LATAM Airlines Group Trades at Attractive 8.88 P/E with 0.40 PEG
LATAM Airlines Group holds a Zacks Rank #2 (Buy) with a Value grade of A and trades at a forward P/E of 8.88 versus its industry’s 9.38 and a PEG ratio of 0.40 compared to 0.45. Its P/B stands at 15.77 versus an industry average of 3.17.
1. Zacks Rank and Value Grade
LATAM Airlines Group is assigned a Zacks Rank #2 (Buy) and a Value score of A within the Transportation - Airline industry, indicating a strong buy recommendation for value-oriented investors.
2. Forward P/E and PEG Ratio
The stock trades at a forward P/E of 8.88, below the industry's average of 9.38, and posts a PEG ratio of 0.40 versus the sector's 0.45, underscoring potential undervaluation relative to earnings growth prospects.
3. Historical Valuation Ranges
Over the past 12 months, LTM's forward P/E has ranged between 6.73 and 9.75, with a median of 8.47, while its PEG ratio fluctuated from 0.37 up to 0.85, median 0.57, highlighting current valuations near historical lows in growth context.
4. Price-to-Book Premium
LATAM’s P/B ratio stands at 15.77, significantly above the industry average of 3.17; over the last 52 weeks, P/B varied between 8.79 and 17.18, with a median of 12.18, suggesting a premium valuation on book value metrics.