Air France-KLM Valuation

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

Below Fair Value: AFP (€7.29) is trading above our estimate of fair value (€3.55)

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

Key Valuation Metric

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

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

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

AFP 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 AFP's PE Ratio compare to its peers?

The above table shows the PE ratio for AFP 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	7.1x
WIZZ Wizz Air Holdings	5.4x	16.9%	UK£1.3b
JET2 Jet2	7x	-0.3%	UK£3.5b
EZJ easyJet	10.8x	10.4%	UK£4.1b
IAG International Consolidated Airlines Group	5.3x	3.5%	UK£12.5b
AFP Air France-KLM	30.3x	33.6%	€1.9b

Price-To-Earnings vs Peers: AFP is expensive based on its Price-To-Earnings Ratio (30.3x) compared to the peer average (7.1x).

Price to Earnings Ratio vs Industry

How does AFP'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: AFP 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 AFP'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.

AFP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AFP's Price-To-Earnings Fair Ratio for valuation analysis.

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 AFP 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	€7.29	€10.64 +45.9%	42.2%	€27.50	€6.45	n/a	18
Nov ’25	€8.71	€11.15 +28.0%	39.9%	€27.50	€7.50	n/a	18
Oct ’25	€8.72	€11.07 +27.0%	40.8%	€27.50	€7.50	n/a	18
Sep ’25	€8.18	€10.83 +32.4%	42.1%	€27.50	€7.50	n/a	18
Aug ’25	n/a	€11.06 0%	42.3%	€27.50	€7.50	n/a	17
Jul ’25	n/a	€13.46 0%	41.0%	€27.50	€8.90	n/a	17
Jun ’25	n/a	€14.36 0%	38.8%	€27.50	€9.00	n/a	16
May ’25	n/a	€14.46 0%	39.1%	€27.50	€9.00	n/a	16
Apr ’25	€10.30	€15.61 +51.5%	35.5%	€27.50	€9.00	n/a	16
Mar ’25	n/a	€15.89 0%	35.2%	€27.50	€9.20	n/a	17
Feb ’25	n/a	€16.45 0%	32.3%	€27.50	€9.10	n/a	17
Jan ’25	n/a	€16.71 0%	29.1%	€26.00	€9.50	n/a	17
Dec ’24	n/a	€17.35 0%	26.3%	€26.00	€10.00	n/a	17
Nov ’24	€10.72	€17.76 +65.7%	23.6%	€26.00	€12.00	€8.71	17
Oct ’24	€11.28	€19.75 +75.1%	21.6%	€26.00	€12.00	€8.72	16
Sep ’24	€13.82	€21.03 +52.1%	19.1%	€26.00	€14.00	€8.18	16
Aug ’24	€15.35	€21.16 +37.8%	18.5%	€26.00	€14.00	n/a	16
Jul ’24	€17.31	€21.03 +21.5%	17.8%	€26.00	€14.00	n/a	16
Jun ’24	€16.80	€20.91 +24.5%	18.4%	€26.00	€14.00	n/a	16
May ’24	€14.87	€19.03 +28.0%	23.9%	€25.00	€11.00	n/a	17
Apr ’24	€15.41	€18.12 +17.6%	24.7%	€24.00	€11.00	€10.30	17
Mar ’24	€17.70	€16.72 -5.5%	23.1%	€23.00	€11.00	n/a	17
Feb ’24	€15.44	€14.77 -4.3%	20.9%	€20.00	€10.00	n/a	16
Jan ’24	n/a	€13.56 0%	19.4%	€18.50	€8.50	n/a	14
Dec ’23	€12.79	€15.61 +22.1%	47.4%	€40.00	€8.50	n/a	14
Nov ’23	€13.51	€16.71 +23.8%	48.9%	€40.00	€8.50	€10.72	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.