LATAM Airlines GroupFRA:LFL0 +7.76%70 Interest Coverage is 5.31 as of Mar. 2026, which is 247% above its 10-year median of 1.53. GuruFocus rates FRA:LFL0 with a GF Score™ of 70/100 and a GF Value™ of €30.62 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 838 Transportation companies, LATAM Airlines Group ranks worse than 59.55% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. LATAM Airlines Group's
Operating Income
for the
three
months ended in Mar. 2026 was €708 Mil. LATAM Airlines Group's Interest Expense for the
three
months ended in Mar. 2026 was €-133 Mil.
LATAM Airlines Group's interest coverage for the quarter that ended in Mar. 2026 was 5.31.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for LATAM Airlines Group's Interest Coverage or its related term are showing as below:
FRA:LFL0'
s Interest Coverage Range Over the Past 10 Years
Min: 1.11 Med: 1.53 Max: 4.15
Current: 4.15
FRA:LFL0's Interest Coverage is ranked worse than 59.55% of 838
companies
in the Transportation industry
Industry Median: 5.72
vs FRA:LFL0: 4.15
LATAM Airlines Group (FRA:LFL0) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
LATAM Airlines Group Interest Coverage Related Terms
LATAM Airlines Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for LATAM Airlines Group's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:LFL0 vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, LATAM Airlines Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, LATAM Airlines Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where LATAM Airlines Group's Interest Coverage falls into.
LATAM Airlines Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:LFL0) has a Interest Coverage of 5.31 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on LATAM Airlines Group and its competitors. This is 247% above median its historical median of 1.53. Over the past decade, LATAM Airlines Group's Interest Coverage has ranged from 1.11 to 4.15. According to the industry distribution chart, LATAM Airlines Group ranks #499 out of 838 companies in the Transportation industry, placing it in the top 59.5%.
Is LATAM Airlines Group's Interest Coverage too high?
LATAM Airlines Group's current Interest Coverage of 5.31 is 247% above median its 10-year median of 1.53. Over the past 10 years, this metric has ranged from a low of 1.11 to a high of 4.15. The Transportation industry median Interest Coverage is 5.72. LATAM Airlines Group's value of 5.31 is 7.2% below this industry median. Based on the distribution chart, LATAM Airlines Group ranks #499 out of 838 companies in the Transportation industry, which is below the industry midpoint. Overall, LATAM Airlines Group has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LATAM Airlines Group's Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, LATAM Airlines Group ranks #499 out of 838 companies for Interest Coverage. This places LATAM Airlines Group in the lower half of its industry. The industry median Interest Coverage is 5.72. LATAM Airlines Group's value of 5.31 is 7.2% below this benchmark. Historically, LATAM Airlines Group's own Interest Coverage has ranged from 1.11 to 4.15 over the past decade. While the company's 10-year median is 1.53 vs. the industry median of 5.72, LATAM Airlines Group has consistently been below 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 Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.72, based on 838 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LATAM Airlines Group's current Interest Coverage of 5.31 is 7.2% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on LATAM Airlines Group and its competitors. For the Transportation industry, the median Interest Coverage is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LATAM Airlines Group's current Interest Coverage is 5.31, which is 247% above median its own 10-year median of 1.53. 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 €30.62, compared to a current price of €50.00 — trading 63.3% above its estimated fair value. The current Interest Coverage is 5.31, which is 247% above median its 10-year median of 1.53 and 7.2% below the Transportation industry median of 5.72. LATAM Airlines Group's overall GF Score™ is 70/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For LATAM Airlines Group (FRA:LFL0), the current Interest Coverage is 5.31 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 €50.00 is trading 63.3% above its estimated GF Value™ of €30.62.
GuruFocus considers LATAM Airlines Group to be Significantly Overvalued.
Key valuation signals for FRA:LFL0:
Interest Coverage: 5.31 (247% above median its 10-year median of 1.53)
GF Value™: €30.62 vs. price of €50.00 (63.3% above fair value)
Industry Position: 7.2% below the Transportation median (#499 of 838)
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 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.
70GF Score
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