Air Canada Stock Fundamentals
| AC Stock | CAD 24.68 0.01 0.04% |
Air Canada fundamentals help investors to digest information that contributes to Air Canada's financial success or failures. It also enables traders to predict the movement of Air Stock. The fundamental analysis module provides a way to measure Air Canada's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Air Canada stock.
At this time, Air Canada's Income Before Tax is very stable compared to the past year. As of the 27th of November 2024, Net Income is likely to grow to about 2.4 B, while Depreciation And Amortization is likely to drop about 879 M. Air | Select Account or Indicator |
Air Canada Company Current Valuation Analysis
Air Canada's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Air Canada Current Valuation | 12.84 B |
Most of Air Canada's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Air Canada is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Air Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Air Canada is extremely important. It helps to project a fair market value of Air Stock properly, considering its historical fundamentals such as Current Valuation. Since Air Canada's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Air Canada's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Air Canada's interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Air Canada has a Current Valuation of 12.84 B. This is 76.25% higher than that of the Passenger Airlines sector and 19.81% lower than that of the Industrials industry. The current valuation for all Canada stocks is 22.79% higher than that of the company.
Air Canada Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Air Canada's current stock value. Our valuation model uses many indicators to compare Air Canada value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Air Canada competition to find correlations between indicators driving Air Canada's intrinsic value. More Info.Air Canada is number one stock in return on equity category among its peers. It also is number one stock in return on asset category among its peers reporting about 0.02 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Air Canada is roughly 42.27 . At this time, Air Canada's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Air Canada by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Air Canada's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Air Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Air Canada's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Air Canada could also be used in its relative valuation, which is a method of valuing Air Canada by comparing valuation metrics of similar companies.Air Canada is currently under evaluation in current valuation category among its peers.
Air Fundamentals
About Air Canada Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Air Canada's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Air Canada using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Air Canada based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | 5.8 B | 3 B | |
| Total Revenue | 21.8 B | 13.6 B | |
| Cost Of Revenue | 15.7 B | 10.1 B | |
| Sales General And Administrative To Revenue | 0.03 | 0.02 | |
| Capex To Revenue | 0.07 | 0.09 | |
| Revenue Per Share | 60.99 | 73.32 | |
| Ebit Per Revenue | 0.10 | 0.11 |
Pair Trading with Air Canada
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Air Canada position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Air Canada will appreciate offsetting losses from the drop in the long position's value.Moving together with Air Stock
| 0.92 | RY-PS | Royal Bank Earnings Call This Week | PairCorr |
| 0.77 | RY | Royal Bank Earnings Call This Week | PairCorr |
| 0.9 | RY-PM | Royal Bank Earnings Call This Week | PairCorr |
| 0.87 | TD-PFI | Toronto Dominion Bank | PairCorr |
Moving against Air Stock
The ability to find closely correlated positions to Air Canada could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Air Canada when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Air Canada - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Air Canada to buy it.
The correlation of Air Canada is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Air Canada moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Air Canada moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Air Canada can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Air Stock
Air Canada financial ratios help investors to determine whether Air Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Air with respect to the benefits of owning Air Canada security.