Air Canada (AC.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-565.8%

-CA$98.24

vs CA$21.09 price

Levered DCF

-CA$75.47

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.78

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9.32×	4.63×	2.95×	-4.08×	-2.06×	-1.38×	8.8×	42.56×
P/B	2.32×	3.34×	8.31×	-4.46×	824.07×	3.74×	2.95×	1.75×
P/S	0.27×	0.36×	0.3×	0.42×	1.16×	1.1×	0.68×	0.39×
EV / EBITDA	4.34×	5.95×	3.65×	20.31×	-12.02×	-6.59×	4.71×	6.54×
Gross margin	30.6%	24.5%	28.2%	16.9%	-19.2%	-39.7%	24.0%	22.4%
Operating margin	4.1%	5.7%	10.4%	-1.1%	-47.6%	-64.7%	8.6%	8.3%
Net margin	2.9%	7.7%	10.4%	-10.3%	-56.3%	-79.7%	7.7%	0.9%
Current ratio	0.56×	0.79×	1.03×	1.03×	1.45×	1.21×	0.97×	1.11×
Debt / equity	4.47×	5.31×	17.41×	-10.49×	1,835.89×	7.57×	2.1×	2.46×
Interest coverage	1.51×	1.73×	2.45×	-0.21×	-4.17×	-5.98×	3.44×	2.81×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	24.9%	72.0%	285.9%	109.3%	-40022.2%	-271.0%	33.5%	4.1%
Return on invested capital	3.7%	5.9%	10.8%	-0.9%	-11.2%	-15.3%	6.5%	1.4%
Return on assets	2.1%	5.5%	7.5%	-5.8%	-11.8%	-16.1%	5.3%	0.8%
Free cash flow yield	12.5%	16.2%	41.7%	11.5%	-35.5%	-55.4%	28.4%	14.6%
Earnings yield	10.7%	21.6%	34.4%	-24.5%	-48.6%	-72.4%	11.4%	2.4%
Enterprise value	CA$14.8B	CA$18.1B	CA$17.7B	CA$20.6B	CA$19.5B	CA$15.6B	CA$20B	CA$16.2B
Net debt / EBITDA	2.58×	3.33×	2.28×	13.45×	-7.45×	-3.89×	1.65×	3.69×
Cash conversion cycle (days)	33	-54	-51	-40	-74	-63	-39	-28