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LATAM Airlines GroupFRA:LFL0 +2.23%69 5-Year Yield-on-Cost % is 2.93 as of Aug. 01, 2026, which is 281% above its 10-year median of 0.77. GuruFocus rates FRA:LFL0 with a GF Score™ of 69/100 and a GF Value™ of €33.84. The stock has 3 warning signs investors should review. Among 659 Transportation companies, LATAM Airlines Group ranks worse than 64.64% on this metric.
LATAM Airlines Group's yield on cost for the quarter that ended in Mar. 2026 was 2.93.
The historical rank and industry rank for LATAM Airlines Group's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:LFL0'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.22 Med: 0.77 Max: 7.23
Current: 2.93
During the past 13 years, LATAM Airlines Group's highest Yield on Cost was 7.23. The lowest was 0.22. And the median was 0.77.
FRA:LFL0's 5-Year Yield-on-Cost % is ranked worse than 64.64% of 659
companies
in the Transportation industry
Industry Median: 4.04
vs FRA:LFL0: 2.93
LATAM Airlines Group (FRA:LFL0) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
LATAM Airlines Group 5-Year Yield-on-Cost % Related Terms
FRA:LFL0 vs DAL, UAL, LUV: 5-Year Yield-on-Cost % Comparison
For the Airlines subindustry, LATAM Airlines Group's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Transportation Industry
For the Transportation industry and Industrials sector, LATAM Airlines Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where LATAM Airlines Group's 5-Year Yield-on-Cost % falls into.
LATAM Airlines Group 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
LATAM Airlines Group (FRA:LFL0) has a 5-Year Yield-on-Cost % of 2.93 as of Aug. 01, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on LATAM Airlines Group and its competitors. This is 281% above median its historical median of 0.77. Over the past decade, LATAM Airlines Group's 5-Year Yield-on-Cost % has ranged from 0.22 to 7.23. According to the industry distribution chart, LATAM Airlines Group ranks #426 out of 659 companies in the Transportation industry, placing it in the top 64.6%.
Is LATAM Airlines Group's 5-Year Yield-on-Cost % too high?
LATAM Airlines Group's current 5-Year Yield-on-Cost % of 2.93 is 281% above median its 10-year median of 0.77. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 7.23. The Transportation industry median 5-Year Yield-on-Cost % is 4.04. LATAM Airlines Group's value of 2.93 is 27.5% below this industry median. Based on the distribution chart, LATAM Airlines Group ranks #426 out of 659 companies in the Transportation industry, which is below the industry midpoint. Overall, LATAM Airlines Group has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does LATAM Airlines Group's 5-Year Yield-on-Cost % compare to DAL and UAL?
According to the Transportation industry distribution chart, LATAM Airlines Group ranks #426 out of 659 companies for 5-Year Yield-on-Cost %. This places LATAM Airlines Group in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.04. LATAM Airlines Group's value of 2.93 is 27.5% below this benchmark. Historically, LATAM Airlines Group's own 5-Year Yield-on-Cost % has ranged from 0.22 to 7.23 over the past decade. While the company's 10-year median is 0.77 vs. the industry median of 4.04, 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 5-Year Yield-on-Cost % for a Transportation company?
The median 5-Year Yield-on-Cost % among Transportation companies is 4.04, based on 659 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LATAM Airlines Group's current 5-Year Yield-on-Cost % of 2.93 is 27.5% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on LATAM Airlines Group and its competitors. For the Transportation industry, the median 5-Year Yield-on-Cost % is 4.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LATAM Airlines Group's current 5-Year Yield-on-Cost % is 2.93, which is 281% above median its own 10-year median of 0.77. 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?
LATAM Airlines Group (FRA:LFL0) has a current 5-Year Yield-on-Cost % of 2.93. The stock's GF Value™ is €33.84, compared to a current price of €45.80 — trading 35.3% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.93, which is 281% above median its 10-year median of 0.77 and 27.5% below the Transportation industry median of 4.04. LATAM Airlines Group's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For LATAM Airlines Group (FRA:LFL0), the current 5-Year Yield-on-Cost % is 2.93 as of Aug. 01, 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 €45.80 is trading 35.3% above its estimated GF Value™ of €33.84.
Key valuation signals for FRA:LFL0:
5-Year Yield-on-Cost %: 2.93 (281% above median its 10-year median of 0.77)
GF Value™: €33.84 vs. price of €45.80 (35.3% above fair value)
Industry Position: 27.5% below the Transportation median (#426 of 659)
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.
69GF Score
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