Is Liberty Latin America (LILA) Pricing Reflect Long Term Value After Recent Share Weakness

Simply Wall St

Tue, February 17, 2026 at 1:36 PM GMT+9 4 min read

In this article:

LILA

-3.50%

LILAB

-31.24%

LILAK

-3.35%

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If you are wondering whether Liberty Latin America is priced attractively right now, this article will walk you through what the current market price could be implying about the company’s value.

The stock last closed at US$7.72, with a 4.8% decline over the past 7 days, a 3.1% gain over 30 days, a 6.3% return year to date, and a 4.7% return over 1 year, set against longer term 3-year and 5-year returns of 16.4% and 34.1% declines.

Recent coverage has focused on Liberty Latin America’s position within the wider telecommunications space and ongoing interest in regional connectivity, which helps frame how investors interpret these ups and downs in the share price. That context matters when you are trying to separate short term sentiment from what the business might be worth over a longer horizon.

On our framework of 6 valuation checks, Liberty Latin America scores 5 out of 6. You can see this in detail in our valuation score. Next, we will walk through the usual valuation approaches before finishing with a way to think about value that goes beyond any single metric.

Find out why Liberty Latin America’s 4.7% return over the last year is lagging behind its peers.

Approach 1: Liberty Latin America Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and then discounting those back to a present value.

For Liberty Latin America, the model uses a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about US$197.3 million. Analysts provide explicit free cash flow estimates for the next few years, and beyond that, cash flows up to 2035 are extrapolated using Simply Wall St assumptions. By 2030, projected free cash flow is US$632.5 million, with each year between now and then discounted back to today.

Adding up these discounted cash flows gives an estimated intrinsic value of about US$31.32 per share. Compared with the recent share price of US$7.72, the model implies an intrinsic discount of roughly 75.4%, which indicates that the stock is trading well below this cash flow based estimate.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Liberty Latin America is undervalued by 75.4%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks.

LILA 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 Liberty Latin America.

Story Continues  

Approach 2: Liberty Latin America Price vs Sales

For many profitable companies, especially in telecom where earnings can be affected by depreciation and financing choices, the P/S ratio is a practical way to think about what you are paying for each dollar of revenue.

In general, higher growth expectations and lower perceived risk tend to support a higher P/S multiple. Slower expected growth or higher risk usually line up with a lower, more cautious range. That is why it helps to look at the company, its peers, and its industry side by side rather than in isolation.

Liberty Latin America currently trades on a P/S ratio of 0.35x. This sits below the broader Telecom industry average of 1.22x and also below the peer group average of 1.92x. Simply Wall St’s Fair Ratio for Liberty Latin America is 1.64x, which is a proprietary estimate of what a reasonable P/S might be given factors such as its earnings profile, industry, profit margins, market value and company specific risks.

The Fair Ratio is more tailored than a simple peer or industry comparison because it blends those reference points with Liberty Latin America’s own growth assumptions, risk profile and business quality. Comparing the current 0.35x P/S to the 1.64x Fair Ratio suggests the shares are trading at a sizable discount to this framework.

Result: UNDERVALUED

NasdaqGS:LILA P/S Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your Liberty Latin America Narrative

Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St’s Community page you can use Narratives to connect your own story about Liberty Latin America with a set of revenue, earnings and margin assumptions that flow through to a Fair Value. You can then compare that Fair Value with the current price to help decide whether the stock fits your buy or sell criteria, and see that view update automatically when new news or earnings arrive. One investor might build a bullish Liberty Latin America Narrative that lines up with a Fair Value closer to US$14.90, while another might use the same tools to frame a more cautious view nearer US$6.00, all within an accessible format used by millions of other investors.

Do you think there’s more to the story for Liberty Latin America? Head over to our Community to see what others are saying!

NasdaqGS:LILA 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 LILA.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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