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Deutsche Lufthansa AG (LHA) Fair Value & Analysis

Industrials · DE · Market cap €11.0B · ISIN DE0008232125

What is Deutsche Lufthansa AG really worth?

DL Deutsche Lufthansa AG LHA · XETRA
Price€7.85
Fair Value€18.94
Upside+141.4%
Quality41/100

Below-average quality, trading 59% below our fair value of €18.94.

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Risks

!Expensive Growth (revenue 5y +23.8 %/yr)
!Thin margins · 3.9% net margin
!Moderate debt · negative free cash flow
!Mixed vs. peers (7/14)
!Narrow moat 28/100

For context

·4.21% dividend yield
Evidence: High Range €14.18 – €23.67

Fair value as of: Aug 31, 2026

From 14 valuation models · updated 5 days ago

Share price −9.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (€14.18). The market is more pessimistic than our downside scenario.

Price vs Fair Value (5 years)

€10.09 €4.70 Fair Value €18.94 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range €4.70 – €10.09 · fair‑value band €14.18 – €23.67 · the €7.85 price screens below the €18.94 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 3 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 31, 2026.

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Analysis

Deutsche Lufthansa AG (LHA) currently trades at €7.85, while our model-based Fair Value estimate is €18.94, implying the stock looks roughly 58.6% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of €20.26 per share, and 7 of the 14 models we run sit above the €7.85 price. Bear case: the Dividend Discount group reads lowest at €4.41, and 7 of the 14 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Deutsche Lufthansa AG generated revenue of €40.3B at a net margin of 3.9%. Revenue grew 7.6% year over year. It earns a return on equity of 13.7%. Net debt stands at €13.4B. Fundamentals as of Aug 31, 2026

Our scenario range runs from €14.18 (bear case) to €23.67 (bull case); at €7.85, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 23% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at 45% fair-value upside, at 141%, LHA screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €0.6564 per share, which is 3.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence €8.86 €10.32 €19.86 73
EV/EBITDA €19.18 €27.83 €36.47 67
Growth-Adj P/E €14.18 €20.26 €26.34 67
All 14 models by family
Earnings-Based
Graham-Dodd €7.57 €22.04 €29.12 65
Lynch FV €4.58 €6.54 €8.50 61
PEG = 1.0 €4.58 €6.54 €8.50 57
Dividend Discount
Gordon GGM €2.74 €5.70 €9.05 66
DDM Multi-Stage €2.74 €4.41 €5.98 66
Multiples
P/E Multiple €17.54 €23.39 €29.24 63
P/S Multiple €14.20 €18.94 €23.67 58
P/B Multiple €14.20 €18.94 €23.67 55
EV/EBIT €2.03 €4.97 €7.90 61
EV/EBITDA €19.18 €27.83 €36.47 67
EV/Revenue €2.20 €4.90 50
Asset-Based
NCAV (Graham) €4.85 €6.49 €9.69 54
Economic Profit
Residual Income best evidence €8.86 €10.32 €19.86 73
Growth Earnings
Growth-Adj P/E €14.18 €20.26 €26.34 67

Widest divergence: Growth Earnings (€20.26) versus Dividend Discount (€4.41). Highest evidence: Residual Income (73).

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Key figures & financial health

P/E ratio 6.0
P/S ratio 0.20 P/E × margin
EPS (TTM) €1.30 price ÷ EPS = P/E 6.0
Dividend yield 4.2% payout 25.4%
Net margin 3.4% FY2025
Return on equity 13.7% TTM
More key figures
Profitability
Return on assets (EBIT) 0.2% avg 5y
Operating margin −11.0% TTM
Growth
Revenue (TTM) €40.3B TTM
Revenue growth (YoY) +7.6% 3y avg +8.6%
EPS growth (YoY) −55.8%
Balance sheet & cash flow
Free cash flow −€737M FY2025
Net debt €13.4B FY2025

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 43 · Market factors (momentum, volatility) 44

Profitability 35
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 20
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 42
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 39
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Deutsche Lufthansa AG operates as an aviation company in Europe, North America, Central and South America, Aisa/Pacific, the Middle East, and Africa. It operates in three segments: Passenger Airlines; Logistics; and Maintenance, Repair and Overhaul (MRO).

