Air Canada
TSX:AC

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Air Canada
TSX:AC
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Price: 22.24 CAD 0.82% Market Closed
Market Cap: 8B CAD
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Relative Value

The Relative Value of one AC stock under the Base Case scenario is 43.59 CAD. Compared to the current market price of 22.24 CAD, Air Canada is Undervalued by 49%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

AC Relative Value
Base Case
43.59 CAD
Undervaluation 49%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

0.4
P/S
P/S
Price to Sales
0.4
vs History
63
vs Industry
61
Median 3Y
0.4
Median 5Y
0.5
Industry
0.5
Forward
0.4
More Details
3.1
P/E
P/E
Price to Earnings
3.1
vs History
23
vs Industry
54
Median 3Y
-1.7
Median 5Y
-1.7
Industry
9.2
Forward
6.1
More Details
1.9
P/OCF
P/OCF
Price to OCF
1.9
vs History
36
vs Industry
62
Median 3Y
1.6
Median 5Y
1.6
Industry
3.5
More Details
Negative
P/FCFE
P/FCFE
Price to FCFE
N/A
vs History
vs Industry
38
Median 3Y
-4.9
Median 5Y
-4.1
Industry
10.5
More Details
2.6
P/B
P/B
Price to Book Value
2.6
vs History
52
vs Industry
7
Median 3Y
2.5
Median 5Y
2.9
Industry
2.1
More Details
0.5
EV/S
EV/S
Enterprise Value to Sales
0.5
vs History
77
vs Industry
80
Median 3Y
0.7
Median 5Y
0.8
Industry
0.9
Forward
0.5
More Details
0.8
EV/GP
EV/GP
Enterprise Value to Gross Profit
0.8
vs History
82
vs Industry
87
Median 3Y
1.3
Median 5Y
1.4
Industry
3
More Details
3.1
EV/EBITDA
EV/EBITDA
Enterprise Value to EBITDA
3.1
vs History
31
vs Industry
69
Median 3Y
2.8
Median 5Y
2.6
Industry
6.6
Forward
2.9
More Details
6.5
EV/EBIT
EV/EBIT
Enterprise Value to EBIT
6.5
vs History
22
vs Industry
61
Median 3Y
4.3
Median 5Y
-2.9
Industry
10.2
Forward
6
More Details
2.4
EV/OCF
EV/OCF
Enterprise Value to OCF
2.4
vs History
47
vs Industry
69
Median 3Y
2.6
Median 5Y
2.4
Industry
6.4
More Details
4.2
EV/FCFF
EV/FCFF
Enterprise Value to FCFF
4.2
vs History
34
vs Industry
54
Median 3Y
4.2
Median 5Y
3.8
Industry
10
More Details
0.5
EV/IC
EV/IC
Enterprise Value to IC
0.5
vs History
76
vs Industry
71
Median 3Y
0.7
Median 5Y
0.7
Industry
0.8
More Details

