easyJet: Valuation considerations

Research evidence excerpt

easyJet: Valuation considerations

Equity Research

European Transportation

23 June 2026

easyJet

Valuation considerations

We assess easyJet's assets to be worth in excess of £11 per

share. But, focussing on PE multiples, assuming easyJet

delivers its £1bn pretax profit target by 2030, we would have EZJ.L/EZJ LN OVERWEIGHT

European Transportation NEUTRAL

to assume a PE ratio of 8x or above and a discount rate of 8% Price Target GBP 5.70

or below to judge 625p as undervaluing the company. Price (22-Jun-26) GBP 5.18

Potential Upside/Downside +10.0%

Source: Bloomberg, Barclays Research

Our NAV analysis sees easyJet's asset values at £11.35: Our NAV analysis includes the market

value of the owned fleet, pre-delivery payments, our estimates of slot values and a value for the

holidays business. In discussing this with investors, a range of potential items could be included European Transportation

in the analysis, depending on your views. We have seen pushback against including the Andrew Lobbenberg

+44 (0)20 3555 0639holidays business (£1.68 per share in our analysis), as if the fleet and slots are sold there is no

andrew.lobbenberg@barclays.com

airline and hence no holidays business. Conversely, we have not included derivatives, which Barclays, UK

were 79p per share of value at 1H. We include now value for for the undelivered aircraft.

Assuming a £1m of value in the order book per aircraft would imply a further 35p per share of Rahul Singh

+91 (0)22 6175 2529value. We remain comfortable with our original NAV, but for context, excluding holidays but

rahul.xb.singh@barclays.com

including derivatives and future orders would imply an NAV of £10.81. Barclays, UK

PE analysis of targetted £1bn PBT makes rejection of 625p offer more of a debate: Figure Emilie Fung