Latest Ratios: P/E Ratio 9.6x · EV/EBITDA 6.0x · ROE 142.5%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.8B | $15.9B | $8.3B | — | — | — | — | — | — | — | — |
| Enterprise Value | $19.7B | $21.9B | $13.5B | — | — | — | — | — | — | — | — |
| P/E Ratio → | 9.58 | 10.80 | 8.62 | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.96 | 1.12 | 0.65 | — | — | — | — | — | — | — | — |
| P/B Ratio | 10.56 | 11.90 | 11.72 | — | — | — | — | — | — | — | — |
| P/FCF | 9.25 | 10.70 | 4.94 | — | — | — | — | — | — | — | — |
| P/OCF | 4.22 | 4.88 | 2.68 | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 6.02 | 6.67 | 5.78 | — | — | — | — | — | — | — | — |
| EV / EBIT | 8.44 | 9.34 | 7.45 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 14.69 | 8.02 | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 3.39 | 3.15 | — | — | 5.25 | 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 | 2.56 | 2.60 | — | — | 4.71 | 3.60 | 3.95 | 5.43 |
| Debt / FCF | — | 3.99 | 3.08 | 3.63 | — | — | — | 6.63 | 8.13 | 5.74 | 36.60 |
| Interest Coverage | 3.25 | 3.25 | 2.21 | 1.87 | 2.48 | -4.14 | -7.79 | 1.21 | 1.75 | 1.95 | 1.19 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 4.3% | 3.8% | 2.1% | — | — | — | — | — | — | — | — |
| Payout Ratio | 41.5% | 41.5% | 17.9% | — | — | — | — | 28.9% | 39.9% | 42.9% | 59.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.4% | 9.3% | 11.6% | — | — | — | — | — | — | — | — |
| FCF Yield | 10.8% | 9.3% | 20.2% | — | — | — | — | — | — | — | — |
| Buyback Yield | 4.2% | 3.7% | 0.0% | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 8.5% | 7.5% | 2.1% | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $295M | $302M | $302M | $49M | $5M | $5M | $5M | $5M | $5M | $5M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying LTM stock.
LATAM Airlines Group S.A.'s current P/E ratio is 9.6x. The historical average is 9.7x. This places it at the 50th percentile of its historical range.
LATAM Airlines Group S.A.'s current EV/EBITDA is 6.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.2x.
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%.
Based on historical data, LATAM Airlines Group S.A. is trading at a P/E of 9.6x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
LATAM Airlines Group S.A.'s current dividend yield is 4.29% with a payout ratio of 41.5%.
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.
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.
Key Metrics
Top Statement Risk
High leverage and FX exposure
Margin Volatility Masks Underlying Recovery
LTM's operating margin swung from 20.1% in 2026Q1 to 5.5% in 2026Q2, according to recent financial statements, highlighting extreme sensitivity to fuel costs and route mix, yet the 10-quarter average of 13.9% suggests a post-restructuring profitability reset.
The dramatic 15-point sequential drop in gross margin from 31.3% to 16.3% in 2026Q2, as reported in the income statement, appears to be driven by fuel price spikes and seasonal route mix shifts rather than a structural deterioration. Over the past ten quarters, operating margin has averaged 13.9%, with a clear upward trend from 9.0% in 2024Q2 to 20.1% in 2026Q1, indicating that the company has successfully reset its cost base post-Chapter 11. However, the 2026Q2 collapse to 5.5% underscores that margin stability remains elusive, and investors should monitor whether this is a temporary fuel-driven dip or the beginning of a new volatility regime.
ROIC Recovery Tempered by Leverage
ROIC improved from 3.5% in 2024Q2 to 8.2% in 2026Q1, based on reported figures, but remains below the cost of capital, suggesting that while returns are recovering, they are not yet compounding value creation.
The ten-quarter ROIC trend shows a clear upward trajectory, with a peak of 8.2% in 2026Q1, but the 2026Q2 drop to 2.1% highlights the fragility of these returns. ROE has been exceptionally volatile, ranging from 6.4% to 50.3%, largely due to the thin equity base post-restructuring, which amplifies earnings swings. The elevated leverage (D/E of 4.54 in 2026Q2) means that ROE is not a reliable indicator of underlying profitability; ROIC is the more meaningful metric, and its sub-10% level suggests that LTM is still in the early stages of earning its cost of capital.
Working Capital Efficiency Improves with Scale
LTM's cash conversion cycle turned negative to -7 days in 2026Q1, as per financial statements, indicating that the company is collecting cash from customers before paying suppliers, a sign of improved working capital management.
The CCC has improved from +29 days in 2024Q2 to -7 days in 2026Q1, driven by a reduction in DSO from 46 to 36 days and an extension of DPO from 38 to 59 days over the same period. This suggests that LTM is leveraging its scale to negotiate better payment terms with suppliers while accelerating ticket collections, likely aided by the LATAM Pass loyalty program and digital sales channels. However, the 2026Q2 CCC reverted to +4 days, indicating that the negative cycle may not be sustainable, and investors should watch whether the company can maintain this efficiency as it expands capacity.
Leverage Declines but Remains a Key Risk
Debt-to-equity fell from 12.19 in 2024Q1 to 4.54 in 2026Q2, according to recent SEC filings, yet interest coverage of 1.40x in 2026Q2 remains thin, indicating that debt service is still a significant burden.
The deleveraging trend is encouraging, with D/E dropping from double digits to 4.54, but the absolute level of debt ($9.0B) remains high relative to equity ($2.0B). Interest coverage has improved from 1.61x in 2024Q2 to 5.09x in 2026Q1, but the 2026Q2 collapse to 1.40x underscores the vulnerability to earnings volatility. The Altman Z-Score of 1.65, as reported in recent filings, places LTM in the distress zone, suggesting that any demand shock could disproportionately pressure the equity. Investors should monitor the company's ability to refinance upcoming maturities and whether operating cash flow can consistently cover interest expenses.
Thin Liquidity Buffer Persists
Current ratio has remained below 1.0 for ten consecutive quarters, at 0.67 in 2026Q2, based on reported figures, indicating that short-term liabilities exceed current assets, a common but risky profile for airlines.
The quick ratio of 0.60 in 2026Q2 suggests that even excluding inventory, LTM cannot cover its current liabilities with liquid assets alone. This thin liquidity position is typical for airlines, which rely on strong operating cash flow and access to credit markets, but it amplifies refinancing risk in a downturn. The improvement from 0.76 in 2024Q1 to 0.67 in 2026Q2 is marginal, and the company's ability to weather a severe demand shock without external support remains questionable. Investors should monitor the cash balance and undrawn credit facilities, which are not disclosed in the provided data.
Misapplied Metric: Debt-to-Equity
The most commonly misapplied ratio for LTM is debt-to-equity, as reported figures exclude operating lease liabilities, which are substantial for airlines, potentially understating true leverage and overstating equity quality.
Analysts often use D/E to assess LTM's leverage, but the reported D/E of 4.54 in 2026Q2 does not include operating lease obligations, which are a significant source of off-balance-sheet financing for airlines. When adjusted for lease liabilities, the effective leverage is likely much higher, as suggested by the prior balance sheet analysis. A more appropriate metric is debt-to-EBITDA, which at 41.93x in 2026Q2 (though distorted by low EBITDA) or the adjusted EV/EBITDA of 6.79x provides a better picture of the company's ability to service its obligations. Investors should focus on lease-adjusted leverage and interest coverage rather than D/E to gauge true financial risk.