IAG IAG.MC
IAG is an airline holding company that operates Iberia, British Airways, and Vueling, with a network and low-cost model. IAG trades at a P/E of 7.97 and EV/EBITDA of 4.27, reflecting an attractive valuation, but earnings growth is negative (-30.40%) and the oil price rally adds pressure on margins. Strong ROE generation (42.14%) and low leverage (ND/EBITDA 0.74) offer some protection.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
IAG is an airline holding company that operates Iberia, British Airways, and Vueling, with a network and low-cost model. IAG trades at a P/E of 7.97 and EV/EBITDA of 4.27, reflecting an attractive valuation, but earnings growth is negative (-30.40%) and the oil price rally adds pressure on margins. Strong ROE generation (42.14%) and low leverage (ND/EBITDA 0.74) offer some protection.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.5 |
| Quality / Moat | 6.6 |
| Valuation | 8.6 |
| Growth | 2.1 |
| Dividend | 5.2 |
| Momentum | 6.4 |
| Risk & Context | 4.4 |
OVERALL SCORE: 6.0/10
Context and risks
The oil price rally and tensions in the Middle East raise fuel costs, a key expense for IAG. Additionally, the risk of disruption on air routes overflying conflict zones adds operational pressure.
News considered in the analysis
- 3 Airline Stocks Facing Higher Aviation Insurance Costs After The Moscow Drone Strike — El aumento de los costes de seguro es un riesgo real para las aerolíneas, pero el impacto en IAG es moderado y probablemente ya está parcialmente descontado en el precio.
- 3 British Undervalued Stocks For September 2026 — Listículo genérico sin información nueva sobre IAG.
- Insurance Australia agrees to settle $2 bln Credit Suisse Greensill lawsuit — Noticia sobre una aseguradora australiana, sin relación con IAG.
- Tokio Marine nears Suncorp takeover bid – report — Noticia del sector asegurador, irrelevante para IAG.
- European Indexes Turn Positive as Tech Stocks Steady — Ruido de mercado sin impacto específico en IAG.
Verdict: Hold, with caution due to the fuel cost environment and weak earnings, although valuation offers a margin of safety.
Main risk: Exposure to oil prices and geopolitical tensions on air routes, which could compress operating margins (14.42%) and reverse the earnings recovery.
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