One-glance verdict
Undervalued
$113.75 our estimate vs market $55.55
Wall Street consensus: $67.52 (-40.6% lower than our fair-value estimate)
51% below our estimate, below the bear case
Fundamentals snapshot
Ryanair Holdings plc
RYAAY · NMS · Industrials · Airlines
Current price
$55.55
52-week range
$51.02 - $74.24
Market cap
$28.77B
Balance sheet
Healthy
62.81x Strong cushion
Net cash $2.94B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 11.4% last year.
- Reward Returns 22.4% on equity, ahead of 60% of its peers.
- Risk Forward P/E (14.4x) is higher than trailing (13.4x) - earnings are expected to drop.
- Risk Insider ownership is only 0.0% (peer median: 1.0%).
What this company does
Ryanair Holdings plc
Ryanair Holdings plc is an airline that flies people around Europe. Most of its money comes from selling plane tickets and extra services like seat selection or baggage fees. This is important because it shows how they make money beyond just the basic flight.
How the company got here
Ryanair began its journey in 1985 with a single airplane and a modest route between Ireland and the United Kingdom. The company's early years were marked by a period of restructuring and investment, including a significant infusion of capital from the Ryan family in 1989. A pivotal moment came in 1993 when Michael O'Leary took the helm as CEO, ushering in an era of aggressive cost-cutting and a focus on the low-cost travel model. The company went public in 1997, listing on both the Dublin and NASDAQ stock exchanges, which provided the capital needed for its ambitious European expansion. The launch of its e-commerce website in 2000 proved to be a game-changer, allowing Ryanair to sell tickets directly to consumers and bypass traditional travel agents, significantly reducing costs and increasing sales volume. The deregulation of the European aviation market in the mid-1990s provided a fertile ground for Ryanair's low-cost strategy to flourish, enabling it to rapidly expand its network across the continent.
What it actually does
Ryanair is an airline that focuses on providing very cheap flights across Europe and to some destinations in North Africa and the Middle East. Think of it as the go-to option when you want to fly from one city to another without spending a lot of money. They operate a large fleet of aircraft, flying many short routes every day. Beyond just the flight itself, Ryanair also offers various extra services that you can pay for, like choosing your seat, bringing more luggage, or buying food and drinks on the plane. They also help customers book things like car rentals, hotels, and travel insurance through their website and app.
Ryanair DAC
This is the main airline operation and the largest part of Ryanair Holdings plc. Ryanair DAC operates the vast majority of the company's flights, focusing on short-haul, point-to-point routes across Europe. It's the part of the business that most people think of when they hear "Ryanair." This segment is responsible for carrying millions of passengers each year, making it the largest airline in Europe by the number of passengers flown. The revenue generated here comes primarily from ticket sales, with a significant portion also coming from the extra services passengers choose to purchase.
Malta Air
Malta Air is another airline subsidiary within the Ryanair Holdings group. It operates a fleet of aircraft and flies routes, often complementing the network of Ryanair DAC. While it functions similarly to the main Ryanair airline, it operates under its own designation. The revenue from Malta Air comes from passenger fares and the ancillary services it offers, contributing to the overall financial performance of the holding company.
Buzz
Buzz is a Polish airline subsidiary of Ryanair Holdings. It was established as a separate business unit and began operations in 2018. Buzz primarily serves routes within Poland and other European destinations, often catering to the Polish market. Like the other airline segments, its income is derived from ticket sales and additional services offered to passengers.
Lauda Europe
Lauda Europe is an Austrian low-cost airline that became part of the Ryanair Holdings group. It operates flights, often focusing on leisure destinations, and contributes to the group's overall capacity and route network. The revenue generated by Lauda Europe comes from passenger ticket sales and the sale of various ancillary services, adding to the consolidated financial results of Ryanair Holdings.
Ryanair UK
Ryanair UK is the United Kingdom-based airline subsidiary of Ryanair Holdings. It operates flights primarily within the UK and to some European destinations. This segment allows the group to maintain a strong presence in the UK market. Its income is generated through passenger fares and the sale of additional services, supporting the broader financial goals of the parent company.
What management is betting on now
Ryanair's management is focused on maintaining its position as Europe's leading low-fares airline group by continuing to grow passenger numbers and keep costs as low as possible. A key part of this strategy involves investing in new, more fuel-efficient aircraft, like the Boeing 737 MAX 10, to reduce operating expenses and environmental impact. They are also looking to increase the use of technology, including artificial intelligence (AI), to optimize flight schedules and improve operational efficiency, which they believe can increase the productivity of their large fleet. The company aims to carry a significant number of passengers annually, making flying affordable for a broad customer base, and is exploring ways to increase revenue from services beyond just ticket sales.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $113.75 vs current price $55.55
Wall Street consensus is the average analyst price target: $67.52 (-40.6% lower than our fair-value estimate).
Our most-likely fair value is $113.75 a share — about 104.8% above today's price of $55.55, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $2.9B - more cash than debt. Interest coverage 62.8x.
Net debt
$-2.94B
Interest coverage
62.81x
Ryanair Holdings plc's profit covers its interest bill about 62.8 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RYAAY
BASELINE
Ryanair Holdings plc
Total debt $203.70M Interest coverage 62.81x This is the baseline the peer rows are being compared against.
Total debt $19.94B Interest coverage 8.57x -86% vs RYAAY Carries about 7.3x less debt cushion than RYAAY.
Total debt $34.29B Interest coverage 4.26x -93% vs RYAAY Carries about 14.7x less debt cushion than RYAAY.
Total debt $6.87B Interest coverage 3.79x -94% vs RYAAY Carries about 16.6x less debt cushion than RYAAY.
Total debt $37.21B Interest coverage 0.95x -98% vs RYAAY Carries about 66.3x less debt cushion than RYAAY.
Total debt $539.80M Interest coverage 10.58x -83% vs RYAAY Carries about 5.9x less debt cushion than RYAAY.
What you should know
The case for and against RYAAY
3 Rewards
3 Risks
Rewards
-
Revenue grew 11.4% last year.
-
Returns 22.4% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (14.4x) is higher than trailing (13.4x) - earnings are expected to drop.
-
Insider ownership is only 0.0% (peer median: 1.0%).
-
Operating margin compressed from 13.4% to 13.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.35x
Forward P/E
14.36x
P/B
2.71x
P/S
1.85x
EV/EBITDA
7.39x
PEG ratio
5.60x
Profitability
How much profit each dollar creates
Gross margin
27.9%
Operating margin
13.1%
Net margin
12.1%
ROE
22.4%
ROA
7.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
0.79x
Quick ratio
0.37x
Total debt
$203.70M
Total cash
$3.14B
Growth
How the business has been compounding
Revenue TTM
$17.46B
Revenue 5Y CAGR
13.0%
EPS TTM
4.16
EPS 5Y CAGR
21.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.14B
Free CF TTM
$2.02B
FCF margin
11.6%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
24.6%
Last ex-div date
2026-08-07