LATAM Airlines Group S.A. (LTM) Financial Ratios
29 years of historical data (1997–2025) · Industrials · Airlines, Airports & Air Services
EV/EBITDA
↑
6.44
+3% vs avg
5yr avg: 6.23
30Y Low5.8·High6.7
P/FCF
↑
10.20
↑+30% vs avg
5yr avg: 7.82
30Y Low4.9·High10.7
P/B Ratio
↑
11.41
-3% vs avg
5yr avg: 11.81
30Y Low11.7·High11.9
ROE
↓
142.5%
↑-88% vs avg
5yr avg: 1230.0%
30Y Low-6%·High248%
Debt/EBITDA
↓
2.47
↓-30% vs avg
5yr avg: 3.52
30Y Low0.4·High18.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
LTM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
LATAM Airlines Group S.A. trades at 10.4x earnings, 7% above its 5-year average of 9.7x, sitting at the 50th percentile of its historical range. Compared to the Industrials sector median P/E of 25.5x, the stock trades at a discount of 59%. On a free-cash-flow basis, the stock trades at 10.2x P/FCF, 30% above the 5-year average of 7.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $15.2B | $15.9B | $8.3B | — | — | — | — | — | — | — | — |
| Enterprise Value | $21.1B | $21.9B | $13.5B | — | — | — | — | — | — | — | — |
| P/E Ratio → | 10.36 | 10.80 | 8.62 | — | — | — | — | — | — | — | — |
| P/S Ratio | 1.06 | 1.12 | 0.65 | — | — | — | — | — | — | — | — |
| P/B Ratio | 11.41 | 11.90 | 11.72 | — | — | — | — | — | — | — | — |
| P/FCF | 10.20 | 10.70 | 4.94 | — | — | — | — | — | — | — | — |
| P/OCF | 4.65 | 4.88 | 2.68 | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
LTM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
LATAM Airlines Group S.A.'s enterprise value stands at 6.4x EBITDA, roughly in line with its 5-year average of 6.2x. The Industrials sector median is 13.8x, placing the stock at a 53% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.53 | 1.05 | — | — | — | — | — | — | — | — |
| EV / EBITDA | 6.44 | 6.67 | 5.78 | — | — | — | — | — | — | — | — |
| EV / EBIT | 9.04 | 9.36 | 8.78 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 14.69 | 8.02 | — | — | — | — | — | — | — | — |
LTM Profitability
Margins and return-on-capital ratios measuring operating efficiency
LATAM Airlines Group S.A. earns an operating margin of 16.4%, above the Industrials sector average of 4.9%. Operating margins have expanded from 9.3% to 16.4% over the past 3 years, signaling improving operational efficiency. Return on equity of 142.5% is exceptionally high, though this is partly amplified by negative book value driven by aggressive share buybacks — well above the sector median of 8.2%. ROIC of 26.6% represents excellent returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 29.2% | 29.2% | 25.5% | 24.3% | 13.4% | -1.6% | 7.0% | 21.0% | 21.4% | 22.6% | 22.5% |
| Operating Margin | 16.4% | 16.4% | 12.0% | 9.3% | 12.9% | -70.1% | -115.5% | 7.5% | 9.5% | 7.4% | 5.5% |
| Net Profit Margin | 10.2% | 10.2% | 7.6% | 5.0% | 14.3% | -95.2% | -115.9% | 1.9% | 1.8% | 1.6% | 0.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 142.5% | 142.5% | 170.0% | 248.1% | 4359.3% | — | -1323.8% | 5.5% | 4.5% | 3.7% | 1.9% |
| ROA | 8.9% | 8.9% | 6.5% | 4.2% | 10.1% | -32.1% | -24.7% | 1.0% | 1.0% | 0.8% | 0.4% |
| ROIC | 26.6% | 26.6% | 19.8% | 14.1% | 22.4% | -55.5% | -35.2% | 5.0% | 6.7% | 4.6% | 3.2% |
| ROCE | 24.2% | 24.2% | 17.2% | 12.6% | 26.6% | -75.0% | -40.7% | 5.8% | 7.5% | 5.5% | 3.9% |
LTM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
LATAM Airlines Group S.A. carries a Debt/EBITDA ratio of 2.5x, which is manageable (23% below the sector average of 3.2x). Net debt stands at $5.9B ($8.1B total debt minus $2.2B cash). Interest coverage of 3.2x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 6.05 | 6.05 | 10.05 | 16.06 | 223.48 | — | — | 3.33 | 1.94 | 1.85 | 2.06 |
| Debt / EBITDA | 2.47 | 2.47 | 3.05 | 5.50 | 3.04 | — | — | 14.65 | 4.23 | 4.62 | 6.10 |
| Net Debt / Equity | — | 4.44 | 7.30 | 12.14 | 183.88 | — | — | 2.99 | 1.65 | 1.58 | 1.83 |
| Net Debt / EBITDA | 1.81 | 1.81 | 2.22 | 4.16 | 2.50 | — | — | 13.15 | 3.60 | 3.95 | 5.43 |
