International Consolidated Airlines Group S.A (IAG) fair value: what the stock is really worth
As of Oct 26, 2026: fair value (intrinsic value) of International Consolidated Airlines Group S.A stock €9.19, price €4.91, upside +87.3%, quality 56 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Fair value above price?Yes
Good quality?Yes
Keep an eye on it?Free in your watchlist: 5 stocks without an account, 10 with oneYes, for free
Industrials · ES · Based in United Kingdom · ISIN ES0177542018
ICBroad dataOct 26, 2026
International Consolidated Airlines Group S.A
IAG · MC
Clearly undervaluedStrong Fair Value upside, but quality is only moderate.
The stock costs 47% less than our calculation considers fair.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 26, 2026.
How to read this chart
60‑month range €1.02 – €5.66 · fair‑value band €6.44 – €12.68 · the €4.91 price screens below the €9.19 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Oct 26, 2026.
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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.
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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.
Stock analysis
International Consolidated Airlines Group S.A (IAG) currently trades at €4.91, while our model-based Fair Value estimate is €9.19, implying the stock looks roughly 46.6% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of €14.87 per share, and 21 of the 26 models we run sit above the €4.91 price.
Bear case: the Dividend Discount group reads lowest at €1.29, and 5 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: €6.44 (bear) to €12.68 (bull), the price of €4.91 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 56/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
International Consolidated Airlines Group S.A reported revenue of €32.6B in FY2025 versus €8.5B in FY2021, a compound +40.2%/yr. Reported net income was €3.3B in FY2025.
Key figures
Market cap €22.1B Large · P/E ratio 7.6 · P/S ratio 0.66 · EPS (TTM) €0.6500 · Dividend yield 2.2% · Net margin 9.2% · Return on equity 42.1% · Return on assets (EBIT) 5.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 60 out of 100 (low confidence).
What moves the price
The share trades about 13% below its 52-week high and 25% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 47% fair-value upside, at 87%, IAG screens cheaper than that median.
Fair Value models
Bear€6.44Fair Value €9.19Bull€12.68
Price €4.91 · Upside +87.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (€0.4455 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.80/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+1.6%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+12.3%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+33.1%
Start year 2020 (pandemic). Over 10 years: +3.6% a year
Revenue growth 22 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+4.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−2.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−4.7%
Dividend (yield on the price)2.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−4.7% vs −0.6%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−96% → 15%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Revenue per share shrinking 4.4%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−6.6%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (euro area: IMF forecast 2.2% a year to 2030, 2.6% from 2016 to 2025) that is about −8.6% a year for the price and +2.6% for the forecasts.
AI conclusion: Strong cash generation enables capital returns through buybacks, yet the main weakness is a limited durable moat in a competitive sector exposed to cyclical profitability swings.
Main risk: Rising fuel costs pressure operating margins on key routes despite solid demand and could outweigh the benefits of capital returns via buybacks.
IAG generates substantial cash that supports returning excess capital through share buybacks. Our models currently see it as undervalued. Yet rising fuel costs pressure operating margins even as demand remains solid on key routes. Will the capital returns strengthen the business more than higher fuel expenses erode its profitability?
Compare International Consolidated Airlines Group S.A with another stock
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Peer Groupⓘ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.Airlines · 57 stocks
Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score56 · Top 25%
Fair Value upside+87.3% · Top 25%
Profitability
Return on equity (12 months)42.1% · Top 25%
Return on assets7.7% · Top 25%
Net margin (12 months)9.2% · Top 25%
Operating margin (12 months)14.4% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)0.2% · Bottom 25%
Dividend yield (12 months)2.2% · Below median
Balance sheet
Debt / equity0.74× · Above median
Valuation Multiplesvs Airlines median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "International Consolidated Airlines Group S.A Fair Value". https://www.fairvalue-calculator.com/stock/IAG.MC
Frequently asked questions
Is International Consolidated Airlines Group S.A (IAG) overvalued or undervalued?
As of Oct 26, 2026, our model estimates a fair value of €9.19 versus a price of €4.91, about +87% upside (undervalued).
What is the fair value of IAG?
Our model-based fair value for International Consolidated Airlines Group S.A is €9.19 (as of Oct 26, 2026), built from audited fundamentals. The current price: €4.91.
What is the quality score of IAG?
International Consolidated Airlines Group S.A has a Quality Score of 56/100. 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 price target for International Consolidated Airlines Group S.A (IAG)?
Our model-based price target is the fair value of €9.19 (as of Oct 26, 2026) from 26 valuation models. Cautious scenario €6.44, optimistic scenario €12.68. It is a calculation from audited fundamentals, not an analyst target.
What is the International Consolidated Airlines Group S.A stock forecast for 2026?
Our models put fair value at €9.19, about +87% upside versus a price of €4.91 (undervalued). Cautious scenario €6.44, optimistic scenario €12.68. The calculation is refreshed regularly with new filings.
What is the revenue of International Consolidated Airlines Group S.A (IAG)?
International Consolidated Airlines Group S.A reported trailing-twelve-month revenue of about €33.4B (latest available figure, as of Oct 26, 2026).
Does International Consolidated Airlines Group S.A pay a dividend?
International Consolidated Airlines Group S.A currently shows a dividend yield of 2.20% relative to its recent price (as of Oct 26, 2026).
What growth is priced into International Consolidated Airlines Group S.A (IAG)?
For today's price to be fair in a discounted-cash-flow model, International Consolidated Airlines Group S.A would have to grow free cash flow by -6.6 % per year for five years (discount rate 11.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +33.1 % per year. As of Oct 26, 2026.
What discount rate (WACC) does the fair value of IAG use?
