LATAM Airlines Group (FRA:LFL0) ROCE %: 29.33% (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 ROCE %?

LATAM Airlines Group FRA:LFL0 -1.22% 66 ROCE % is 29.33% 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. LATAM Airlines Group's annualized ROCE % for the quarter that ended in Mar. 2026 was 29.33%.

LATAM Airlines Group  (FRA:LFL0) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

LATAM Airlines Group ROCE % Related Terms

LATAM Airlines Group ROCE % Historical Data

* Premium members only.

The historical data trend for LATAM Airlines Group's ROCE % 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 ROCE % Chart

LATAM Airlines Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -78.01 49.97 14.76 20.64 21.98

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
ROCE % 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 22.40 17.00 25.88 27.17 29.33
FRA:LFL0
66GF Score
LATAM Airlines Group SA FRA:LFL0
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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LATAM Airlines Group ROCE % Calculation

LATAM Airlines Group's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=1911.84/( ( (14566.964 - 6007.754) + (15065.321 - 6229.412) )/ 2 )
=1911.84/( (8559.21+8835.909)/ 2 )
=1911.84/8697.5595
=21.98 %

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

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=2715.06/( ( (15065.321 - 6229.412) + (16183.455 - 6504.612) )/ 2 )
=2715.06/( ( 8835.909 + 9678.843 )/ 2 )
=2715.06/9257.376
=29.33 %

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

* 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 ROCE % →
What does a ROCE % of 29.33% mean?
LATAM Airlines Group (FRA:LFL0) has a ROCE % of 29.33% as of Mar. 2026.
Is LATAM Airlines Group's ROCE % too high?
LATAM Airlines Group's current ROCE % is 29.33%. The Transportation industry median ROCE % is 7.74. LATAM Airlines Group's value of 29.33% is 278.9% above this industry median. 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 ROCE % compare to DAL and UAL?
LATAM Airlines Group's ROCE % of 29.33% can be compared against companies in the Transportation industry. The industry median ROCE % is 7.74. LATAM Airlines Group's value of 29.33% is 278.9% 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 ROCE % for a Transportation company?
The median ROCE % among Transportation companies is 7.74, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LATAM Airlines Group's current ROCE % of 29.33% is 278.9% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Transportation industry, the median ROCE % is 7.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LATAM Airlines Group's current ROCE % is 29.33%. 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 (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 ROCE % is 29.33% and 278.9% above the Transportation industry median of 7.74. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For LATAM Airlines Group (FRA:LFL0), the current ROCE % is 29.33% 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:

  • ROCE %: 29.33%
  • GF Value™: €32.08 vs. price of €48.60 (51.5% above fair value)
  • GF Score™: 66/100 with 4 warning signs
  • Industry Position: 278.9% above the Transportation median

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

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

€48.60
Price
€32.08
GF Value