Multiples Across Competitors

AC Competitors Multiples
Air Canada Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
CA
Air Canada
TSX:AC
8B CAD 0.4 3.1 3.1 6.5
US
Delta Air Lines Inc
NYSE:DAL
40.3B USD 0.7 8.7 5.5 9
US
United Airlines Holdings Inc
NASDAQ:UAL
33.2B USD 0.6 12 8.8 8.8
CH
Kinarus Therapeutics Holding AG
SIX:KNRS
19.5B CHF 0 -1 404.3 -1 404.9 -1 404.9
IN
Interglobe Aviation Ltd
NSE:INDIGO
1.8T INR 2.5 27.4 11.6 21.2
IE
Ryanair Holdings PLC
LSE:RYA
15.4B EUR 1.1 8 4.5 6.8
US
Southwest Airlines Co
NYSE:LUV
20.5B USD 0.7 -418.1 12.4 -44.8
UK
International Consolidated Airlines Group SA
LSE:IAG
14.8B GBP 0.5 6.8 57.5 92
CN
Air China Ltd
SSE:601111
132.9B CNY 0.8 -279.2 -428.5 -428.5
CN
China Southern Airlines Co Ltd
SSE:600029
118.1B CNY 0.7 -33.2 62.9 62.9
SG
Singapore Airlines Ltd
SGX:C6L
19.1B SGD 1 9.7 4.9 10.5
P/E Multiple
Earnings Growth P/E to Growth
CA
Air Canada
TSX:AC
Average P/E: 10.8
3.1
-47%
N/A
US
Delta Air Lines Inc
NYSE:DAL
8.7
14%
0.6
US
United Airlines Holdings Inc
NASDAQ:UAL
12
82%
0.1
CH
Kinarus Therapeutics Holding AG
SIX:KNRS
Negative Multiple: -1 404.3 N/A N/A
IN
Interglobe Aviation Ltd
NSE:INDIGO
27.4
18%
1.6
IE
R
Ryanair Holdings PLC
LSE:RYA
8
48%
0.2
US
Southwest Airlines Co
NYSE:LUV
Negative Multiple: -418.1
209%
N/A
UK
International Consolidated Airlines Group SA
LSE:IAG
6.8
7%
1
CN
Air China Ltd
SSE:601111
Negative Multiple: -279.2 N/A N/A
CN
China Southern Airlines Co Ltd
SSE:600029
Negative Multiple: -33.2 N/A N/A
SG
Singapore Airlines Ltd
SGX:C6L
9.7
-50%
N/A
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
CA
Air Canada
TSX:AC
Average EV/EBITDA: 19
3.1
1%
5.8
US
Delta Air Lines Inc
NYSE:DAL
5.5
23%
0.2
US
United Airlines Holdings Inc
NASDAQ:UAL
8.8
30%
0.3
CH
Kinarus Therapeutics Holding AG
SIX:KNRS
Negative Multiple: -1 404.9 N/A N/A
IN
Interglobe Aviation Ltd
NSE:INDIGO
11.6
45%
0.3
IE
R
Ryanair Holdings PLC
LSE:RYA
4.5
33%
0.1
US
Southwest Airlines Co
NYSE:LUV
12.4
87%
0.1
UK
International Consolidated Airlines Group SA
LSE:IAG
57.5
25%
2.3
CN
Air China Ltd
SSE:601111
Negative Multiple: -428.5
17 174%
N/A
CN
China Southern Airlines Co Ltd
SSE:600029
62.9
754%
0.1
SG
Singapore Airlines Ltd
SGX:C6L
4.9
-17%
N/A
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
CA
Air Canada
TSX:AC
Average EV/EBIT: 27.2
6.5
-16%
N/A
US
Delta Air Lines Inc
NYSE:DAL
9
20%
0.5
US
United Airlines Holdings Inc
NASDAQ:UAL
8.8
27%
0.3
CH
Kinarus Therapeutics Holding AG
SIX:KNRS
Negative Multiple: -1 404.9 N/A N/A
IN
Interglobe Aviation Ltd
NSE:INDIGO
21.2
33%
0.6
IE
R
Ryanair Holdings PLC
LSE:RYA
6.8
37%
0.2
US
Southwest Airlines Co
NYSE:LUV
Negative Multiple: -44.8
360%
N/A
UK
International Consolidated Airlines Group SA
LSE:IAG
92
25%
3.6
CN
Air China Ltd
SSE:601111
Negative Multiple: -428.5
7 484%
N/A
CN
China Southern Airlines Co Ltd
SSE:600029
62.9
180%
0.3
SG
Singapore Airlines Ltd
SGX:C6L
10.5
-46%
N/A

See Also

Summary
AC intrinsic value, competitors valuation, and company profile.
DCF Valuation
AC stock valuation using Discount Cash Flow valuation method.
Relative Valuation
AC stock valuation using valuation multiples.
Wall Street Estimates
AC price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
AC stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
Discover More
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