Our models discount International Consolidated Airlines Group S.A at 11.5 %: a base by market capitalisation (large), damped by beta 1.36, country premium for Spain. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For International Consolidated Airlines Group S.A that is -6.6 % per year a year over ten years, using the same discount rate (11.5 %) and the same formula as our fair value.
How much growth has International Consolidated Airlines Group S.A (IAG) delivered so far?
Over the past 5 years revenue at International Consolidated Airlines Group S.A grew +33.1 % a year. The price currently implies -6.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of International Consolidated Airlines Group S.A (IAG) growing?
The median revenue growth in the sector is +7.6 % a year. That is the yardstick for the growth priced into International Consolidated Airlines Group S.A (-6.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of International Consolidated Airlines Group S.A (IAG)?
The free-cash-flow yield on the price is 13.96 %: that much free cash flow International Consolidated Airlines Group S.A produces per unit of market value. When it exceeds the discount rate of our models (11.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of International Consolidated Airlines Group S.A (IAG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For International Consolidated Airlines Group S.A it is €9.19 per share (as of Oct 26, 2026), against a price of €4.91. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is International Consolidated Airlines Group S.A stock overvalued or undervalued in 2026?
As of Oct 26, 2026, IAG trades below its calculated fair value: price €4.91, fair value €9.19, a gap of about +87% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of IAG?
No. The price is what the market pays today (€4.91); the fair value is what the company's own numbers justify (€9.19). For International Consolidated Airlines Group S.A the two are €4.28 per share apart. That gap is exactly why we show both numbers side by side.
How much is International Consolidated Airlines Group S.A worth?
The market values International Consolidated Airlines Group S.A at about €22.1B (market capitalisation, as of Oct 26, 2026). Per share that is €4.91; our models calculate a fair value of €9.19 per share.
What do the bullish and bearish scenarios say about IAG?
Our models span a range for International Consolidated Airlines Group S.A: cautious scenario €6.44, base €9.19, optimistic €12.68 per share (as of Oct 26, 2026, price €4.91). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IAG?
International Consolidated Airlines Group S.A trades at a price-to-earnings ratio of 7.6 (as of Oct 26, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of €9.19 is built from several models across several years. Other multiples: PEG 2.7, P/B 2.9, P/S 0.7, EV/EBITDA 3.2.
What is the PEG ratio of IAG?
The PEG ratio of International Consolidated Airlines Group S.A is 2.73 (P/E divided by earnings growth, as of Oct 26, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of International Consolidated Airlines Group S.A (IAG)?
Balance-sheet figures for International Consolidated Airlines Group S.A (as of Oct 26, 2026): return on equity 42.1%, debt of 0.74 per unit of equity. They feed the Quality Score of 56/100, which measures business quality independently of the share price.
How far is IAG from its 52-week high?
International Consolidated Airlines Group S.A trades at €4.91, about 13% below its 52-week high of €5.66 and 25% above the low of €3.94 (as of Oct 26, 2026). Distance from the high says nothing about value: that is what the fair value of €9.19 is for.
Which stocks are comparable to International Consolidated Airlines Group S.A?
From the same area (Industrials) we also value Delta Air Lines, Inc, United Airlines Holdings, Ryanair Holdings, Southwest Airlines Co, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is International Consolidated Airlines Group S.A stock attractive at the current price?
The data as of Oct 26, 2026: price €4.91, calculated fair value €9.19 (+87%), Quality Score 56/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of IAG calculated?
We run International Consolidated Airlines Group S.A through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of €9.19, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 12.7 % above its aggregate fair value. International Consolidated Airlines Group S.A currently trades 47 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of International Consolidated Airlines Group S.A (IAG)?
The closing price on Oct 26, 2026 was €4.91. Our model-based fair value is €9.19, about +87% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with International Consolidated Airlines Group S.A right now?
The price is below even our cautious bear case (€6.44). The market is more pessimistic than our downside scenario. Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (€6.44 to €12.68) leaves room in how you read the outcome.
Where does the earnings growth of International Consolidated Airlines Group S.A (IAG) come from?
Earnings per share at International Consolidated Airlines Group S.A grew −2.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share −5.5 %, EBIT margin +4.6 %, tax rate −1.4 %, residual (interest, one-offs) +0.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of International Consolidated Airlines Group S.A
How large is the market capitalisation of International Consolidated Airlines Group S.A (IAG)?
The market capitalisation of International Consolidated Airlines Group S.A is €22.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of International Consolidated Airlines Group S.A (IAG)?
The price-to-sales ratio of International Consolidated Airlines Group S.A is 0.66 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of International Consolidated Airlines Group S.A (IAG)?
Earnings per share at International Consolidated Airlines Group S.A are €0.6500 (price ÷ EPS = P/E 7.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of International Consolidated Airlines Group S.A (IAG)?
The dividend yield of International Consolidated Airlines Group S.A is 2.2% (payout 16.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of International Consolidated Airlines Group S.A (IAG)?
The net margin of International Consolidated Airlines Group S.A is 9.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of International Consolidated Airlines Group S.A (IAG)?
The return on equity (ROE) of International Consolidated Airlines Group S.A is 42.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of International Consolidated Airlines Group S.A (IAG)?
On an EBIT basis the return on assets of International Consolidated Airlines Group S.A is 5.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of International Consolidated Airlines Group S.A (IAG)?
The operating margin of International Consolidated Airlines Group S.A is 14.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at International Consolidated Airlines Group S.A (IAG)?
Revenue at International Consolidated Airlines Group S.A is growing +0.2% versus a year earlier (3y avg +12.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at International Consolidated Airlines Group S.A (IAG)?
Earnings per share at International Consolidated Airlines Group S.A are growing −30.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does International Consolidated Airlines Group S.A (IAG) carry?
The net debt of International Consolidated Airlines Group S.A is €12.5B (fiscal year 2025, ≈ 4.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 26, 2026