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International Consolidated Airlines Group S.A. (INR) Fair Value & Analysis

Industrials · DE · Market cap €23.2B

What is International Consolidated Airlines Group S.A. really worth?

IC International Consolidated Airlines Group S.A. INR · XETRA
Price€5.02
Fair Value€15.54
Upside+209.6%
Quality59/100

A solid business, trading 68% below our fair value of €15.54.

As of Aug 20, 2026, the fair value of International Consolidated Airlines Group S.A. is €15.54 per share against a price of €5.02, so the fair value sits 210% above the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Solidly profitable · 10.4% net margin
Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +33.1 %/yr)
!Mixed vs. peers (7/15)
!Moderate moat 57/100
!Evidence only low, so the estimate is less certain
!Weak on future: 10 out of 100
Evidence: Low Range €9.39 – €19.52

Fair value as of: Aug 20, 2026

From 26 valuation models · updated 17 days ago

Share price −2.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (€9.39). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (€9.39 to €19.52) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

€5.68 €1.00 Fair Value €15.54 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range €1.00 – €5.68 · fair‑value band €9.39 – €19.52 · the €5.02 price screens below the €15.54 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

International Consolidated Airlines Group S.A. (INR) currently trades at €5.02, while our model-based Fair Value estimate is €15.54, implying the stock looks roughly 67.7% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of €15.90 per share, and 23 of the 26 models we run sit above the €5.02 price. Bear case: the Dividend Discount group reads lowest at €1.69, and 3 of the 26 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, International Consolidated Airlines Group S.A. generated revenue of €33.4B at a net margin of 10.4%. Revenue grew 1.9% year over year. It earns a return on equity of 48.5%. Net debt stands at €12.5B. Fundamentals as of Aug 20, 2026

Our scenario range runs from €9.39 (bear case) to €19.52 (bull case); at €5.02, the current price sits below 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 5% below its 52-week high and 44% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 45% fair-value upside, at 210%, INR screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €0.4912 per share, which is 3.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF best evidence €9.06 €15.30 €25.69 78
Growth DCF €9.07 €14.98 €24.68 76
Owner Earnings €7.70 €12.95 €21.70 74
All 26 models by family
DCF Models
FCF DCF best evidence €9.06 €15.30 €25.69 78
Owner Earnings €7.70 €12.95 €21.70 74
5Y Revenue Exit €9.36 €15.90 €24.63 71
5Y EBITDA Exit €13.39 €23.95 €36.99 74
5Y P/E Exit €10.42 €18.01 €26.48 70
10Y Revenue Exit €8.87 €14.98 €24.01 65
10Y EBITDA Exit €11.82 €20.78 €34.04 66
10Y P/E Exit €9.87 €16.50 €25.51 63
Earnings-Based
Graham-Dodd €5.06 €20.87 €28.44 64
Lynch FV €5.26 €7.51 €9.76 61
PEG = 1.0 €5.26 €7.51 €9.76 57
EPV €8.32 €9.63 €10.79 74
Dividend Discount
Gordon GGM €0.9600 €2.00 €3.17 66
DDM Multi-Stage €0.9600 €1.69 €2.10 66
Multiples
P/E Multiple €11.71 €15.62 €19.52 63
P/S Multiple €9.48 €12.64 €15.80 58
P/B Multiple €5.81 €7.75 €9.68 55
EV/EBIT €14.29 €18.92 €23.55 66
EV/EBITDA €16.99 €22.52 €28.05 67
EV/Revenue €9.72 €13.71 €17.71 54
Asset-Based
NCAV (Graham) €0.8600 €1.15 €1.72 54
Growth DCF
Growth DCF €9.07 €14.98 €24.68 76
Rev-Margin DCF €9.36 €15.76 €23.73 72
Economic Profit
Residual Income €6.60 €11.18 €212.99 64
ROIC Compounder €8.83 €10.86 €13.10 72
Growth Earnings
Growth-Adj P/E €9.04 €12.92 €16.79 67

Widest divergence: DCF Models (€15.90) versus Asset-Based (€1.15). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 7.0
P/S ratio 0.70 P/E × margin
EPS (TTM) €0.7200 price ÷ EPS = P/E 7.0
Dividend yield 2.1% payout 14.5%
Net margin 10.1% FY2025
Return on equity 48.5% TTM
More key figures
Profitability
Return on assets (EBIT) 5.1% avg 5y
Operating margin 5.4% TTM
Growth
Revenue (TTM) €33.4B TTM
Revenue growth (YoY) +1.9% 3y avg +12.3%
EPS growth (YoY) +78.4%
Balance sheet & cash flow
Free cash flow €3.1B FY2025
Net debt €12.5B FY2025 · ≈ 4.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 57 · Market factors (momentum, volatility) 55

Profitability 57
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 60
Earnings quality: real cash, not paper profit
Fin. Strength 36
Balance sheet, leverage, solvency risk
Investment 46
Disciplined investing over empire-building
Low Volatility 46
Calm price path (market factor)
Momentum 60
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 100
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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.

