Air France-KLM AF.PA
FranceIndustrials · AirlinesEuronext París · EUR
12.68 EUR (+13.3%)
19 analysts
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Air France-KLM is a European airline group operating passenger and cargo flights globally, with a network connecting Europe with the Americas, Africa, the Middle East, and Asia, generating revenue from ticket sales, cargo services, and loyalty programs.
Listed on Euronext París · Symbol AF.PA · EPA: AF · Currency EUR
Key points
from its scores- ✓Attractive valuation8.0
- ✕Little or no dividend1.5
- ✕Weak growth3.2
- ✕Fragile balance sheet3.3
AI analysis
bottom line, main risk, context and newsThe valuation looks attractive on paper, but the combination of high debt, a thin margin, and falling earnings makes the risk outweigh the potential for near-term re-rating.
Air France-KLM trades at a P/E of 2.87 and an EV/EBITDA of 3.87, reflecting an extreme discount, but its financial health is fragile: net debt/EBITDA of 2.52, a current ratio of 0.67, and an operating margin of 5.43% that leaves little room for higher fuel costs. Earnings growth is negative (-73.20%) and free cash flow conversion is negative, suggesting the business is deteriorating and that the low multiple is not a bargain but a reflection of risks.
The biggest risk is the combination of a thin operating margin (5.43%) with net debt/EBITDA of 2.52 and negative free cash flow conversion, leaving the company highly exposed to any spike in fuel prices or a tightening of interest rates.
Context and risks
Air France-KLM operates a fleet and route network that depend critically on jet fuel. The context of rising interest rates and a stronger dollar makes fuel and debt service more expensive, but the company already trades at a P/E of 2.87 and an EV/EBITDA of 3.87, suggesting the market is pricing in an adverse scenario. The main risk is the volatility of oil prices and its direct impact on the 5.43% operating margin, which is thin and vulnerable to any fuel price increase.
Is Air France-KLM stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 81% below the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 2.9 | 25.4 | −89% |
| EV / EBITDA | 3.9 | 14.5 | −73% |
| Price / sales | 0.1 | 2.1 | −96% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.0 out of 10 (median for Industrials: 5.0).
Average analyst target: 12.68 EUR, +13.3% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 3.3 (sector 6.4), Growth 3.2 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 2.9
- Forward P/E
- 2.4
- EV / EBITDA
- 3.9
- Price / book
- −4.8
- Price / sales
- 0.1
- PEG
- 0.14
- Market cap
- 2.9B EUR
- Enterprise value
- 14.5B EUR
Profitability
- ROE
- 63.1%
- ROA
- 3.3%
- Gross margin
- 21.1%
- Operating margin
- 5.4%
- Net margin
- 3.4%
- Free cash flow
- −642.5M EUR
- FCF yield
- −21.9%
- Cash conversion
- −17%
Solvency
- Total debt
- 15.4B EUR
- Net debt
- 9.4B EUR
- Cash
- 6.0B EUR
- EBITDA
- 3.7B EUR
- Net debt / EBITDA
- 2.52
- Debt / equity
- 551.63
- Current ratio
- 0.67
- Quick ratio
- 0.49
Growth
- Revenue growth
- +9.9%
- Earnings growth
- −73.2%
- EPS (TTM)
- 3.90 EUR
- EPS (forward)
- 4.76 EUR
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.33
- Analyst consensus
- Hold (19)
- Target price
- 12.68 EUR
- 52-week range
- 8.37 – 14.43
Recent news
All AF.PA news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Air France-KLM
Is Air France-KLM stock cheap or expensive?
On P/E and EV / EBITDA, it trades 81% below the Industrials median on average. Valuation score: 8.0 out of 10 (median for Industrials: 5.0). Average analyst target: 12.68 EUR, +13.3% versus the price. This is not investment advice.
What score does Air France-KLM get on MeridIAn Screener?
It scores 4.6 out of 10, rank 1,832 of 2,130 (better than 13% of the companies analysed). Its strongest category is Valuation (8.0) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Air France-KLM's P/E ratio?
Its P/E is 2.9: the share price equals 2.9 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 2.4.
How much is Air France-KLM worth on the stock market?
Its market capitalisation is 2.9B EUR and its enterprise value, debt included, is 14.5B EUR.
How much debt does Air France-KLM have?
Its net debt (debt minus cash) is 9.4B EUR. That is 2.52 times its EBITDA; the Industrials median is 1.58.
Does Air France-KLM pay a dividend?
It pays no dividend, or almost none.
How has Air France-KLM stock performed over the last year?
It has fallen 1.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 8.37 and 14.43 EUR. Past performance does not guarantee future results.
What do analysts think of Air France-KLM?
19 analysts cover it; their average recommendation is “Hold” and their average target is 12.68 EUR (+13.3% versus the price). It is an estimate, not market data.