| Debt / FCF | — | 3.99 | 3.08 | 3.63 | — | — | — | 6.63 | 8.13 | 5.74 | 36.60 |
| Interest Coverage | 3.24 | 3.24 | 1.88 | 1.87 | 2.48 | -4.14 | -7.79 | 1.21 | 1.75 | 1.95 | 1.19 |
LTM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.60x is below 1.0, meaning current liabilities exceed current assets — though the company's $2.2B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 0.74x to 0.60x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.60 | 0.60 | 0.62 | 0.74 | 0.69 | 0.21 | 0.42 | 0.58 | 0.59 | 0.64 | 0.58 |
| Quick Ratio | 0.54 | 0.54 | 0.55 | 0.63 | 0.60 | 0.19 | 0.38 | 0.53 | 0.54 | 0.60 | 0.54 |
| Cash Ratio | 0.30 | 0.30 | 0.32 | 0.33 | 0.27 | 0.09 | 0.23 | 0.21 | 0.25 | 0.28 | 0.26 |
| Asset Turnover | — | 0.81 | 0.84 | 0.79 | 0.71 | 0.37 | 0.25 | 0.48 | 0.56 | 0.51 | 0.47 |
| Inventory Turnover | 22.04 | 22.04 | 21.81 | 14.87 | 16.96 | 17.27 | 11.28 | 22.45 | 27.83 | 31.44 | 28.87 |
| Days Sales Outstanding | — | 39.57 | 38.91 | 49.80 | 47.23 | 75.34 | 71.01 | 56.26 | 54.82 | 48.73 | 51.84 |
LTM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
LATAM Airlines Group S.A. returns 7.8% to shareholders annually — split between a 4.0% dividend yield and 3.9% buyback yield. A payout ratio of 41.5% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 9.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.0% | 3.8% | 2.1% | — | — | — | — | — | — | — | — |
| Payout Ratio | 41.5% | 41.5% | 17.9% | — | — | — | — | 28.9% | 39.9% | 42.9% | 59.6% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.7% | 9.3% | 11.6% | — | — | — | — | — | — | — | — |
| FCF Yield | 9.8% | 9.3% | 20.2% | — | — | — | — | — | — | — | — |
| Buyback Yield | 3.9% | 3.7% | 0.0% | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 7.8% | 7.5% | 2.1% | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $295M | $302M | $302M | $49M | $5M | $5M | $5M | $5M | $5M | $5M |
Peer Comparison
Compare LTM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 LTMYou | $15B | 10.4 | 6.4 | 10.2 | 29.2% | 16.4% | 142.5% | 26.6% | 2.5 |
 CPA | $4B | 8.4 | 4.7 | 10.9 | 31.9% | 21.8% | 27.1% | 15.2% | 1.8 |
 VLRS | $898M | -8.7 | 5.1 | 1.2 | 27.4% | 4.4% | -33.1% | 3.0% | 4.9 |
 OMAB | $5B | 16.7 | 10.1 | 12.1 | 75.6% | 56.0% | 48.6% | 31.7% | 1.4 |
 DAL | $48B | 9.5 | 7.8 | 12.4 | 22.8% | 9.2% | 27.8% | 12.0% | 2.6 |
 UAL | $32B | 9.8 | 7.5 | 12.7 | 64.1% | 8.0% | 24.0% | 9.1% | 4.1 |
 AAL | $9B | 77.5 | 12.5 | — | 19.2% | 2.7% | — | 3.5% | 10.5 |
 LUV | $20B | 52.4 | 11.6 | — | 17.4% | 1.5% | 4.8% | 3.0% | 3.0 |
 JBLU | $2B | -3.1 | 31.6 | — | 33.9% | -4.1% | -25.3% | -2.7% | 32.0 |
 ALK | $5B | 46.7 | 9.9 | — | 59.7% | 2.1% | 2.4% | 2.3% | 6.3 |
 BA | $182B | 93.2 | — | — | 4.8% | -6.1% | 289.7% | -9.5% | — |
| Industrials Median | — | 25.5 | 13.8 | 20.7 | 32.7% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonLTM — Frequently Asked Questions
Quick answers to the most common questions about buying LTM stock.
What is LATAM Airlines Group S.A.'s P/E ratio?
LATAM Airlines Group S.A.'s current P/E ratio is 10.4x. The historical average is 9.7x. This places it at the 50th percentile of its historical range.
What is LATAM Airlines Group S.A.'s EV/EBITDA?
LATAM Airlines Group S.A.'s current EV/EBITDA is 6.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.2x.
What is LATAM Airlines Group S.A.'s ROE?
LATAM Airlines Group S.A.'s return on equity (ROE) is 142.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 36.4%.
Is LTM stock overvalued?
Based on historical data, LATAM Airlines Group S.A. is trading at a P/E of 10.4x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is LATAM Airlines Group S.A.'s dividend yield?
LATAM Airlines Group S.A.'s current dividend yield is 3.96% with a payout ratio of 41.5%.
What are LATAM Airlines Group S.A.'s profit margins?
LATAM Airlines Group S.A. has 29.2% gross margin and 16.4% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does LATAM Airlines Group S.A. have?
LATAM Airlines Group S.A.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.