Full company description

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.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 92/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€32.6B
Latest YoY
+1.6%
Avg. revenue 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.
+12.3%
Avg. revenue 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.
+33.1%
Avg. revenue growth/yr (22Y) 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.
+4.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−2.6% · in EUR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−4.7%
Dividend yield2.1%
Trend 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.5Y −4.7% vs 10Y −0.6%, flattening
Operating margin (EBIT) 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.−55.6% (2020) → 14.7% (2025) · rising
Worst earnings drop295% (2012) (loss year, drop beyond 100%) · in EUR
⚠ 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.
Revenue +40.2%/yr
FY21 €8.5B
FY22 €23.1B
FY23 €29.5B
FY24 €32.1B
FY25 €32.6B
Net income
FY21 −€2.9B
FY22 €431M
FY23 €2.7B
FY24 €2.7B
FY25 €3.3B
Character of growth · EPS growth decomposed (2014-2025) −2.1 % p.a.
Revenue per share −5.5 %

of which total revenue +4.1 % · buybacks/dilution −9.2 %

EBIT margin +3.5 %
Tax rate −1.4 %
Residual (interest, one-offs) +1.5 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "International Consolidated Airlines Group S.A. Fair Value". https://www.fairvalue-calculator.com/stock/INR.XETRA

Peer Group

Airlines · 57 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 59 · Top 25%
Fair Value upside +102% · Top 25%
Return on equity (TTM) 49% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 5% · Below median
Revenue growth 2% · Bottom 25%
Dividend yield (TTM) 2.1% · Below median
Debt / equity 0.74× · Higher than median

Valuation Multiples vs Airlines median · lower = cheaper

P/E (TTM) 7.0× · Cheaper than 75% of peers
P/B 3.54× · Pricier than 75% of peers
P/S (TTM) 0.81× · Pricier than median
P/FCF 8.7× · Pricier than median
EV/EBITDA 3.8× · Cheaper than median
PEG 2.63× · Pricier than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 57
FUTURE10 · sector 51
PAST100 · sector 48
HEALTH63 · sector 69
DIVIDEND42 · sector 48

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

Similar stocks

10 more Airlines stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
Delta Air Lines, Inc DAL $80.07 $115.82 +45%
United Airlines Holdings UAL $110.60 $175.62 +59%
Ryanair Holdings RYA €25.47 €41.26 +62%
Southwest Airlines Co LUV $38.73 $14.76 −62%
InterGlobe Aviation Limited INDIGO ₹5,166 ₹3,073 −41%
Singapore Airlines Limited C6L 7.09 SGD 7.89 SGD +11%
Air China Limited 601111 ¥5.94 ¥7.16 +21%
LATAM Airlines Group LTM $52.50 $106.79 +103%
China Southern Airlines Company 600029 ¥5.08 ¥1.28 −75%
Deutsche Lufthansa AG LHA €7.99 €18.94 +137%

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Frequently asked questions

Is International Consolidated Airlines Group S.A. (INR) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of €15.54 versus a price of €5.02, about +210% upside (undervalued).
What is the fair value of INR?
Our model-based fair value for International Consolidated Airlines Group S.A. is €15.54 (as of Aug 20, 2026), built from audited fundamentals. The current price: €5.02.
What is the quality score of INR?
International Consolidated Airlines Group S.A. has a Quality Score of 59/100. 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. (INR)?
Our model-based price target is the fair value of €15.54 (as of Aug 20, 2026) from 26 valuation models. Cautious scenario €9.39, optimistic scenario €19.52. 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 €15.54, about +210% upside versus a price of €5.02 (undervalued). Cautious scenario €9.39, optimistic scenario €19.52. The calculation is refreshed regularly with new filings.
What is the revenue of International Consolidated Airlines Group S.A. (INR)?
International Consolidated Airlines Group S.A. reported trailing-twelve-month revenue of about €33.4B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of INR?
The net profit margin of International Consolidated Airlines Group S.A. is about 10.4%, meaning it keeps roughly 10.4% of revenue as net income. Based on the latest reported figures.
Does International Consolidated Airlines Group S.A. pay a dividend?
International Consolidated Airlines Group S.A. currently shows a dividend yield of about 2.08% relative to its recent price (as of Aug 20, 2026).
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