Jet2 JET2.L
United KingdomConsumer Cyclical · Travel ServicesLondon Stock Exchange · GBP
16.78 GBP (+18.2%)
15 analysts
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Jet2 PLC is an integrated British travel group that operates a low-cost airline and a tour operator, selling package holidays and flights to destinations in Europe and the Mediterranean.
Listed on London Stock Exchange · Symbol JET2.L · LON: JET2 · Currency GBP
Key points
from its scores- ✓Attractive valuation7.6
- ✕Little competitive advantage2.3
- ✕Little or no dividend3.7
- !Moderate growth5.0
AI analysis
bottom line, main risk, context and newsHold pending a sustained improvement in margins and cash generation; the cheap valuation is not sufficient without an operational recovery.
Jet2 trades at a very low valuation (P/E 6.83, EV/EBITDA 1.18) and has net cash, but its operating profitability is poor (operating margin -12.88%, ROIC -30.08%) and free cash flow conversion is negative, reflecting a business that has yet to demonstrate its ability to generate value sustainably.
The main risk is the persistence of negative operating margins and poor free cash flow conversion, which could indicate structural problems in the low-cost travel business model.
Context and risks
Jet2 operates in the UK, a jurisdiction with stable governance and reasonable minority shareholder protection, with no direct geopolitical exposure in its main routes (Europe and the Mediterranean). There are no regulatory litigations, investigations, or dependence on subsidies that materially affect its business model. The governance risk is moderate and already reflected in the base score.
Is Jet2 stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 76% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 6.8 | 17.8 | −62% |
| EV / EBITDA | 1.2 | 11.2 | −89% |
| Price / book | 1.3 | 2.9 | −54% |
| Price / sales | 0.3 | 1.3 | −73% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.6 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 16.78 GBP, +18.2% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.0 (sector 5.7), Growth 5.0 (sector 5.9).
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 Consumer Cyclical medianValuation
- P/E
- 6.8
- Forward P/E
- 7.5
- EV / EBITDA
- 1.2
- Price / book
- 1.3
- Price / sales
- 0.3
- Market cap
- 2.6B GBP
- Enterprise value
- 721.4M GBP
Profitability
- ROE
- 22.4%
- ROA
- 4.3%
- ROIC (approx.)
- −30.1%
- Gross margin
- 15.5%
- Operating margin
- −12.9%
- Net margin
- 5.5%
- Free cash flow
- −270.1M GBP
- FCF yield
- −10.6%
- Cash conversion
- −44%
Solvency
- Total debt
- 1.3B GBP
- Net debt
- −2.0B GBP
- Cash
- 3.3B GBP
- EBITDA
- 610.0M GBP
- Net debt / EBITDA
- −3.30
- Debt / equity
- 62.09
- Current ratio
- 1.36
- Quick ratio
- 1.19
Growth
- Revenue growth
- +2.5%
- EPS (TTM)
- 2.08 GBP
- EPS (forward)
- 1.90 GBP
Dividend
- Dividend yield
- 1.2%
- Payout
- 8.0%
Risk and market
- Beta
- 1.23
- Analyst consensus
- Buy (15)
- Target price
- 16.78 GBP
Recent news
All JET2.L news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Jet2
Is Jet2 stock cheap or expensive?
On P/E and EV / EBITDA, it trades 76% below the Consumer Cyclical median on average. Valuation score: 7.6 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 16.78 GBP, +18.2% versus the price. This is not investment advice.
What score does Jet2 get on MeridIAn Screener?
It scores 5.2 out of 10, rank 1,592 of 2,130 (better than 24% of the companies analysed). Its strongest category is Valuation (7.6) and its weakest, Quality / Moat (2.3). Analysis of 08/10/2026.
What is Jet2's P/E ratio?
Its P/E is 6.8: the share price equals 6.8 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 7.5.
How much is Jet2 worth on the stock market?
Its market capitalisation is 2.6B GBP and its enterprise value, debt included, is 721.4M GBP.
How much debt does Jet2 have?
It has more cash than debt: net cash of 2.0B GBP.
Does Jet2 pay a dividend?
Yes: its dividend yield is 1.20% and it pays out 8% of its earnings.
How has Jet2 stock performed over the last year?
It has risen 3.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 16.12 GBP. Past performance does not guarantee future results.
What do analysts think of Jet2?
15 analysts cover it; their average recommendation is “Buy” and their average target is 16.78 GBP (+18.2% versus the price). It is an estimate, not market data.