LATAM Airlines GroupLTM -0.84%71 EV-to-FCF is 25.37 as of Jul. 05, 2026, which is 205% above its 10-year median of 8.33. GuruFocus rates LTM with a GF Score™ of 71/100 and a GF Value™ of $39.09 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 670 Transportation companies, LATAM Airlines Group ranks worse than 71.79% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, LATAM Airlines Group's Enterprise Value is $21,923 Mil.
LATAM Airlines Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $864 Mil. Therefore, LATAM Airlines Group's EV-to-FCF for today is 25.37.
The historical rank and industry rank for LATAM Airlines Group's EV-to-FCF or its related term are showing as below:
LTM'
s EV-to-FCF Range Over the Past 10 Years
Min: -111.78 Med: 8.33 Max: 70.59
Current: 25.47
During the past 13 years, the highest EV-to-FCF of LATAM Airlines Group was 70.59. The lowest was -111.78. And the median was 8.33.
LTM's EV-to-FCF is ranked worse than 71.79% of 670
companies
in the Transportation industry
Industry Median: 14.205
vs LTM: 25.47
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
LATAM Airlines Group (NYSE:LTM) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
LATAM Airlines Group's PE Ratio (TTM) for today is calculated as:
LATAM Airlines Group's share price for today is $56.43.
LATAM Airlines Group's Earnings per Share (Diluted) 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 $5.798.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
LATAM Airlines Group EV-to-FCF Related Terms
LATAM Airlines Group EV-to-FCF Historical Data
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The historical data trend for LATAM Airlines Group's EV-to-FCF 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 EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Transportation Industry
For the Transportation industry and Industrials sector, LATAM Airlines Group's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where LATAM Airlines Group's EV-to-FCF falls into.
LATAM Airlines Group's current Enterprise Value is $21,923 Mil.
LATAM Airlines Group's Free Cash Flow 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 $864 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.
LATAM Airlines Group (LTM) has a EV-to-FCF of 25.37 as of Jul. 05, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on LATAM Airlines Group and its competitors. This is 205% above median its historical median of 8.33. According to the industry distribution chart, LATAM Airlines Group ranks #481 out of 670 companies in the Transportation industry, placing it in the top 71.8%.
Is LATAM Airlines Group's EV-to-FCF too high?
LATAM Airlines Group's current EV-to-FCF of 25.37 is 205% above median its 10-year median of 8.33. The Transportation industry median EV-to-FCF is 14.21. LATAM Airlines Group's value of 25.37 is 78.6% above this industry median. Based on the distribution chart, LATAM Airlines Group ranks #481 out of 670 companies in the Transportation industry, which is below the industry midpoint. Overall, LATAM Airlines Group has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LATAM Airlines Group's EV-to-FCF compare to DAL and UAL?
According to the Transportation industry distribution chart, LATAM Airlines Group ranks #481 out of 670 companies for EV-to-FCF. This places LATAM Airlines Group in the lower half of its industry. The industry median EV-to-FCF is 14.21. LATAM Airlines Group's value of 25.37 is 78.6% above this benchmark. While the company's 10-year median is 8.33 vs. the industry median of 14.21, 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 EV-to-FCF for a Transportation company?
The median EV-to-FCF among Transportation companies is 14.21, based on 670 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LATAM Airlines Group's current EV-to-FCF of 25.37 is 78.6% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on LATAM Airlines Group and its competitors. For the Transportation industry, the median EV-to-FCF is 14.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LATAM Airlines Group's current EV-to-FCF is 25.37, which is 205% above median its own 10-year median of 8.33. 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 Significantly Overvalued. The stock's GF Value™ is $39.09, compared to a current price of $56.43 — trading 44.4% above its estimated fair value. The current EV-to-FCF is 25.37, which is 205% above median its 10-year median of 8.33 and 78.6% above the Transportation industry median of 14.21. LATAM Airlines Group's overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For LATAM Airlines Group (LTM), the current EV-to-FCF is 25.37 as of Jul. 05, 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 $56.43 is trading 44.4% above its estimated GF Value™ of $39.09.
GuruFocus considers LATAM Airlines Group to be Significantly Overvalued.
Key valuation signals for LTM:
EV-to-FCF: 25.37 (205% above median its 10-year median of 8.33)
GF Value™: $39.09 vs. price of $56.43 (44.4% above fair value)
Industry Position: 78.6% above the Transportation median (#481 of 670)
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.
71GF Score
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