Air France-KLM Valuation

Is AFR0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AFR0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AFR0 (€7.24) is trading above our estimate of fair value (€3.71)

Significantly Below Fair Value: AFR0 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AFR0?

Key metric: As AFR0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AFR0. This is calculated by dividing AFR0's market cap by their current earnings.
What is AFR0's PE Ratio?
PE Ratio	30.3x
Earnings	€63.00m
Market Cap	€1.91b

AFR0 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	5.4x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does AFR0's PE Ratio compare to its peers?

The above table shows the PE ratio for AFR0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	18.6x
LHA Deutsche Lufthansa	6.6x	14.0%	€7.4b
SIX2 Sixt	13.8x	16.3%	€3.0b
FRA Fraport	10.4x	3.7%	€4.8b
HHFA Hamburger Hafen und Logistik	43.8x	55.0%	€1.4b
AFR0 Air France-KLM	30.3x	33.6%	€1.9b

Price-To-Earnings vs Peers: AFR0 is expensive based on its Price-To-Earnings Ratio (30.3x) compared to the peer average (18.6x).

Price to Earnings Ratio vs Industry

How does AFR0's PE Ratio compare vs other companies in the Global Airlines Industry?

6 Companies	Price / Earnings	Estimated Growth	Market Cap

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: AFR0 is expensive based on its Price-To-Earnings Ratio (30.3x) compared to the Global Airlines industry average (10.9x).

Price to Earnings Ratio vs Fair Ratio

What is AFR0's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AFR0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.3x
Fair PE Ratio	18.4x

Price-To-Earnings vs Fair Ratio: AFR0 is expensive based on its Price-To-Earnings Ratio (30.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AFR0 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€7.24	€10.64 +47.0%	42.2%	€27.50	€6.45	n/a	18
Nov ’25	€8.84	€11.15 +26.1%	39.9%	€27.50	€7.50	n/a	18
Oct ’25	€8.41	€11.07 +31.6%	40.8%	€27.50	€7.50	n/a	18
Sep ’25	€8.07	€10.83 +34.2%	42.1%	€27.50	€7.50	n/a	18
Aug ’25	€7.72	€11.06 +43.3%	42.3%	€27.50	€7.50	n/a	17
Jul ’25	€8.08	€13.46 +66.6%	41.0%	€27.50	€8.90	n/a	17
Jun ’25	€10.45	€14.36 +37.4%	38.8%	€27.50	€9.00	n/a	16
May ’25	€9.56	€14.46 +51.3%	39.1%	€27.50	€9.00	n/a	16
Apr ’25	€10.32	€15.61 +51.2%	35.5%	€27.50	€9.00	n/a	16
Mar ’25	€10.38	€15.89 +53.1%	35.2%	€27.50	€9.20	n/a	17
Feb ’25	€11.86	€16.45 +38.7%	32.3%	€27.50	€9.10	n/a	17
Jan ’25	€13.58	€16.71 +23.0%	29.1%	€26.00	€9.50	n/a	17
Dec ’24	€11.96	€17.35 +45.2%	26.3%	€26.00	€10.00	n/a	17
Nov ’24	€10.71	€17.76 +65.9%	23.6%	€26.00	€12.00	€8.84	17
Oct ’24	€11.90	€19.75 +66.0%	21.6%	€26.00	€12.00	€8.41	16
Sep ’24	€14.10	€21.03 +49.2%	19.1%	€26.00	€14.00	€8.07	16
Aug ’24	€15.44	€21.16 +37.1%	18.5%	€26.00	€14.00	€7.72	16
Jul ’24	€17.23	€21.03 +22.1%	17.8%	€26.00	€14.00	€8.08	16
Jun ’24	€16.70	€20.91 +25.2%	18.4%	€26.00	€14.00	€10.45	16
May ’24	€15.58	€19.03 +22.2%	23.9%	€25.00	€11.00	€9.56	17
Apr ’24	€16.99	€18.12 +6.6%	24.7%	€24.00	€11.00	€10.32	17
Mar ’24	€17.84	€16.72 -6.3%	23.1%	€23.00	€11.00	€10.38	17
Feb ’24	€16.00	€14.77 -7.7%	20.9%	€20.00	€10.00	€11.86	16
Jan ’24	€12.35	€13.56 +9.8%	19.4%	€18.50	€8.50	€13.58	14
Dec ’23	€12.80	€15.61 +21.9%	47.4%	€40.00	€8.50	€11.96	14
Nov ’23	€13.12	€16.71 +27.4%	48.9%	€40.00	€8.50	€10.71	14

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.