International Consolidated Airlines (IAG.L)
Industrials · LSE · UK
Fundamentals
Valuation and ratings
International Consolidated Airlines trades at £4.49, which is 131% below the £10.36 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 35 out of 100, which is little in the way of a moat. 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 7.6 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 International Consolidated Airlines
International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the North Atlantic, Latin America, the Caribbean, Europe, Africa, the Middle East, South Asia, the Asia Pacific, and internationally. It operates through British Airways, Iberia, Vueling, Aer Lingus, and IAG Loyalty segments. The company manufactures, repairs, maintains, overhauls, retrofits, repurposes, upgrades aircraft, and aircraft parts and equipment. In addition, it provides airline operations, insurance, aircraft leasing, aircraft maintenance, tour operation, air freight operations, call center, ground handling, trustee, retail, IT, finance, flight procurement, storage, aircraft technical assistance, human resources support, and airport infrastructure development services; and manages airline loyalty reward currency. The company was incorporated in 2009 and is headquartered in Harmondsworth, the United Kingdom.
IAG.L passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is International Consolidated Airlines (IAG.L) undervalued?
Against our discounted cash flow estimate of £10.36, IAG.L at £4.49 is 131% 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 IAG.L's P/E ratio?
IAG.L trades at 7.6 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.
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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.