easyJet Valuation

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

EZJ (£5.24) is trading above our estimate of [[fair value]] (£1)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: EZJ (£5.24) is trading above our estimate of fair value (£1)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EZJ. This is calculated by dividing EZJ's market cap by their current earnings.
What is EZJ's PE Ratio?
PE Ratio	10.6x
Earnings	UK£374.00m
Market Cap	UK£3.95b

EZJ 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	6.1x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EZJ 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	20x
JET2 Jet2	8.1x	5.0%	UK£3.2b
WIZZ Wizz Air Holdings	5.7x	16.9%	UK£1.4b
IAG International Consolidated Airlines Group	5x	2.4%	UK£12.0b
IDS International Distribution Services	61.1x	45.3%	UK£3.3b
EZJ easyJet	10.6x	10.3%	UK£3.9b

Price-To-Earnings vs Peers: EZJ is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

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

4 Companies	Price / Earnings	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: EZJ is expensive based on its Price-To-Earnings Ratio (10.6x) compared to the Global Airlines industry average (10.2x).

Price to Earnings Ratio vs Fair Ratio

What is EZJ'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.

EZJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.6x
Fair PE Ratio	13.7x

Price-To-Earnings vs Fair Ratio: EZJ is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).

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 EZJ 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	UK£5.24	UK£6.60 +25.9%	13.7%	UK£8.50	UK£4.80	n/a	21
Nov ’25	UK£5.21	UK£6.63 +27.3%	13.9%	UK£8.50	UK£4.80	n/a	21
Oct ’25	UK£5.02	UK£6.54 +30.4%	14.8%	UK£8.50	UK£4.80	n/a	20
Sep ’25	UK£4.75	UK£6.52 +37.3%	15.2%	UK£8.50	UK£4.80	n/a	19
Aug ’25	UK£4.32	UK£6.61 +53.1%	13.7%	UK£8.50	UK£5.25	n/a	19
Jul ’25	UK£4.49	UK£7.04 +56.6%	10.8%	UK£8.50	UK£5.25	n/a	19
Jun ’25	UK£4.60	UK£7.06 +53.5%	10.9%	UK£8.50	UK£5.25	n/a	19
May ’25	UK£5.36	UK£7.10 +32.4%	10.8%	UK£8.50	UK£5.25	n/a	19
Apr ’25	UK£5.71	UK£6.85 +20.1%	12.9%	UK£8.50	UK£4.75	n/a	18
Mar ’25	UK£5.57	UK£6.81 +22.4%	12.7%	UK£8.50	UK£4.75	n/a	18
Feb ’25	UK£5.59	UK£6.63 +18.6%	16.6%	UK£8.75	UK£4.50	n/a	19
Jan ’25	UK£5.10	UK£6.28 +23.1%	21.1%	UK£8.75	UK£4.50	n/a	19
Dec ’24	UK£4.73	UK£6.19 +31.0%	21.4%	UK£8.75	UK£4.50	n/a	19
Nov ’24	UK£3.70	UK£6.19 +67.2%	22.1%	UK£8.75	UK£4.15	UK£5.21	19
Oct ’24	UK£4.27	UK£6.48 +51.7%	19.4%	UK£8.75	UK£4.50	UK£5.02	19
Sep ’24	UK£4.25	UK£6.52 +53.4%	19.0%	UK£8.75	UK£4.50	UK£4.75	19
Aug ’24	UK£4.52	UK£6.52 +44.4%	19.0%	UK£8.75	UK£4.50	UK£4.32	19
Jul ’24	UK£4.83	UK£6.35 +31.5%	19.2%	UK£8.75	UK£4.50	UK£4.49	19
Jun ’24	UK£4.72	UK£6.29 +33.3%	19.5%	UK£8.75	UK£4.30	UK£4.60	18
May ’24	UK£4.98	UK£5.96 +19.7%	16.1%	UK£8.25	UK£4.30	UK£5.36	16
Apr ’24	UK£5.18	UK£5.15 -0.7%	21.2%	UK£6.90	UK£3.00	UK£5.71	16
Mar ’24	UK£4.93	UK£5.01 +1.7%	24.3%	UK£6.90	UK£2.70	UK£5.57	16
Feb ’24	UK£4.83	UK£4.83 +0.07%	25.6%	UK£6.70	UK£2.70	UK£5.59	15
Jan ’24	UK£3.25	UK£4.63 +42.5%	31.8%	UK£7.00	UK£2.90	UK£5.10	14
Dec ’23	UK£3.88	UK£4.84 +24.9%	27.8%	UK£7.00	UK£2.60	UK£4.73	14
Nov ’23	UK£3.54	UK£4.84 +36.7%	32.2%	UK£7.50	UK£2.60	UK£3.70	14

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