easyJet plc (ESYJY)

Industrials · PNK · US

USD9.14+33.43% today

Fundamentals

Market capUSD6.79B
P/E ratio12.8
Dividend yield1.93%
Revenue growth (YoY)+11.9%
Profit margin3.9%
Return on equity13.1%
52-week rangeUSD4.57 to USD9.17

Valuation and ratings

DCF fair valueUSD18.71
Upside to fair value+104.7%
Analyst target (mean)USD6.33
Analyst rangeUSD6.33 to USD6.33
Analysts covering1
Consensus viewnone
Moat score46/100
Overall rating63/100, Buy

easyJet plc trades at USD9.14, which is 105% below the USD18.71 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.

Our moat model scores it 46 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 12.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About easyJet plc

easyJet plc operates as a low-cost airline carrier in Europe. The company engages in the development of building projects; financing and insurance business; and tour operator activities, as well as provides holiday packages. It also offers heavy base maintenance and air transport services. easyJet plc was founded in 1995 and is headquartered in Luton, the United Kingdom.

Industry: AirlinesEmployees: 19,224HQ: United Kingdom

ESYJY passes 4 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Common questions

Is easyJet plc (ESYJY) undervalued?

Against our discounted cash flow estimate of USD18.71, ESYJY at USD9.14 is 105% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is ESYJY's P/E ratio?

ESYJY trades at 12.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

The full research page for ESYJY, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.