock | USD 67.74 0.72 1.05% |
At this time, the entity appears to be undervalued. LATAM Airlines Group secures a last-minute Real Value of $72.69 per share. The latest price of the entity is $67.74. Our model forecasts the value of LATAM Airlines Group from inspecting the entity fundamentals such as profit margin of 0.09 %, and Current Valuation of 24.41 B as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting LATAM Airlines' valuation include:
Price Book 17.1334 | Enterprise Value | Enterprise Value Ebitda 11.7302 | Price Sales 1.5256 | Forward PE 10.1729 |
Undervalued
Today
Please note that LATAM Airlines' price fluctuation is very steady at this time. Calculation of the real value of LATAM Airlines Group is based on 3 months time horizon. Increasing LATAM Airlines' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the LATAM stock is determined by what a typical buyer is willing to pay for full or partial control of LATAM Airlines Group. Since LATAM Airlines is currently traded on the exchange, buyers and sellers on that exchange determine the market value of LATAM Stock. However, LATAM Airlines' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 67.74 | Real 72.69 | Target 63.82 | Hype 67.74 | Naive 69.72 |
The intrinsic value of LATAM Airlines' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence LATAM Airlines' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of LATAM Airlines Group helps investors to forecast how LATAM stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of LATAM Airlines more accurately as focusing exclusively on LATAM Airlines' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use LATAM Airlines' intrinsic value based on its ongoing forecasts of LATAM Airlines' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against LATAM Airlines' closest peers.
LATAM Airlines Cash |
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LATAM Revenue by Product
LATAM Airlines Total Value Analysis
LATAM Airlines Group is now anticipated to have company total value of 24.41 B with market capitalization of 20.94 B, debt of 7.15 B, and cash on hands of 1.49 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the LATAM Airlines fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
24.41 B | 20.94 B | 7.15 B | 1.49 B |
LATAM Airlines Investor Information
The company last dividend was issued on the 17th of December 2025. LATAM Airlines Group had 1:2000 split on the 24th of July 2024. Based on the key indicators related to LATAM Airlines' liquidity, profitability, solvency, and operating efficiency, LATAM Airlines Group is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.LATAM Airlines Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. LATAM Airlines has an asset utilization ratio of 84.13 percent. This suggests that the Company is making $0.84 for each dollar of assets. An increasing asset utilization means that LATAM Airlines Group is more efficient with each dollar of assets it utilizes for everyday operations.LATAM Airlines Profitability Analysis
Based on LATAM Airlines' profitability indicators, LATAM Airlines Group is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in March. Profitability indicators assess LATAM Airlines' ability to earn profits and add value for shareholders.Net Income | First Reported 1998-03-31 | Previous Quarter 242.4 M | Current Value 374.4 M | Quarterly Volatility 462.1 M |
For LATAM Airlines profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LATAM Airlines Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LATAM Airlines utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LATAM Airlines's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LATAM Airlines over time as well as its relative position and ranking within its peers.
LATAM Airlines Earnings per Share Projection vs Actual
The next projected EPS of LATAM Airlines is estimated to be 1.26 with future projections ranging from a low of 1.065 to a high of 1.2675. LATAM Airlines' most recent 12-month trailing earnings per share (EPS TTM) is at 4.18. Please be aware that the consensus of earnings estimates for LATAM Airlines Group is based on EPS before non-recurring items and includes expenses related to employee stock options.LATAM Airlines Earnings Estimation Breakdown
The calculation of LATAM Airlines' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of LATAM Airlines is estimated to be 1.26 with the future projection ranging from a low of 1.065 to a high of 1.2675. Please be aware that this consensus of annual earnings estimates for LATAM Airlines Group is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
1.06 Lowest | Expected EPS | 1.27 Highest |
LATAM Airlines Earnings Projection Consensus
Suppose the current estimates of LATAM Airlines' value are higher than the current market price of the LATAM Airlines stock. In this case, investors may conclude that LATAM Airlines is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and LATAM Airlines' stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2025 | Current EPS (TTM) | |
| 9 | 91.59% | 1.4084 | 1.26 | 4.18 |
LATAM Airlines Ownership Allocation
LATAM Airlines Group maintains a total of 287.11 Million outstanding shares. Roughly 87.68 % of LATAM Airlines outstanding shares are held by general public with 12.32 % by institutional investors. Please note that no matter how many assets the company has, if the real value of the entity is less than the current market value, you may not be able to make money on it.LATAM Airlines Profitability Analysis
The company reported the last year's revenue of 12.83 B. Total Income to common stockholders was 976.97 M with profit before taxes, overhead, and interest of 3.92 B.LATAM Airlines Past Distributions to stockholders
About LATAM Airlines Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of LATAM Airlines Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of LATAM Airlines Group based exclusively on its fundamental and basic technical indicators. By analyzing LATAM Airlines's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of LATAM Airlines's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of LATAM Airlines. We calculate exposure to LATAM Airlines's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of LATAM Airlines's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.8 B | 3.9 B | |
| Pretax Profit Margin | 0.09 | 0.09 | |
| Operating Profit Margin | 0.14 | 0.15 | |
| Net Profit Margin | 0.09 | 0.09 | |
| Gross Profit Margin | 0.25 | 0.29 |
A single share of LATAM Airlines represents a small ownership stake in the entity. As a stockholder of LATAM, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
LATAM Airlines Dividends Analysis For Valuation
Please note that LATAM Airlines has scaled down on payment of dividends at this time. As of the 4th of February 2026, Retained Earnings is likely to grow to about 1.1 B, while Earnings Yield is likely to drop 0.11.
There are various types of dividends LATAM Airlines can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of LATAM shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from LATAM Airlines Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When LATAM pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of LATAM Airlines by the value of the dividends paid out.
LATAM Airlines Growth Indicators
Investing in growth stocks can be very risky. If the company such as LATAM Airlines does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 302.2 M | |
| Quarterly Earnings Growth Y O Y | 0.31 | |
| Forward Price Earnings | 10.1729 |
LATAM Airlines Current Valuation Indicators
LATAM Airlines' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final LATAM Airlines' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as LATAM Airlines, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use LATAM Airlines' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes LATAM Airlines' worth.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: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LATAM Airlines Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in poverty. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Will Passenger Airlines sector continue expanding? Could LATAM diversify its offerings? Factors like these will boost the valuation of LATAM Airlines. Expected growth trajectory for LATAM significantly influences the price investors are willing to assign. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every LATAM Airlines data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.31 | Dividend Share 0.001 | Earnings Share 4.18 | Revenue Per Share | Quarterly Revenue Growth 0.171 |
The market value of LATAM Airlines Group is measured differently than its book value, which is the value of LATAM that is recorded on the company's balance sheet. Investors also form their own opinion of LATAM Airlines' value that differs from its market value or its book value, called intrinsic value, which is LATAM Airlines' true underlying value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Because LATAM Airlines' market value can be influenced by many factors that don't directly affect LATAM Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Understanding that LATAM Airlines' value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether LATAM Airlines represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Meanwhile, LATAM Airlines' quoted price indicates the marketplace figure where supply meets demand through bilateral consent.