EasyJet EZJ.L
United KingdomIndustrials · AirlinesLondon Stock Exchange · GBP
6.67 GBP (−1.9%)
13 analysts
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EasyJet is a low-cost airline based in the UK operating short and medium-haul flights in Europe, generating revenue from tickets and ancillary services.
Listed on London Stock Exchange · Symbol EZJ.L · LON: EZJ · Currency GBP
Key points
from its scores- ✓Good share-price trend8.6
- ✓Strong growth7.1
- ✕Little competitive advantage2.6
- ✕Unfavourable risk and backdrop3.4
- !Modest dividend5.9
AI analysis
bottom line, main risk, context and newsMargin recovery is the key, not the seemingly cheap valuation.
EasyJet trades at a P/E of 12.59 and EV/EBITDA of 5.63, but its operating margin of -13.48% and ROIC of -21.36% reveal a business that is not yet converting its revenue growth (11.9%) into profitability; its net cash position (ND/EBITDA -0.52) gives it room to weather cost pressures.
The main risk is the failure to convert revenue growth into profits: with an operating margin of -13.48% and free cash flow conversion of -97.73%, any cost shock (fuel, fees, competition) could prolong losses.
Context and risks
EasyJet has no material exposure to current macro factors: its net debt is negative (net cash), so the rise in rates does not affect it; oil is a relevant cost for an airline, but the context shows mixed oil prices without a clear direction to justify an adjustment. The main risk is operational and sector-specific, not macro.
Is EasyJet stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 56% below the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 12.6 | 25.4 | −51% |
| EV / EBITDA | 5.6 | 14.5 | −61% |
| Price / book | 1.4 | 4.1 | −65% |
| Price / sales | 0.5 | 2.1 | −77% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.7 out of 10 (median for Industrials: 5.0).
Average analyst target: 6.67 GBP, −1.9% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.0 (sector 6.4), Growth 7.1 (sector 6.6).
Classic formulas with standard assumptions (0.0% 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
- 12.6
- Forward P/E
- 18.2
- EV / EBITDA
- 5.6
- Price / book
- 1.4
- Price / sales
- 0.5
- PEG
- 3.12
- Market cap
- 5.1B GBP
- Enterprise value
- 4.7B GBP
Profitability
- ROE
- 13.1%
- ROA
- 2.8%
- ROIC (approx.)
- −21.4%
- Gross margin
- 34.1%
- Operating margin
- −13.5%
- Net margin
- 3.9%
- Free cash flow
- −813.1M GBP
- FCF yield
- −16.0%
- Cash conversion
- −98%
Solvency
- Total debt
- 3.0B GBP
- Net debt
- −434.0M GBP
- Cash
- 3.4B GBP
- EBITDA
- 832.0M GBP
- Net debt / EBITDA
- −0.52
- Debt / equity
- 82.36
- Current ratio
- 1.10
- Quick ratio
- 0.78
Growth
- Revenue growth
- +11.9%
- EPS (TTM)
- 0.54 GBP
- EPS (forward)
- 0.37 GBP
Dividend
- Dividend yield
- 1.9%
- Payout
- 24.4%
Risk and market
- Beta
- 1.67
- Analyst consensus
- Hold (13)
- Target price
- 6.67 GBP
Recent news
All EZJ.L news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about EasyJet
Is EasyJet stock cheap or expensive?
On P/E and EV / EBITDA, it trades 56% below the Industrials median on average. Valuation score: 6.7 out of 10 (median for Industrials: 5.0). Average analyst target: 6.67 GBP, −1.9% versus the price. This is not investment advice.
What score does EasyJet get on MeridIAn Screener?
It scores 5.3 out of 10, rank 1,529 of 2,130 (better than 26% of the companies analysed). Its strongest category is Momentum (8.6) and its weakest, Quality / Moat (2.6). Analysis of 08/10/2026.
What is EasyJet's P/E ratio?
Its P/E is 12.6: the share price equals 12.6 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 18.2.
How much is EasyJet worth on the stock market?
Its market capitalisation is 5.1B GBP and its enterprise value, debt included, is 4.7B GBP.
How much debt does EasyJet have?
It has more cash than debt: net cash of 434.0M GBP.
Does EasyJet pay a dividend?
Yes: its dividend yield is 1.91% and it pays out 24% of its earnings.
How has EasyJet stock performed over the last year?
It has risen 46.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 6.84 GBP. Past performance does not guarantee future results.
What do analysts think of EasyJet?
13 analysts cover it; their average recommendation is “Hold” and their average target is 6.67 GBP (−1.9% versus the price). It is an estimate, not market data.