Full company description

Deutsche Lufthansa AG operates as an aviation company in Europe, North America, Central and South America, Aisa/Pacific, the Middle East, and Africa. It operates in three segments: Passenger Airlines; Logistics; and Maintenance, Repair and Overhaul (MRO). The Passenger Airlines segment offers products and services to passengers of Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings. The Logistics segment provides airfreight container management, time-critical shipments, and customs clearance services; and digital and modular logistics solutions for cross-border e-commerce solutions. The MRO segment provides maintenance, repair, and overhaul services for civil commercial aircraft serving original equipment manufacturers, aircraft leasing companies, VIP jet operators, government, armed forces, and airlines. It also sells flight tickets and related ancillary services through agents, its own websites, or other airlines; offers vocational and professional training for cockpit and cabin crew; and IT solutions. The company operates a fleet of 737 aircraft. Deutsche Lufthansa AG was founded in 1926 and is headquartered in Cologne, Germany.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Deutsche Lufthansa AG reported revenue of €39.6B in FY2025 versus €16.8B in FY2021, a compound +23.9%/yr. Reported net income was €1.3B in FY2025.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
€39.6B
Latest YoY
+5.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.8%
Avg. revenue growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+1.2% (−3.0 + 4.2)
Revenue +23.9%/yr
FY21 €16.8B
FY22 €30.9B
FY23 €35.4B
FY24 €37.6B
FY25 €39.6B
Net income
FY21 −€2.2B
FY22 €791M
FY23 €1.7B
FY24 €1.4B
FY25 €1.3B
Character of growth · EPS growth decomposed (2014-2025) −0.6 % p.a.
Revenue per share −1.0 %

of which total revenue +2.1 % · buybacks/dilution −3.0 %

EBIT margin −7.8 %
Tax rate −0.1 %
Residual (interest, one-offs) +9.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Deutsche Lufthansa AG Fair Value". https://www.fairvalue-calculator.com/stock/LHA

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Airlines · 57 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Below median
Fair Value upside +141% · Top 25%
Return on equity (TTM) 14% · Above median
Return on assets 2% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) −11% · Bottom 25%
Revenue growth 8% · Below median
Dividend yield (TTM) 4.2% · Top 25%
Debt / equity 0.80× · Higher than median

Valuation Multiples vs Airlines median · lower = cheaper

P/E (TTM) 6.0× · Cheaper than 75% of peers
P/B 1.09× · Cheaper than 75% of peers
P/S (TTM) 0.32× · Cheaper than median
EV/EBITDA 5.9× · Pricier than median
PEG 0.87× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 53
FUTURE38 · sector 51
PAST55 · sector 48
HEALTH60 · sector 69
DIVIDEND84 · sector 48

Insider activity: 30/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Airlines stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
Delta Air Lines, Inc DAL $80.07 $115.82 +45%
United Airlines Holdings UAL $110.60 $175.62 +59%
Ryanair Holdings RYA €25.47 €41.26 +62%
Southwest Airlines Co LUV $38.73 $14.76 −62%
InterGlobe Aviation Limited INDIGO ₹5,166 ₹3,073 −41%
Singapore Airlines Limited C6L 7.09 SGD 7.89 SGD +11%
Air China Limited 601111 ¥5.94 ¥7.16 +21%
LATAM Airlines Group LTM $52.50 $106.79 +103%
China Southern Airlines Company 600029 ¥5.08 ¥1.28 −75%
China Eastern Airlines Corporation 600115 ¥3.57 ¥14.20 +298%

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Frequently asked questions

Is Deutsche Lufthansa AG (LHA) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of €18.94 versus a price of €7.85, about +141% upside (undervalued).
What is the fair value of LHA?
Our model-based fair value for Deutsche Lufthansa AG is €18.94 (as of Aug 31, 2026), built from audited fundamentals. The current price: €7.85.
What is the quality score of LHA?
Deutsche Lufthansa AG has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Deutsche Lufthansa AG (LHA)?
Deutsche Lufthansa AG reported trailing-twelve-month revenue of about €40.3B (latest available figure, as of Aug 31, 2026).
What is the net profit margin of LHA?
The net profit margin of Deutsche Lufthansa AG is about 3.9%, meaning it keeps roughly 3.9% of revenue as net income. Based on the latest reported figures.
Does Deutsche Lufthansa AG pay a dividend?
Deutsche Lufthansa AG currently shows a dividend yield of about 4.21% relative to its recent price (as of Aug 31, 2026).
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