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In May 2025, InvestingPro’s Fair Value models identified Controladora Vuela Compañía de Aviación (NYSE:VLRS), better known as Volaris, as significantly undervalued. The Mexican airline’s stock has since delivered an impressive 64% return in just five months, substantially outperforming the model’s already optimistic 49% estimated upside. This success story highlights how InvestingPro’s Fair Value analysis helps investors identify mispriced securities, find optimal entry points, and make more informed investment decisions based on intrinsic value calculations. For investors looking to discover similar opportunities, the Most undervalued list features stocks currently showing the greatest potential according to these same powerful models.
Volaris, Mexico’s leading ultra-low-cost carrier, was facing significant headwinds when InvestingPro’s models flagged it as undervalued in May 2025. The airline had experienced troubling price performance in the preceding months, with declines of 23.7% in February, 19.4% in March, and a steep 29.5% drop in April. Despite these challenges, the company maintained relatively solid fundamentals, reporting $3.05 billion in revenue and $908.3 million in EBITDA. InvestingPro’s analysis recognized the airline’s resilient low-cost business model and strong position in the Visiting Friends and Relatives market segment as key strengths that would help the company navigate turbulent conditions.
When InvestingPro identified the opportunity, Volaris was trading at just $4.09 per share, significantly below its Fair Value estimate of $6.10. The disparity represented a 49.1% potential upside, indicating substantial mispricing in the market. Fast forward to November 2025, and Volaris now trades at $6.63, delivering that remarkable 64% return. The stock’s journey upward included strong monthly performances of 28.5% in May, 24% in July, and 16.6% in September, validating InvestingPro’s analysis despite continued fundamental challenges in the airline industry.
Recent developments have further supported the bullish thesis. TD Cowen raised its price target for Volaris from $7 to $8, recognizing the airline’s improving prospects. The company has also enhanced customer satisfaction through AI implementation, demonstrating management’s commitment to operational excellence. While current financials show some pressure—revenue has decreased slightly to $2.99 billion and EBITDA has declined to $315.2 million—the market has recognized the airline’s potential for yield recovery and benefits from capacity discipline, as highlighted in InvestingPro’s original analysis.
InvestingPro’s Fair Value methodology stands out for its comprehensive approach, aggregating multiple valuation methods including discounted cash flow models, comparable company analyses, and analyst consensus targets. The system also factors in a margin of safety and considers future cash flow projections, providing investors with a well-rounded view of a stock’s intrinsic value. This multi-faceted approach was key to identifying Volaris’s potential despite its challenging industry environment.
The Volaris success story demonstrates the power of data-driven investment decisions. InvestingPro subscribers gained early access to this opportunity through detailed Fair Value analysis, comprehensive SWOT assessments, and real-time financial health indicators. Beyond just identifying undervalued stocks, InvestingPro provides the tools needed to understand why they’re undervalued and when to act. To discover more opportunities like Volaris and access the full suite of professional-grade investment tools, Learn more about InvestingPro and see how it can transform your investment strategy.