easyJet plc

LSE:EZJ Stock Report

Mkt Cap: UK£3.8b

We’ve recently updated our valuation analysis.

easyJet Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

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/Revenue0.8x
Enterprise Value/EBITDA17.6x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for EZJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.6x
JET2 Jet2
0.6x7.9%UK£2.6b
IAG International Consolidated Airlines Group
0.5x7.7%UK£8.5b
WIZZ Wizz Air Holdings
0.9x21.5%UK£2.8b
ESKN Esken
0.5x11.4%UK£58.1m
EZJ easyJet
0.7x10.0%UK£3.8b

Price-To-Sales vs Peers: EZJ is expensive based on its Price-To-Sales Ratio (0.7x) compared to the peer average (0.6x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.1%
 n/an/an/a

Price-To-Sales vs Industry: EZJ is good value based on its Price-To-Sales Ratio (0.7x) compared to the Global Airlines industry average (0.9x)

Price to Sales Ratio vs Fair Ratio

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

EZJ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: EZJ is expensive based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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 (£5.07) is trading above our estimate of fair value (£0.22)

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

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.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£5.07
UK£4.79
-5.5%
26.7%UK£6.70UK£2.70n/a15
Jan ’24UK£3.25
UK£4.63
+42.5%
31.8%UK£7.00UK£2.90n/a14
Dec ’23UK£3.88
UK£4.84
+24.9%
27.8%UK£7.00UK£2.60n/a14
Nov ’23UK£3.54
UK£4.84
+36.7%
32.2%UK£7.50UK£2.60n/a14
Oct ’23UK£2.96
UK£5.74
+93.5%
30.2%UK£9.15UK£3.00n/a15
Sep ’23UK£3.48
UK£6.00
+72.6%
24.7%UK£9.15UK£3.10n/a17
Aug ’23UK£3.95
UK£6.07
+53.7%
24.1%UK£9.15UK£3.10n/a18
Jul ’23UK£3.77
UK£6.64
+76.2%
19.8%UK£9.15UK£3.60n/a18
Jun ’23UK£5.07
UK£7.37
+45.3%
14.1%UK£9.15UK£4.75n/a19
May ’23UK£5.61
UK£7.46
+32.9%
14.9%UK£9.30UK£4.50n/a20
Apr ’23UK£5.55
UK£7.50
+35.1%
14.9%UK£9.30UK£4.25n/a20
Mar ’23UK£5.46
UK£7.75
+42.0%
15.6%UK£9.50UK£4.25n/a20
Feb ’23UK£6.38
UK£7.68
+20.5%
14.8%UK£9.50UK£4.25n/a21
Jan ’23UK£5.56
UK£7.50
+34.9%
15.8%UK£9.00UK£4.50UK£3.2520
Dec ’22UK£5.18
UK£7.49
+44.5%
15.6%UK£9.00UK£4.50UK£3.8820
Nov ’22UK£6.26
UK£7.74
+23.8%
18.0%UK£11.00UK£4.50UK£3.5420
Oct ’22UK£7.04
UK£8.51
+20.9%
20.3%UK£13.40UK£5.95UK£2.9619
Sep ’22UK£7.97
UK£10.81
+35.7%
15.9%UK£13.90UK£6.50UK£3.4821
Aug ’22UK£8.46
UK£10.78
+27.3%
15.9%UK£13.90UK£6.50UK£3.9521
Jul ’22UK£9.18
UK£10.79
+17.5%
15.3%UK£13.40UK£6.50UK£3.7722
Jun ’22UK£10.07
UK£10.44
+3.6%
18.4%UK£13.40UK£6.00UK£5.0722
May ’22UK£10.36
UK£10.24
-1.1%
18.9%UK£13.40UK£6.00UK£5.6122
Apr ’22UK£10.09
UK£10.02
-0.7%
20.9%UK£13.40UK£6.00UK£5.5522
Mar ’22UK£10.02
UK£9.34
-6.7%
17.0%UK£12.00UK£6.00UK£5.4622
Feb ’22UK£7.50
UK£9.13
+21.8%
16.8%UK£12.00UK£6.00UK£6.3822
Jan ’22UK£8.30
UK£9.06
+9.1%
21.4%UK£12.00UK£4.80UK£5.5622

Analyst Forecast: Target price is lower than the current share price.

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