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Highlights
- FLT's share price decline opens discussion on consumer discretionary trends
- Flight Centre sees strong revenue growth despite high interest rates
- Valuation metrics show FLT trading below its 5-year historical average
The Flight Centre Travel Group (ASX:FLT) has seen its share price decline by 21.7% year-to-date in 2025, drawing fresh attention to both the company’s fundamentals and broader dynamics within the consumer discretionary segment of the ASX300 index. Despite the drop, there are multiple facets that make FLT a company worth watching closely in the current market environment.
Established in 1982 and headquartered in Sydney, Flight Centre operates a global network of travel services across more than 80 countries. The company caters to both retail and corporate customers, offering not only traditional travel agency services but also tour operations, travel experiences, and hotel management. One of FLT’s unique selling points lies in its personal consultant-based approach, which differentiates it from many online travel platforms.
Interestingly, even amid elevated interest rates, which typically dampen discretionary spending, FLT has reported revenue growth of 89.8% per annum over the past three years. This resilience hints at pent-up demand in leisure and corporate travel, particularly as global mobility continues to normalise post-pandemic.
From a broader market perspective, consumer discretionary stocks have shown strong performance. The S&P/ASX 200 Consumer Discretionary Index (ASX:XDJ) delivered an average annual return of 13.72% over the past five years, outperforming the broader ASX 200 which returned 9.09%. This performance highlights the strength and investor interest in this sector, even when faced with economic headwinds.
Another notable aspect of Flight Centre’s profile is its dividend. Although the yield has fluctuated, the current payout sits at 3.1%, placing it among potentially appealing ASX dividend stocks for those tracking income-generating investments.
When it comes to valuation, FLT is currently trading at a price-to-sales (P/S) ratio of 1.07x, significantly lower than its 5-year average of 3.42x. This may indicate that the market is undervaluing the company relative to its historical norms, especially given its solid revenue momentum. That said, a single metric rarely provides the full picture, and valuation assessments benefit from a multi-faceted approach.
As one of the recognised names in the ASX300 index, Flight Centre presents a compelling case study of how consumer behaviour, interest rate cycles, and valuation multiples intersect in today's equity markets.
