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Air France-KLM SA (AF) Fair Value & Analysis

Industrials · FR · Market cap €3.5B

AF Air France-KLM SA AF · PA
Price€12.16
Fair Value€10.36
Upside-14.8%
Quality33/100
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Expensive Growth
Thin margins · 4.8% net margin
Negative equity (buybacks among others) · generates free cash flow
Ranks above peers (8/13)
Narrow moat 44/100
Evidence: Medium Range €8.24 – €15.88 Share as image

Fair value as of: Jul 13, 2026

From 22 valuation models · updated 28 days ago

Fair value updated Jul 13, 2026, revised from €80.81 to €10.36 (−87.2%) since Jun 24, 2026. Share price −8.8% over the past month.

Below-average quality, and screening another 15% overvalued on our models.

What matters now

  • A fairly wide model range (€8.24 to €15.88) leaves room in how you read the outcome.
  • Our model range runs from €8.24 (bear) to €15.88 (bull), base €10.36. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 33/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

€23.91 €7.05 Fair Value €10.36 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range €7.05 – €23.91 · fair‑value band €8.24 – €15.88 · the €12.16 price screens above the €10.36 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Air France-KLM SA (AF) currently trades at €12.16, while our model-based Fair Value estimate is €10.36, implying the stock looks roughly 14.8% overvalued today. The Quality Score stands at 33/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Air France-KLM SA generated revenue of €33.3B at a net margin of 4.8%. Revenue grew 4.4% year over year. It earns a return on equity of 93.3%. Net debt stands at €17.5B. Fundamentals as of Jul 13, 2026

Our scenario range runs from €8.24 (bear case) to €15.88 (bull case); at €12.16, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 20% below its 52-week high and 58% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 40% fair-value upside, at -15%, AF screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF €9.27 €11.19 €13.76 80
ROIC Compounder €68.05 €78.07 €86.71 72
Gordon GGM €0.0700 €0.1300 €0.2000 70
All 22 models by family
DCF Models
FCF DCF €9.18 €11.31 €14.31 38
Owner Earnings €20.20 €27.46 €37.70 31
5Y Revenue Exit €48.29 €82.93 €127.30 39
5Y EBITDA Exit €115.30 €204.97 €308.76 41
5Y P/E Exit €59.39 €103.16 €148.33 38
10Y Revenue Exit €31.26 €58.90 €95.96 36
10Y EBITDA Exit €74.59 €140.55 €228.02 37
10Y P/E Exit €40.11 €72.43 €111.26 35
Earnings-Based
Graham-Dodd €41.28 €111.70 €146.33 54
Lynch FV €21.92 €31.32 €40.72 50
PEG = 1.0 €21.92 €31.32 €40.72 46
EPV €68.05 €78.07 €86.71 59
Dividend Discount
Gordon GGM €0.0700 €0.1300 €0.2000 70
DDM Multi-Stage €0.0700 €0.1000 €0.1400 61
Multiples
P/E Multiple €95.60 €127.47 €159.34 63
P/S Multiple €77.39 €103.19 €128.99 58
EV/EBIT €103.47 €136.43 €169.38 53
EV/EBITDA €200.88 €266.30 €331.72 54
EV/Revenue €75.17 €105.41 €135.65 43
Growth DCF
Growth DCF €9.27 €11.19 €13.76 80
Economic Profit
ROIC Compounder €68.05 €78.07 €86.71 72
Growth Earnings
Growth-Adj P/E €75.48 €107.83 €140.18 68

Widest divergence: Multiples (€127.47) versus Dividend Discount (€0.1000). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) €33.3B
Revenue growth (YoY) +4.4%
Net margin 4.8%
Return on equity 93.3%
Free cash flow €115M FY2025
P/E ratio 2.4
More key figures
Operating margin -0.3%
EPS (TTM) €5.51
EPS growth (YoY) +6.1%
Net debt €17.5B FY2025

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 33/100

Of which business quality 34 · Market factors (momentum, volatility) 40

Profitability 36
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 21
Balance sheet, leverage, solvency risk
Investment 51
Disciplined investing over empire-building
Low Volatility 28
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 40
Distance to the 52-week high (market factor)
Net Issuance 6
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Air France-KLM SA, together with its subsidiaries, provides passenger and cargo transportation services. The company operates through Network, Maintenance, Transavia, and Other segments. It also offers airframe and engine maintenance, and component support services, including electronic, mechanical, pneumatic, hydraulic, and other services.

