LATAM Airlines Group S.A. ADR
LATAM Airlines Group S.A. ADR is a Chilean airline holding company that provides passenger air transportation and cargo services across South America and international routes. The company’s operations center on scheduled passenger flights, freight transport, and related air travel services supported by a broad network of destinations and fleet operations. Through its air transport segment, LATAM serves leisure, business, and logistics customers in markets spanning Latin America, North America, Europe, and Oceania. The ADR structure gives U.S. investors exposure to the company’s ordinary shares through depositary receipts, while the underlying business remains focused on airline operations and cargo logistics. LATAM Airlines Group S.A. ADR plays a significant role in regional connectivity and trade by linking major cities, supporting tourism, and moving time-sensitive goods across the Americas and beyond.
$46.26
-$0.96 (-2.03%)
EOD Oct 23, 2026
15.18% operating margin is respectable but not wide. ROIC at 24.44%.
Revenue up 11.2% in the fiscal year ended Dec 2025 with margins expanding 4.1pp.
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.
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
Valuation & Multiples
Based on TTM earnings · Diluted shares
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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