LATAM Airlines Group (FRA:LFL0) EBIT: €2,157 Mil (TTM As of Mar. 2026)


FRA:LFL0 LATAM Airlines Group SA FRA:LFL0
66 GF Score
Price €48.60
GF Value €32.08
Valuation Significantly Overvalued
! 4 Warning Signs
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What is LATAM Airlines Group EBIT?

LATAM Airlines Group FRA:LFL0 -1.22% 66 EBIT is €2,157 Mil as of Mar. 2026. GuruFocus rates FRA:LFL0 with a GF Score™ of 66/100 and a GF Value™ of €32.08 (Significantly Overvalued). The stock has 4 warning signs investors should review.

LATAM Airlines Group's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €679 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €2,157 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. LATAM Airlines Group's annualized ROC % for the quarter that ended in Mar. 2026 was 16.86%. LATAM Airlines Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 26.07%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. LATAM Airlines Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 11.35%.


LATAM Airlines Group  (FRA:LFL0) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

LATAM Airlines Group's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=2831.44 * ( 1 - 8.38% )/( (15057.176 + 15717.353)/ 2 )
=2594.165328/15387.2645
=16.86 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=15065.321 - 2494.294 - ( 1882.18 - max(0, 6229.412 - 3743.263+1882.18))
=15057.176

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=16183.455 - 2601.316 - ( 2241.773 - max(0, 6504.612 - 4369.398+2241.773))
=15717.353

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

LATAM Airlines Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2715.06/( ( (10202.75 + max(-3964.933, 0)) + (10628.224 + max(-3861.017, 0)) )/ 2 )
=2715.06/( ( 10202.75 + 10628.224 )/ 2 )
=2715.06/10415.487
=26.07 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1180.116 + 391.615 + 56.259) - (2494.294 + 3084.876 + 13.753000000001)
=-3964.933

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1276.074 + 453.26 + 173.696) - (2601.316 + 3147.226 + 15.505)
=-3861.017

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

LATAM Airlines Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=2156.621/19001.616
=11.35 %

* 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.


LATAM Airlines Group EBIT Related Terms


LATAM Airlines Group EBIT Historical Data

* Premium members only.

The historical data trend for LATAM Airlines Group's EBIT 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.

LATAM Airlines Group EBIT Chart

LATAM Airlines Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2,952.53 2,131.44 1,173.19 1,733.12 1,911.84

LATAM Airlines Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 474.43 351.11 526.61 600.14 678.77

FRA:LFL0 vs DAL, UAL, LUV: EBIT Comparison

For the Airlines subindustry, LATAM Airlines Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Transportation Industry

For the Transportation industry and Industrials sector, LATAM Airlines Group's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where LATAM Airlines Group's EV-to-EBIT falls into.


FRA:LFL0
66GF Score
LATAM Airlines Group SA FRA:LFL0
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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LATAM Airlines Group EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,157 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €2,157 Mil mean?
LATAM Airlines Group (FRA:LFL0) has a EBIT of €2,157 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on LATAM Airlines Group.
Is LATAM Airlines Group's EBIT too high?
LATAM Airlines Group's current EBIT is €2,157 Mil. Overall, LATAM Airlines Group has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LATAM Airlines Group's EBIT compare to DAL and UAL?
LATAM Airlines Group's EBIT of €2,157 Mil can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Transportation company?
A good EBIT depends on the Transportation industry context. However, EBIT 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 EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on LATAM Airlines Group. LATAM Airlines Group's current EBIT is €2,157 Mil. 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 (FRA:LFL0) is currently considered Significantly Overvalued. The stock's GF Value™ is €32.08, compared to a current price of €48.60 — trading 51.5% above its estimated fair value. The current EBIT is €2,157 Mil. LATAM Airlines Group's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For LATAM Airlines Group (FRA:LFL0), the current EBIT is €2,157 Mil as of Mar. 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 (FRA:LFL0) Overvalued in 2026?

Based on GuruFocus' analysis, LATAM Airlines Group stock appears to be overvalued. The current stock price of €48.60 is trading 51.5% above its estimated GF Value™ of €32.08. GuruFocus considers LATAM Airlines Group to be Significantly Overvalued.

Key valuation signals for FRA:LFL0:

  • EBIT: €2,157 Mil
  • GF Value™: €32.08 vs. price of €48.60 (51.5% above fair value)
  • GF Score™: 66/100 with 4 warning signs

No single metric tells the full story. See the FRA:LFL0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


LATAM Airlines Group Business Description

Address Presidente Riesco 5711, 20th Floor, Las Condes, Santiago, CHL
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.
66GF Score

Get the complete analysis for FRA:LFL0

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€48.60
Price
€32.08
GF Value