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Air CanadaTSX:AC -2.84%84 Debt-to-EBITDA is 3.95 as of Mar. 2026, which is 19% above its 10-year median of 3.33. GuruFocus rates TSX:AC with a GF Score™ of 84/100 and a GF Value™ of C$24.32 (Fairly Valued). The stock has 4 warning signs investors should review. Among 870 Transportation companies, Air Canada ranks worse than 59.89% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Air Canada's Debt-to-EBITDA or its related term are showing as below:
TSX:AC'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -10.17 Med: 3.33 Max: 16.11
Current: 3.33
During the past 13 years, the highest Debt-to-EBITDA Ratio of Air Canada was 16.11. The lowest was -10.17. And the median was 3.33.
TSX:AC's Debt-to-EBITDA is ranked worse than 59.89% of 870
companies
in the Transportation industry
Industry Median: 2.645
vs TSX:AC: 3.33
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Air Canada Debt-to-EBITDA Related Terms
Air Canada Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Air Canada's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:AC vs DAL, UAL, LUV: Debt-to-EBITDA Comparison
For the Airlines subindustry, Air Canada's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Air Canada Debt-to-EBITDA vs Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Air Canada's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Air Canada (TSX:AC) has a Debt-to-EBITDA of 3.95 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Air Canada. This is 19% above median its historical median of 3.33. According to the industry distribution chart, Air Canada ranks #521 out of 870 companies in the Transportation industry, placing it in the top 59.9%.
Is Air Canada's Debt-to-EBITDA too high?
Air Canada's current Debt-to-EBITDA of 3.95 is 19% above median its 10-year median of 3.33. The Transportation industry median Debt-to-EBITDA is 2.65. Air Canada's value of 3.95 is 49.3% above this industry median. Based on the distribution chart, Air Canada ranks #521 out of 870 companies in the Transportation industry, which is below the industry midpoint. Overall, Air Canada has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Canada's Debt-to-EBITDA compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Canada ranks #521 out of 870 companies for Debt-to-EBITDA. This places Air Canada in the lower half of its industry. The industry median Debt-to-EBITDA is 2.65. Air Canada's value of 3.95 is 49.3% above this benchmark. While the company's 10-year median is 3.33 vs. the industry median of 2.65, Air Canada has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Transportation company?
The median Debt-to-EBITDA among Transportation companies is 2.65, based on 870 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Canada's current Debt-to-EBITDA of 3.95 is 49.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Air Canada. For the Transportation industry, the median Debt-to-EBITDA is 2.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Canada's current Debt-to-EBITDA is 3.95, which is 19% above median its own 10-year median of 3.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Canada stock overvalued right now?
Based on GuruFocus' analysis, Air Canada (TSX:AC) is currently considered Fairly Valued. The stock's GF Value™ is C$24.32, compared to a current price of C$22.58 — trading 7.2% below its estimated fair value. The current Debt-to-EBITDA is 3.95, which is 19% above median its 10-year median of 3.33 and 49.3% above the Transportation industry median of 2.65. Air Canada's overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Air Canada (TSX:AC), the current Debt-to-EBITDA is 3.95 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Air Canada (TSX:AC) Overvalued in 2026?
Based on GuruFocus' analysis, Air Canada stock appears to be undervalued.
The current stock price of C$22.58 is trading 7.2% below its estimated GF Value™ of C$24.32.
GuruFocus considers Air Canada to be Fairly Valued.
Key valuation signals for TSX:AC:
Debt-to-EBITDA: 3.95 (19% above median its 10-year median of 3.33)
GF Value™: C$24.32 vs. price of C$22.58 (7.2% below fair value)
Industry Position: 49.3% above the Transportation median (#521 of 870)
No single metric tells the full story. See the TSX:AC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Canada is Canada's largest airline, serving nearly 50 million passengers each year, together with its low-cost subbrand, Rouge, and contracts for regional connection flights into its network. Air Canada is a sixth-freedom airline, which flies many passengers on long-haul trips to and from the US with a layover in Canada.
84GF Score
Get the complete analysis for TSX:AC
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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