Air Canada Valuation

AC Stock  CAD 19.64  0.17  0.87%   
At this time, the firm appears to be fairly valued. Air Canada shows a prevailing Real Value of C$19.16 per share. The current price of the firm is C$19.64. Our model approximates the value of Air Canada from analyzing the firm fundamentals such as Profit Margin of 0.10 %, return on equity of -4.18, and Current Valuation of 12.29 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
8.7681
Enterprise Value
12.3 B
Enterprise Value Ebitda
2.5367
Price Sales
0.3197
Forward PE
6.6007
Fairly Valued
Today
19.64
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 12 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.
Our valuation method for Air Canada is useful when determining the fair value of the Air stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Air Canada. 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  19.64 Real  19.16 Hype  19.66 Naive  20.32
The real value of Air Stock, also known as its intrinsic value, is the underlying worth of Air Canada Company, which is reflected in its stock price. It is based on Air Canada's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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.
19.16
Real Value
20.91
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
-0.38-0.070.24
Details
Hype
Prediction
LowEstimatedHigh
17.9119.6621.41
Details
Naive
Forecast
LowNext ValueHigh
18.5720.3222.07
Details

Air Canada Investments

(1.47 Billion)

Air Canada Valuation Ratios as Compared to Competition

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 rated second in five year return category among related companies. It is number one stock in one year return category among related companies . . 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. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Air Canada's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Air Canada's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Air Canada and how it compares across the competition.

About Air Canada Valuation

The stock valuation mechanism determines the current worth of Air Canada on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Air Canada's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Air Canada's related companies.
Last ReportedProjected for 2024
Gross Profit6.2 B6.5 B
Pretax Profit Margin 0.10  0.11 
Operating Profit Margin(0.18)(0.17)
Net Profit Margin 0.10  0.11 
Gross Profit Margin 0.28  0.30 

8 Steps to conduct Air Canada's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Air Canada's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Air Canada's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Air Canada's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Air Canada's revenue streams: Identify Air Canada's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Air Canada's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Air Canada's growth potential: Evaluate Air Canada's management, business model, and growth potential.
  • Determine Air Canada's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Air Canada's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Air Canada. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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When running Air Canada's price analysis, check to measure Air Canada's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Air Canada is operating at the current time. Most of Air Canada's value examination focuses on studying past and present price action to predict the probability of Air Canada's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Air Canada's price. Additionally, you may evaluate how the addition of Air Canada to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Air Canada's value and its price as these two are different measures arrived at by different means. Investors typically determine if Air Canada is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Air Canada's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.