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LATAM Airlines GroupLTM -0.31%72 Debt-to-EBITDA is 10.48 as of Jun. 2026, which is 166% above its 10-year median of 3.94. GuruFocus rates LTM with a GF Score™ of 72/100 and a GF Value™ of $41.52 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 867 Transportation companies, LATAM Airlines Group ranks worse than 65.63% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for LATAM Airlines Group's Debt-to-EBITDA or its related term are showing as below:
LTM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.16 Med: 3.94 Max: 14.66
Current: 3.81
During the past 13 years, the highest Debt-to-EBITDA Ratio of LATAM Airlines Group was 14.66. The lowest was -3.16. And the median was 3.94.
LTM's Debt-to-EBITDA is ranked worse than 65.63% of 867
companies
in the Transportation industry
Industry Median: 2.63
vs LTM: 3.81
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
LATAM Airlines Group Debt-to-EBITDA Related Terms
LATAM Airlines Group Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for LATAM Airlines Group's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Airlines subindustry, LATAM Airlines Group's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LATAM Airlines Group Debt-to-EBITDA vs Transportation Industry
For the Transportation industry and Industrials sector, LATAM Airlines Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where LATAM Airlines Group's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
LATAM Airlines Group (LTM) has a Debt-to-EBITDA of 10.48 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on LATAM Airlines Group. This is 166% above median its historical median of 3.94. According to the industry distribution chart, LATAM Airlines Group ranks #569 out of 867 companies in the Transportation industry, placing it in the top 65.6%.
Is LATAM Airlines Group's Debt-to-EBITDA too high?
LATAM Airlines Group's current Debt-to-EBITDA of 10.48 is 166% above median its 10-year median of 3.94. The Transportation industry median Debt-to-EBITDA is 2.63. LATAM Airlines Group's value of 10.48 is 298.5% above this industry median. Based on the distribution chart, LATAM Airlines Group ranks #569 out of 867 companies in the Transportation industry, which is below the industry midpoint. Overall, LATAM Airlines Group has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LATAM Airlines Group's Debt-to-EBITDA compare to DAL and UAL?
According to the Transportation industry distribution chart, LATAM Airlines Group ranks #569 out of 867 companies for Debt-to-EBITDA. This places LATAM Airlines Group in the lower half of its industry. The industry median Debt-to-EBITDA is 2.63. LATAM Airlines Group's value of 10.48 is 298.5% above this benchmark. While the company's 10-year median is 3.94 vs. the industry median of 2.63, LATAM Airlines Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Transportation company?
The median Debt-to-EBITDA among Transportation companies is 2.63, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LATAM Airlines Group's current Debt-to-EBITDA of 10.48 is 298.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on LATAM Airlines Group. For the Transportation industry, the median Debt-to-EBITDA is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LATAM Airlines Group's current Debt-to-EBITDA is 10.48, which is 166% above median its own 10-year median of 3.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LATAM Airlines Group stock overvalued right now?
Based on GuruFocus' analysis, LATAM Airlines Group (LTM) is currently considered Modestly Overvalued. The stock's GF Value™ is $41.52, compared to a current price of $52.26 — trading 25.9% above its estimated fair value. The current Debt-to-EBITDA is 10.48, which is 166% above median its 10-year median of 3.94 and 298.5% above the Transportation industry median of 2.63. LATAM Airlines Group's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For LATAM Airlines Group (LTM), the current Debt-to-EBITDA is 10.48 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LATAM Airlines Group (LTM) Overvalued in 2026?
Based on GuruFocus' analysis, LATAM Airlines Group stock appears to be overvalued.
The current stock price of $52.26 is trading 25.9% above its estimated GF Value™ of $41.52.
GuruFocus considers LATAM Airlines Group to be Modestly Overvalued.
Key valuation signals for LTM:
Debt-to-EBITDA: 10.48 (166% above median its 10-year median of 3.94)
GF Value™: $41.52 vs. price of $52.26 (25.9% above fair value)
Industry Position: 298.5% above the Transportation median (#569 of 867)
No single metric tells the full story. See the LTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LATAM Airlines Group SA is a Chilean-based airline company involved in the transportation of passengers and cargo. The company provides domestic services in Brazil, Chile, Peru, Colombia and Ecuador, as well as regional flights and long-haul operations. It carries out cargo operations using both belly space on passenger flights and dedicated freighter aircraft. The group also offers complementary services, such as ground handling, courier, logistics, and maintenance.
72GF Score
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