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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. LATAM Airlines Group's annualized net income for the quarter that ended in Mar. 2026 was €1,993 Mil. LATAM Airlines Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €414 Mil. Therefore, LATAM Airlines Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 481.58%.
The historical rank and industry rank for LATAM Airlines Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:LFL0'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 1047.33
Current: 1047.33
During the past 13 years, LATAM Airlines Group's highest Return-on-Tangible-Equity was 1,047.33%. The lowest was 0.00%. And the median was 0.00%.
FRA:LFL0's Return-on-Tangible-Equity is ranked better than 94.27% of 978
companies
in the Transportation industry
Industry Median: 8.995
vs FRA:LFL0: 1047.33
LATAM Airlines Group (FRA:LFL0) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
LATAM Airlines Group Return-on-Tangible-Equity Related Terms
LATAM Airlines Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for LATAM Airlines Group's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
FRA:LFL0 vs DAL, UAL, LUV: Return-on-Tangible-Equity Comparison
For the Airlines subindustry, LATAM Airlines Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, LATAM Airlines Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LATAM Airlines Group's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 481.58% mean?
LATAM Airlines Group (FRA:LFL0) has a Return-on-Tangible-Equity of 481.58% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LATAM Airlines Group and its competitors. According to the industry distribution chart, LATAM Airlines Group ranks #56 out of 978 companies in the Transportation industry, placing it in the top 5.7%.
Is LATAM Airlines Group's Return-on-Tangible-Equity too high?
LATAM Airlines Group's current Return-on-Tangible-Equity is 481.58%. The Transportation industry median Return-on-Tangible-Equity is 9.00. LATAM Airlines Group's value of 481.58% is 5253.9% above this industry median. Based on the distribution chart, LATAM Airlines Group ranks #56 out of 978 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, LATAM Airlines Group has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LATAM Airlines Group's Return-on-Tangible-Equity compare to DAL and UAL?
According to the Transportation industry distribution chart, LATAM Airlines Group ranks #56 out of 978 companies for Return-on-Tangible-Equity. This places LATAM Airlines Group in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.00. LATAM Airlines Group's value of 481.58% is 5253.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 9.00, based on 978 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LATAM Airlines Group's current Return-on-Tangible-Equity of 481.58% is 5253.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LATAM Airlines Group and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 9.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LATAM Airlines Group's current Return-on-Tangible-Equity is 481.58%. 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 €31.20, compared to a current price of €45.60 — trading 46.2% above its estimated fair value. The current Return-on-Tangible-Equity is 481.58% and 5253.9% above the Transportation industry median of 9.00. LATAM Airlines Group's overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For LATAM Airlines Group (FRA:LFL0), the current Return-on-Tangible-Equity is 481.58% 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 €45.60 is trading 46.2% above its estimated GF Value™ of €31.20.
GuruFocus considers LATAM Airlines Group to be Significantly Overvalued.
Key valuation signals for FRA:LFL0:
Return-on-Tangible-Equity: 481.58%
GF Value™: €31.20 vs. price of €45.60 (46.2% above fair value)
Industry Position: 5253.9% above the Transportation median (#56 of 978)
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.
67GF Score
Get the complete analysis for FRA:LFL0
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