Air Canada banner

Air Canada
F:ADH2

Watchlist Manager
Air Canada Logo
Air Canada
F:ADH2
Watchlist
Price: 11.55 EUR Market Closed
Market Cap: €4.1B

EV/GP

0.6
Current
24%
Cheaper
vs 3-y average of 0.8

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
0.6
=
Enterprise Value
€9.1B
/
Gross Profit
CA$13.8B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
0.6
=
Enterprise Value
€9.1B
/
Gross Profit
CA$13.8B

Valuation Scenarios

Air Canada is trading below its 3-year average

If EV/GP returns to its 3-Year Average (0.8), the stock would be worth €15.15 (31% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+1 014%
Average Upside
299%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 0.6 €11.55
0%
3-Year Average 0.8 €15.15
+31%
5-Year Average 1.2 €22.83
+98%
Industry Average 0.9 €17.74
+54%
Country Average 6.6 €128.63
+1 014%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Lower than 99% of companies in Canada
Percentile
1st
Based on 1 947 companies
1st percentile
0.4
Low
0.1 — 3.8
Typical Range
3.8 — 10.6
High
10.6 —
Distribution Statistics
Canada
Min 0.1
30th Percentile 3.8
Median 6.6
70th Percentile 10.6
Max 259 067.6

Air Canada
Glance View

In the skies above the expansive Canadian landscape, Air Canada has carved a path as the nation's flag carrier, weaving its services across continents. Originating in 1937 as Trans-Canada Air Lines, the company soared through decades of aviation evolution, rebranding itself as Air Canada in 1965. Today, it stands as a robust player in the airline industry, providing passenger and cargo transport services. Anchored in Montreal, Quebec, Air Canada operates a vast network that spans over 200 destinations worldwide, making it a vital conduit for both international and domestic travel. It boasts a fleet of diverse aircraft, including Boeing, Airbus, and Embraer, allowing it to cater to varying demands from short hauls to long intercontinental routes. Air Canada's business model hinges on generating revenue from multiple streams. The passenger segment remains the core of its operations, offering tiers of service from economy to premium. This is supplemented by ancillary services such as seat selection, baggage fees, and in-flight purchases. Furthermore, the airline capitalizes on its Aeroplan loyalty program, fostering customer retention and engagement. Cargo transport plays a complementary role in its revenue structure, with increased focus on e-commerce shipments and vital freight services. Additionally, the airline benefits from cross-country partnerships and alliances, notably as a founding member of the Star Alliance, which enhances global connectivity and network reach. Through these endeavors, Air Canada seeks to pilot above turbulence and navigate towards financial sustainability.

ADH2 Intrinsic Value
51.91 EUR
Undervaluation 78%
Intrinsic Value
Price €11.55
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett