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Controladora Vuela Compañía de Aviación, S.A. (VLRS) Fair Value & Analysis

Industrials · US · Market cap $1.1B

CV Controladora Vuela Compañía de Aviación, S.A. logo Controladora Vuela Compañía de Aviación, S.A. VLRS · US
Price$8.17
Fair Value$13.07
Upside+60.0%
Quality41/100
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Mixed Growth
Loss-making · -4.0% net margin
High debt · generates free cash flow
Trails peers (5/13)
Narrow moat 12/100
Evidence: Medium Range $8.29 – $17.84 Share as image

Fair value as of: Jul 25, 2026

From 14 valuation models · updated 16 days ago

Fair value updated Jul 25, 2026, revised from $8.63 to $13.07 (+51.5%) since Jun 25, 2026. Share price −3.4% over the past month.

Below-average quality, screening 60% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • A fairly wide model range ($8.29 to $17.84) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$22.84 $3.59 Fair Value $13.07 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

60‑month range $3.59 – $22.84 · fair‑value band $8.29 – $17.84 · the $8.17 price screens below the $13.07 fair value. Dashed = 300-day average. As of Jul 25, 2026.

Full chart & analysis →

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Analysis

Controladora Vuela Compañía de Aviación, S.A. (VLRS) currently trades at $8.17, while our model-based Fair Value estimate is $13.07, implying the stock looks roughly 60.0% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Controladora Vuela Compañía de Aviación, S.A. generated revenue of $3.1B at a net margin of -4.0%. Revenue grew 13.6% year over year. It earns a return on equity of -47.6%. Net debt stands at $3.1B. Fundamentals as of Jul 25, 2026

Our scenario range runs from $8.29 (bear case) to $17.84 (bull case); at $8.17, 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 24% below its 52-week high and 88% 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 60%, VLRS screens cheaper 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 BearBaseBull Evidence
Highest evidence
Growth DCF $85.99 $146.65 $241.96 80
Rev-Margin DCF $39.76 $54.67 $86.91 74
ROIC Compounder $8.92 $9.77 $10.47 72
All 14 models by family
DCF Models
FCF DCF $91.61 $132.48 $254.62 38
Owner Earnings $29.05 $57.28 $109.67 31
5Y Revenue Exit $37.07 $47.97 $69.64 39
5Y EBITDA Exit $75.57 $125.75 $223.89 41
10Y Revenue Exit $55.37 $85.90 $95.63 36
10Y EBITDA Exit $81.36 $161.52 $296.36 37
Earnings-Based
EPV $8.92 $9.77 $10.47 59
Multiples
EV/EBIT $13.70 $17.36 $21.02 53
EV/EBITDA $66.89 $88.28 $109.67 54
EV/Revenue $10.56 $13.92 $17.27 43
Asset-Based
NCAV (Graham) $1.14 $1.53 $2.29 50
Growth DCF
Growth DCF $85.99 $146.65 $241.96 80
Rev-Margin DCF $39.76 $54.67 $86.91 74
Economic Profit
ROIC Compounder $8.92 $9.77 $10.47 72

Widest divergence: DCF Models ($85.90) versus Asset-Based ($1.53). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $3.1B
Revenue growth (YoY) +13.6%
Net margin -4.0%
Return on equity -47.6%
Free cash flow $750M FY2025
Operating margin -2.8%
More key figures
EPS (TTM) $-2.60
EPS growth (YoY) -91.1%
Net debt $3.1B FY2025

Figures from reported company fundamentals · as of Jul 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 42 · Market factors (momentum, volatility) 55

Profitability 11
Margins and returns on capital today
Quality Growth 12
Are margins and returns improving?
Cashflow 74
Earnings quality: real cash, not paper profit
Fin. Strength 9
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 42
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 68
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.

About the company

Controladora Vuela Compañía de Aviación, S.A.B. de C.V., through its subsidiary, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V., provides air transportation services for passengers, cargo, and mail in Mexico and internationally.

Full company description

Controladora Vuela Compañía de Aviación, S.A.B. de C.V., through its subsidiary, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V., provides air transportation services for passengers, cargo, and mail in Mexico and internationally. The company operates approximately 550 daily flights on routes connecting 44 cities in Mexico, 22 cities in the United States, 4 cities in Central America, and 2 cities in South America. It also offers travel agency, share administration trust, pre-delivery payments financing, aircraft administration trust, and loyalty program, as well as specialized and aeronautical technical services. The company leases 151 aircraft and 14 spare engines. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. was incorporated in 2005 and is headquartered in Mexico City, Mexico.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Controladora Vuela Compañía de Aviación, S.A. reported revenue of $3.0B in FY2025 versus $2.2B in FY2021, a compound +8.4%/yr. Reported net income was −$104M in FY2025.

Growth Quality 61/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$3.0B
Latest YoY
−3.3%
Avg. growth/yr (3Y)
+2.2%
Avg. growth/yr (5Y)
+123.8%
Avg. growth/yr (15Y)
+32.5%
Revenue +8.4%/yr
FY21 $2.2B
FY22 $2.8B
FY23 $3.3B
FY24 $3.1B
FY25 $3.0B
Net income
FY21 $106M
FY22 −$80.2M
FY23 $7.8M
FY24 $126M
FY25 −$104M

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Cite: Fair Value Calculator (2026). "Controladora Vuela Compañía de Aviación, S.A. Fair Value". https://www.fairvalue-calculator.com/stock/VLRS

Peer Group

Airlines · 60 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 41 · Below median
Fair Value upside +60% · Top 25%
Return on assets 1% · Below median
Net margin (TTM) -4% · Bottom 25%
Operating margin (TTM) -3% · Below median
Revenue growth 14% · Above median
Debt / equity 1.68× · Higher than 75% of peers

Valuation Multiples vs Airlines median · lower = cheaper

P/B 4.03× · Pricier than 75% of peers
P/S (TTM) 0.34× · Cheaper than median
P/FCF 1.4× · Cheaper than median
EV/EBITDA 2.4× · Cheaper than 75% of peers
PEG 13.48× · Pricier 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 100 · sector 37
FUTURE 68 · sector 46
PAST 0 · sector 46
HEALTH 16 · sector 72
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 25, 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 Controladora Vuela Compañía de Aviación, S.A. (VLRS) overvalued or undervalued?
As of Jul 25, 2026, our model estimates a fair value of $13.07 versus a price of $8.17, about +60% (undervalued).
What is the fair value of VLRS?
Our model-based fair value for Controladora Vuela Compañía de Aviación, S.A. is $13.07 (as of Jul 25, 2026), built from audited fundamentals. The current price is $8.17.
What is the quality score of VLRS?
Controladora Vuela Compañía de Aviación, S.A. has a Quality Score of 41/100. 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 Controladora Vuela Compañía de Aviación, S.A. (VLRS)?
Controladora Vuela Compañía de Aviación, S.A. reported trailing-twelve-month revenue of about $3.1B (latest available figure, as of Jul 25, 2026).
What is the net profit margin of VLRS?
The net profit margin of Controladora Vuela Compañía de Aviación, S.A. is about -4.0%, meaning it is currently running at a net loss. 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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