Intrinsiqq
LATAM Airlines Group S.A. ADR logoLATAM Airlines Group S.A. ADRLTM
$46.26-2.03%
LATAM Airlines Group S.A. ADR logo

LATAM Airlines Group S.A. ADR

LTM

$46.26

-$0.96 (-2.03%)

⊜ Compare
ProfitabilitySolid marginsGrowthSteady growthCash FlowN/AValuationAttractively priced
What stands out

15.18% operating margin is respectable but not wide. ROIC at 24.44%.

What's changing

Revenue up 11.2% in the fiscal year ended Dec 2025 with margins expanding 4.1pp.

What deserves caution

Even for strong businesses, today's 8.53x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.

Valuation context

8.53x earnings, 7.15x FCF. A below-average multiple, which usually means the market expects earnings to fall. Check whether the filings support that.

Price History

+2.8%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$13.28B
EPS$5.43
P/E8.53
P/FCF7.15
EV/EBITDA7.91
FCF Yield14.0%
Div. Yield0.29%
Net Debt/FCF—
52-Week Range
$43.44$68.46

Profitability & Returns

Revenue (TTM)

$15.88B

▲ +11.2% YoY

Net Income (TTM)

$1.56B

▲ +49.7% YoY

Op. Margin

15.18%

▲ +4.1pp YoY

ROIC

24.44%

▲ +4.2pp YoY

Cash Flow & Balance Sheet

FCF (FY)

$1.86B

▲ +10.1% YoY

Op. Cash Flow (FY)

$1.86B

▼ -35.5% YoY

Net Debt

$5.88B

Cash & Equiv.

$2.20B

3Y CAGR: +15.1%

Continue Research

Is LATAM Airlines Group S.A. ADR (LTM) overvalued?

At a P/E of 8.5 and a price-to-free-cash-flow of 7.2, LATAM Airlines Group S.A. ADR (LTM) trades below a two-stage DCF intrinsic value of about $226.44 per share, so at $46.26 the stock looks undervalued (389.5% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, LATAM Airlines Group S.A. ADR scores 80/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.3%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is LATAM Airlines Group S.A. ADR's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $226.44 per share for LTM, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $169.83. At today's $46.26, that puts the stock about 389.5% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is LATAM Airlines Group S.A. ADR a high-quality business?+

LATAM Airlines Group S.A. ADR scores 80 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 15.2% operating margin and a 24.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does LATAM Airlines Group S.A. ADR (LTM) pay a dividend, and how much?+

Yes, LATAM Airlines Group S.A. ADR pays a regular dividend of about $0.13 per share per year (typically in quarterly installments), a yield of roughly 0.3% at the current price. That is a payout ratio of about 2.4% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For LTM's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is LATAM Airlines Group S.A. ADR a good stock to buy right now?+

That depends on valuation and quality together, not either alone. LTM currently trades below its estimated intrinsic value and scores 80/100 on quality (high-quality). It also yields about 0.3%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

Related stocks: Airlines

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Not financial advice. Analytical data for research only.

Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.