Jet2 Valuation

Is JET2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 JET2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JET2 (£16.24) is trading below our estimate of fair value (£22.32)

Significantly Below Fair Value: JET2 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for JET2?

Key metric: As JET2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for JET2. This is calculated by dividing JET2's market cap by their current earnings.
What is JET2's PE Ratio?
PE Ratio7x
EarningsUK£496.10m
Market CapUK£3.51b

Price to Earnings Ratio vs Peers

How does JET2's PE Ratio compare to its peers?

The above table shows the PE ratio for JET2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.7x
EZJ easyJet
9.6x9.5%UK£4.3b
WIZZ Wizz Air Holdings
5.8x17.3%UK£1.4b
IAG International Consolidated Airlines Group
5.9x3.6%UK£13.8b
IDS International Distribution Services
13.6x28.9%UK£3.4b
JET2 Jet2
7x-0.3%UK£3.5b

Price-To-Earnings vs Peers: JET2 is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (8.7x).


Price to Earnings Ratio vs Industry

How does JET2's PE Ratio compare vs other companies in the Global Airlines Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
JET2 7.0xIndustry Avg. 9.6xNo. of Companies8PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JET2 is good value based on its Price-To-Earnings Ratio (7x) compared to the Global Airlines industry average (9.6x).


Price to Earnings Ratio vs Fair Ratio

What is JET2'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.

JET2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ratio11.2x

Price-To-Earnings vs Fair Ratio: JET2 is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).


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 JET2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£16.24
UK£19.96
+22.9%
9.8%UK£23.85UK£17.00n/a13
Nov ’25UK£14.58
UK£19.12
+31.1%
8.7%UK£22.40UK£17.00n/a13
Oct ’25UK£13.61
UK£19.20
+41.1%
8.9%UK£22.40UK£17.00n/a13
Sep ’25UK£14.75
UK£19.20
+30.2%
8.9%UK£22.40UK£17.00n/a13
Aug ’25UK£13.90
UK£19.11
+37.5%
8.8%UK£22.40UK£17.00n/a14
Jul ’25UK£13.04
UK£18.84
+44.5%
9.5%UK£22.40UK£16.70n/a14
Jun ’25UK£13.28
UK£19.14
+44.1%
8.8%UK£22.40UK£16.70n/a14
May ’25UK£14.21
UK£19.14
+34.7%
9.0%UK£22.60UK£16.50n/a14
Apr ’25UK£14.42
UK£19.02
+31.9%
9.2%UK£22.60UK£16.50n/a12
Mar ’25UK£14.26
UK£18.99
+33.2%
9.2%UK£22.60UK£16.50n/a12
Feb ’25UK£13.17
UK£18.78
+42.6%
8.7%UK£22.00UK£16.50n/a12
Jan ’25UK£12.49
UK£18.31
+46.6%
11.4%UK£22.00UK£15.00n/a12
Dec ’24UK£12.24
UK£18.37
+50.1%
11.0%UK£22.00UK£15.00UK£15.7313
Nov ’24UK£10.17
UK£18.58
+82.6%
10.0%UK£22.00UK£15.50UK£14.5812
Oct ’24UK£10.83
UK£18.56
+71.4%
11.0%UK£22.00UK£14.80UK£13.6111
Sep ’24UK£10.60
UK£18.39
+73.5%
10.9%UK£22.00UK£14.80UK£14.7510
Aug ’24UK£11.38
UK£18.50
+62.6%
9.9%UK£22.00UK£15.80UK£13.9010
Jul ’24UK£12.46
UK£17.92
+43.8%
9.6%UK£20.40UK£15.00UK£13.0410
Jun ’24UK£12.25
UK£17.49
+42.7%
10.2%UK£20.40UK£15.00UK£13.2811
May ’24UK£12.26
UK£17.42
+42.1%
10.7%UK£20.40UK£15.00UK£14.2111
Apr ’24UK£13.13
UK£15.96
+21.6%
14.3%UK£19.80UK£11.05UK£14.4211
Mar ’24UK£13.14
UK£15.21
+15.8%
15.2%UK£19.70UK£11.05UK£14.2611
Feb ’24UK£12.31
UK£14.69
+19.4%
16.2%UK£19.70UK£11.05UK£13.1711
Jan ’24UK£9.58
UK£14.16
+47.8%
15.7%UK£18.80UK£11.05UK£12.4911
Dec ’23UK£10.03
UK£14.16
+41.3%
15.7%UK£18.80UK£11.05UK£12.2411

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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