International Consolidated Airlines Group S.A.
International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the North Atlantic, Latin America, the Caribbean, Europe, Africa, the Middle East, South Asia, the Asia Pacific, and internationally. It operate…
International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the North Atlantic, Latin America, the Caribbean, Europe, Africa, the Middle East, South Asia, the Asia Pacific, and internationally. It operates through British Airways, Iberia, Vueling, Aer Lingus, and IAG Loyalty segments. The company manufactures, repairs, maintains, overhauls, retrofits, repurposes, upgrades aircraft, and aircraft parts and equipment. In addition, it provides airline operations, insurance, aircraft leasing, aircraft maintenance, tour operation, air freight operations, call center, ground handling, trustee, retail, IT, finance, flight procurement, storage, aircraft technical assistance, human resources support, and airport infrastructure development services; and manages airline loyalty reward currency. The company was incorporated in 2009 and is headquartered in Harmondsworth, the United Kingdom.Looks undervalued
5-year outlook: Not shown because confidence is low: Earnings-based DCF agrees.
Other models: GBP 6.22–13.80 (median 7.65). The recommended value is 39% above that median, so treat the upside with extra caution.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price below modeled range
Free-cash-flow DCF using Fiscal year 2025 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 14.35% growth, 2.7% terminal growth, and 10% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 14.35%, discount rate 10%, terminal growth 2.70% (sector defaults). See a worked example.
Blended growth assumption: 14.3% (sector default 6.2%, own revenue history 40.0%, analyst revenue consensus 5.6%).
Analyst consensus expects revenue growth of 5.6% a year; the growth assumption used is 14.4%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — GBP 10.64 (+147.0%)
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EPS-based Gordon proxy
— GBP 7.65 (+77.6%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— GBP 10.64 (+147.0%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— GBP 6.22 (+44.3%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— GBP 13.80 (+220.3%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— GBP 10.52 (+144.0%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— GBP 39.18 (+809.1%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 7.62 | 43.4% |
| Base GBP 10.64 | 59.5% |
| Bull GBP 16.03 | 73.1% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At GBP 4.31 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.7%, discount 10.0%).
Compare: the market implies -4.4% a year, this model assumes 14.4%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.0% | 9.0% | 10.0% | 11.0% | 12.0% |
|---|---|---|---|---|---|
| 10.4% | 12.80 | 10.55 | 8.92 | 7.69 | 6.72 |
| 12.4% | 13.99 | 11.54 | 9.75 | 8.40 | 7.35 |
| 14.4% | 15.27 | 12.59 | 10.64 | 9.17 | 8.02 |
| 16.4% | 16.64 | 13.71 | 11.60 | 9.99 | 8.73 |
| 18.4% | 18.10 | 14.92 | 12.61 | 10.87 | 9.50 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 92 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 4 of 5 years profitable | 16 / 20 |
| Cash generation | free cash flow positive in 4 of 5 years | 16 / 20 |
| Growth | revenue +40.1% a year | 20 / 20 |
| Balance sheet | net debt 0.8x EBITDA | 20 / 20 |
| Margins | EBITDA margin 23% | 20 / 20 |
Peers in Industrials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| IAG.L (this company) | GBP 4.31 | 59.5% | 7.9 | 3.4 | 1.8% | 92 |
| EZJ.L easyJet plc | GBP 6.84 | 74.5% | 10.6 | 1.5 | 1.7% | 78 |
| WAWI.OL Wallenius Wilhelmsen ASA | NOK 160.60 | 64.8% | 7.1 | 2.2 | 0.3% | 100 |
| TPK.L Travis Perkins plc | GBP 6.45 | 55.4% | – | 0.8 | 2.1% | 46 |
| DFDS.CO DFDS A/S | DKK 153.20 | 47.3% | – | 0.6 | – | 64 |
| SRP.L Serco Group plc | GBP 2.79 | 45.8% | 19.8 | 3.3 | 1.5% | 82 |
| DG.PA VINCI SA | EUR 110.60 | 42.8% | 12.8 | 2.0 | 4.2% | 90 |
| HAFNI.OL Hafnia Limited | NOK 88.95 | 40.9% | 7.2 | 1.8 | 1.2% | 100 |
| MPCC.OL MPC Container Ships ASA | NOK 24.09 | 33.9% | 5.4 | 1.1 | 0.7% | 80 |
| Peer median | 8.9 | 1.6 | ||||
Dividends
Paid in the last 12 months: GBP 0.00 per share · yield 0.02% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.000 |
| 2025 | 0.001 |
| 2024 | 0.000 |
| 2020 | 0.002 |
| 2019 | 0.001 |
Annual financial statement
Saved annual report · Fiscal year 2025 · EODHD annual statements · period ended 31 Dec 2025
| Revenue | GBP 27,209,277,528 |
|---|---|
| EBITDA | GBP 6,201,059,618 |
| EBIT | GBP 4,008,520,791 |
| Net income | GBP 2,737,886,140 |
| Free cash flow | GBP 2,577,315,740 |
| Capital expenditures | GBP 2,819,809,523 |
| Debt | GBP 11,902,949,561 |
| Cash | GBP 6,949,024,175 |
| Working capital | GBP -4,629,341,506 |
| Shares outstanding | 5,031,980,000 |
| Reported dividends per share | GBP 0.0767 |