Air Canada Valuation
| ADH2 Stock | 14.38 0.08 0.55% |
At this time, the firm appears to be undervalued. Air Canada shows a prevailing Real Value of USD16.74 per share. The current price of the firm is USD14.38. Our model approximates the value of Air Canada from analyzing the firm fundamentals such as Current Valuation of 10.74 B, price to sales of 0.46 X, and EBITDA of 1.01 B as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Air Canada's price fluctuation is not too volatile 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.
Air Canada's intrinsic value may or may not be the same as its current market price of 14.38, 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 14.38 | Real 16.74 | Hype 14.38 | Naive 13.64 |
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: Air Canada Total Value Analysis
Air Canada is presently anticipated to have takeover price of 10.74 B with market capitalization of 5.46 B, debt of 12.55 B, and cash on hands of . 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 |
10.74 B | 5.46 B | 12.55 B |
Air Canada Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The newest return on assets of Air implies not a very effective usage of assets in December.Air Canada Profitability Analysis
The company reported the revenue of 16.56 B. Net Loss for the year was (1.7 B) with profit before overhead, payroll, taxes, and interest of 0.About Air Canada Valuation
The stock valuation mechanism determines Air Canada's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Air Canada based exclusively on its fundamental and basic technical indicators. 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.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.
Additional Tools for Air Stock Analysis
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.