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Ryanair HoldingsCHIX:RYAI 84 Degree of Operating Leverage is -1.81 as of Jun. 2026. GuruFocus rates CHIX:RYAI with a GF Score™ of 84/100 and a GF Value™ of €27.09 (Fairly Valued). The stock has 1 warning sign investors should review. Among 985 Transportation companies, Ryanair Holdings ranks better than 79.09% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Ryanair Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -1.81. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Ryanair Holdings's Degree of Operating Leverage or its related term are showing as below:
CHIX:RYAi's Degree of Operating Leverage is ranked better than 79.09% of 985
companies
in the Transportation industry
Industry Median: 1.08
vs CHIX:RYAi: -1.81
Ryanair Holdings (CHIX:RYAi) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Ryanair Holdings Degree of Operating Leverage Related Terms
Ryanair Holdings Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Ryanair Holdings's Degree of Operating Leverage 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.
Ryanair Holdings Degree of Operating Leverage Chart
CHIX:RYAI vs DAL, UAL, LUV: Degree of Operating Leverage Comparison
For the Airlines subindustry, Ryanair Holdings's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Ryanair Holdings Degree of Operating Leverage vs Transportation Industry
For the Transportation industry and Industrials sector, Ryanair Holdings's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Ryanair Holdings's Degree of Operating Leverage 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of -1.81 mean?
Ryanair Holdings (CHIX:RYAI) has a Degree of Operating Leverage of -1.81 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Ryanair Holdings and its competitors. According to the industry distribution chart, Ryanair Holdings ranks #206 out of 985 companies in the Transportation industry, placing it in the top 20.9%.
Is Ryanair Holdings' Degree of Operating Leverage too high?
Ryanair Holdings' current Degree of Operating Leverage is -1.81. Based on the distribution chart, Ryanair Holdings ranks #206 out of 985 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Ryanair Holdings has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ryanair Holdings' Degree of Operating Leverage compare to DAL and UAL?
According to the Transportation industry distribution chart, Ryanair Holdings ranks #206 out of 985 companies for Degree of Operating Leverage. This places Ryanair Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.08. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Transportation company?
The median Degree of Operating Leverage among Transportation companies is 1.08, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Ryanair Holdings and its competitors. For the Transportation industry, the median Degree of Operating Leverage is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ryanair Holdings's current Degree of Operating Leverage is -1.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ryanair Holdings stock overvalued right now?
Based on GuruFocus' analysis, Ryanair Holdings (CHIX:RYAI) is currently considered Fairly Valued. The stock's GF Value™ is €27.09, compared to a current price of €24.76 — trading 8.6% below its estimated fair value. The current Degree of Operating Leverage is -1.81. Ryanair Holdings' overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Ryanair Holdings (CHIX:RYAI), the current Degree of Operating Leverage is -1.81 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 Ryanair Holdings (CHIX:RYAI) Overvalued in 2026?
Based on GuruFocus' analysis, Ryanair Holdings stock appears to be undervalued.
The current stock price of €24.76 is trading 8.6% below its estimated GF Value™ of €27.09.
GuruFocus considers Ryanair Holdings to be Fairly Valued.
Key valuation signals for CHIX:RYAI:
Degree of Operating Leverage: -1.81
GF Value™: €27.09 vs. price of €24.76 (8.6% below fair value)
No single metric tells the full story. See the CHIX:RYAI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ryanair is Europe's largest low-cost airline, known for its extensive network and highly efficient business model. Operating over 3,600 flights daily across 240-plus destinations in 40 countries, Ryanair has built its success on offering affordable air travel while maintaining tight control over costs. The airline primarily uses Boeing 737 aircraft, including the newer 737 8-200 "Gamechanger" variant, which simplifies operations and reduces expenses. Ryanair focuses on high passenger volume, ancillary revenue, and operational efficiency, ensuring its position as a leading airline in Europe.
84GF Score
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