Air Canada Valuation
| AC Stock | CAD 24.20 0.24 1.00% |
At this time, the firm appears to be undervalued. Air Canada shows a prevailing Real Value of C$25.87 per share. The current price of the firm is C$24.2. Our model approximates the value of Air Canada from analyzing the firm fundamentals such as Profit Margin of 0.12 %, current valuation of 12.66 B, and Return On Equity of 1.4 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Air Canada's valuation include:
Price Book 2.8058 | Enterprise Value 12.7 B | Enterprise Value Ebitda 3.2379 | Price Sales 0.3939 | Forward PE 9.0334 |
Undervalued
Today
Please note that Air Canada's price fluctuation is very steady at this time. Calculation of the real value of Air Canada is based on 3 months time horizon. Increasing Air Canada's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Air Canada is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Air Stock. However, Air Canada's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 24.2 | Real 25.87 | Hype 23.85 | Naive 23.04 |
The intrinsic value of Air Canada's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Air Canada's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Air Canada helps investors to forecast how Air stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Air Canada more accurately as focusing exclusively on Air Canada's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Air Canada's intrinsic value based on its ongoing forecasts of Air Canada's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Air Canada's closest peers.
Air Canada Cash |
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Air Valuation Trend
Knowing Air Canada's actual value is paramount for traders when making sound investment determinations. Using both Air Canada's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Air Canada Total Value Analysis
Air Canada is presently anticipated to have takeover price of 12.66 B with market capitalization of 8.68 B, debt of 13 B, and cash on hands of 2.69 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Air Canada fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
12.66 B | 8.68 B | 13 B | 2.69 B |
Air Canada Investor Information
About 15.0% of the company shares are held by institutions such as insurance companies. The book value of Air Canada was presently reported as 8.63. The company has Price/Earnings To Growth (PEG) ratio of 0.34. Air Canada recorded earning per share (EPS) of 6.66. The entity had not issued any dividends in recent years. Based on the key measurements obtained from Air Canada's financial statements, Air Canada is performing exceptionally good at this time. It has a great probability to report excellent financial results in December.Air Canada Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Air Canada has an asset utilization ratio of 72.3 percent. This suggests that the Company is making C$0.72 for each dollar of assets. An increasing asset utilization means that Air Canada is more efficient with each dollar of assets it utilizes for everyday operations.Air Canada Ownership Allocation
Air Canada holds a total of 358.49 Million outstanding shares. Almost 84.97 percent of Air Canada outstanding shares are held by general public with 0.14 (percent) owned by insiders and only 14.89 % by other corporate entities. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Air Canada Profitability Analysis
The company reported the revenue of 21.83 B. Net Income was 2.28 B with profit before overhead, payroll, taxes, and interest of 4 B.About Air Canada Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Air Canada. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Air Canada based exclusively on its fundamental and basic technical indicators. By analyzing Air Canada's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Air Canada's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Air Canada. We calculate exposure to Air Canada's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Air Canada's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.2 B | 3.5 B | |
| Pretax Profit Margin | 0.10 | 0.11 | |
| Operating Profit Margin | 0.10 | 0.11 | |
| Net Profit Margin | 0.10 | 0.11 | |
| Gross Profit Margin | 0.28 | 0.30 |
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.