Full company description

Air France-KLM SA, together with its subsidiaries, provides passenger and cargo transportation services. The company operates through Network, Maintenance, Transavia, and Other segments. It also offers airframe and engine maintenance, and component support services, including electronic, mechanical, pneumatic, hydraulic, and other services. The company provides its services under the Air France, KLM, and Transavia brand names. It operates in France, rest of Europe, North Africa, the Caribbean, West Indies, French Guyana, Indian Ocean, Africa, the Middle East, North America, Mexico, French Polynesia, South America, Asia, and New Caledonia. Air France-KLM SA was founded in 1919 and is headquartered in Paris, France.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Air France-KLM SA reported revenue of €33.0B in FY2025 versus €14.3B in FY2021, a compound +23.2%/yr. Reported net income was €1.6B in FY2025.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
€33.0B
Latest YoY
+4.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+24.4%
Avg. growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.3%
Revenue +23.2%/yr
FY21 €14.3B
FY22 €26.4B
FY23 €30.0B
FY24 €31.5B
FY25 €33.0B
Net income
FY21 −€3.3B
FY22 €728M
FY23 €934M
FY24 €317M
FY25 €1.6B
Character of growth · EPS growth decomposed (2015-2025) −7.0 % p.a.
Revenue per share −12.5 pp

of which total revenue +2.5 pp · buybacks/dilution −15.0 pp

EBIT margin +2.7 pp
Tax rate +2.3 pp
Residual (interest, one-offs) +0.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

AF screens 15% overvalued. Compare with Delta Air Lines, Inc →

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Cite: Fair Value Calculator (2026). "Air France-KLM SA Fair Value". https://www.fairvalue-calculator.com/stock/AF

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Airlines · 58 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 33 · Bottom 25%
Fair Value upside −15% · Below median
Return on equity (TTM) 93% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) -0% · Below median
Revenue growth 4% · Bottom 25%

Valuation Multiples vs Airlines median · lower = cheaper

P/E (TTM) 2.4× · Cheaper than 75% of peers
P/S (TTM) 0.12× · Cheaper than 75% of peers
P/FCF 35.2× · Pricier than 75% of peers
EV/EBITDA 0.7× · Cheaper than 75% of peers
PEG 0.14× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 14 · sector 38
FUTURE 22 · sector 46
PAST 100 · sector 47
HEALTH 100 · sector 71
DIVIDEND 0 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Airlines stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
Delta Air Lines, Inc DAL $84.17 $118.24 +40%
United Airlines Holdings UAL $120.97 $175.62 +45%
Ryanair Holdings RYA €25.47 €41.26 +62%
Southwest Airlines Co LUV $47.56 $14.76 -69%
InterGlobe Aviation Limited INDIGO ₹5,249 ₹3,704 -29%
Singapore Airlines Limited C6L 7.60 SGD 7.89 SGD +4%
Air China Limited 601111 ¥5.97 ¥7.16 +20%
LATAM Airlines Group LTM $54.87 $106.79 +95%
Deutsche Lufthansa AG 1LHA €8.57 €15.42 +80%
China Southern Airlines Company 600029 ¥4.99 ¥1.28 -74%

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Frequently asked questions

Is Air France-KLM SA (AF) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of €10.36 versus a price of €12.16, about −15% (overvalued).
What is the fair value of AF?
Our model-based fair value for Air France-KLM SA is €10.36 (as of Jul 13, 2026), built from audited fundamentals. The current price is €12.16.
What is the quality score of AF?
Air France-KLM SA has a Quality Score of 33/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Air France-KLM SA (AF)?
Air France-KLM SA reported trailing-twelve-month revenue of about €33.3B (latest available figure, as of Jul 13, 2026).
What is the net profit margin of AF?
The net profit margin of Air France-KLM SA is about 4.8%, meaning it keeps roughly 4.8% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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