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If you are wondering whether Air France-KLM is attractively priced or not, this article walks through what the current market price might be implying about the stock.
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The shares recently closed at €10.81, with returns of 1.2% over the last 7 days, an 11.9% decline over the last 30 days, and a 35.1% gain over the last year. This is set against longer term 3-year and 5-year returns of 31.9% and 57.3% declines respectively.
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Recent coverage around Air France-KLM has focused on its position as a major European flag carrier and the ongoing attention investors pay to airlines as travel patterns evolve. This backdrop helps frame why the share price has seen both shorter term weakness and stronger 1-year returns, as the market reassesses risk and potential.
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Simply Wall St currently gives Air France-KLM a valuation score of 5/6. We will unpack this using several common valuation approaches, before finishing with a broader way to think about what valuation really means for your own portfolio.
Air France-KLM delivered 35.1% returns over the last year. See how this stacks up to the rest of the Airlines industry.
A Discounted Cash Flow model projects a company’s future cash flows and then discounts them back to today’s value to estimate what the entire business might be worth per share.
For Air France-KLM, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flows in €. The latest twelve month free cash flow is about €951.8 million. Analysts provide specific free cash flow estimates for the next few years, and from there Simply Wall St extrapolates projections, including an estimate of €1,523 million in free cash flow for 2029 and further values out to 2035.
Bringing all of those projected cash flows back to today using a discount rate gives an estimated intrinsic value of €55.49 per share. Compared with the recent share price of €10.81, the model implies the stock is about 80.5% undervalued based on these cash flow assumptions.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Air France-KLM is undervalued by 80.5%. Track this in your watchlist or portfolio, or discover 874 more undervalued stocks based on cash flows.
AF Discounted Cash Flow as at Feb 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Air France-KLM.
For a company that is generating profits, the P/E ratio is a straightforward way to see what you are paying for each euro of earnings. It ties directly to the bottom line, which many investors focus on when they compare opportunities.
What counts as a “normal” or “fair” P/E depends a lot on what the market expects for future growth and how risky those earnings might be. Higher growth or lower perceived risk can justify a higher multiple, while lower growth or higher risk usually points to a lower one.
Air France-KLM is currently trading on a P/E of 3.14x. That sits well below the Airlines industry average P/E of 9.08x and also below the peer group average of 53.95x. Simply Wall St also calculates a proprietary “Fair Ratio” of 14.31x, which is the P/E level suggested by factors such as the company’s earnings growth profile, its industry, profit margins, market cap and key risks.
This Fair Ratio can be more informative than a simple comparison with peers or the broad industry because it attempts to adjust for those specific characteristics rather than treating all airlines as identical. Comparing the Fair Ratio of 14.31x with the current P/E of 3.14x suggests the shares are trading below that fair level on this metric.
Result: UNDERVALUED
ENXTPA:AF P/E Ratio as at Feb 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1426 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your story about a company linked directly to your numbers such as fair value, and your expectations for future revenue, earnings and margins. On Simply Wall St’s Community page, used by millions of investors, you can set up a Narrative for Air France-KLM that connects what you think is happening with the business to a clear financial forecast and a fair value that you can compare with today’s share price to help you decide if, and when, you might buy or sell. Narratives are updated automatically when fresh information such as news or earnings is added, so your story and your numbers stay aligned without extra work from you. For example, one Air France-KLM Narrative might assume a higher fair value with stronger long term revenue and margins, while another could assume a lower fair value with more cautious revenue and profitability expectations.
Do you think there’s more to the story for Air France-KLM? Head over to our Community to see what others are saying!
ENXTPA:AF 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AF.PA.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
