ACDVF (Air Canada) EBIT: $1,211 Mil (TTM As of Mar. 2026)


ACDVF Air Canada ACDVF
83 GF Score
Price $17.10
GF Value $16.96
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is Air Canada EBIT?

Air Canada ACDVF +0.35% 83 EBIT is $1,211 Mil as of Mar. 2026. GuruFocus rates ACDVF with a GF Score™ of 83/100 and a GF Value™ of $16.96 (Fairly Valued). The stock has 4 warning signs investors should review.

Air Canada's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $198 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $1,211 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Air Canada's annualized ROC % for the quarter that ended in Mar. 2026 was 0.54%. Air Canada's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 7.40%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Air Canada's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 13.63%.


Air Canada  (OTCPK:ACDVF) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Air Canada's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=341.108 * ( 1 - 60.98% )/( (23863.719 + 25488.338)/ 2 )
=133.1003416/24676.0285
=0.54 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=22627.764 - 3271.475 - ( 4005.074 - max(0, 10245.741 - 5738.311+4005.074))
=23863.719

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=24116.618 - 3194.606 - ( 4875.364 - max(0, 11397.23 - 6830.904+4875.364))
=25488.338

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Air Canada's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=793.004/( ( (10521.928 + max(-6361.725, 0)) + (10920.554 + max(-7042.273, 0)) )/ 2 )
=793.004/( ( 10521.928 + 10920.554 )/ 2 )
=793.004/10721.241
=7.40 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(936.571 + 355.201 + 441.465) - (3271.475 + 4823.487 + 0)
=-6361.725

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1079.446 + 340.379 + 535.715) - (3194.606 + 5803.207 + 0)
=-7042.273

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Air Canada's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=1211.32/8886.909
=13.63 %

* 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.


Air Canada EBIT Related Terms


Air Canada EBIT Historical Data

* Premium members only.

The historical data trend for Air Canada's EBIT 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.

Air Canada EBIT Chart

Air Canada Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2,532.03 -462.28 2,341.98 874.57 1,011.24

Air Canada Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.39 188.76 479.25 345.05 198.25

ACDVF vs DAL, UAL, LUV: EBIT Comparison

For the Airlines subindustry, Air Canada's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Transportation Industry

For the Transportation industry and Industrials sector, Air Canada's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Air Canada's EV-to-EBIT falls into.


ACDVF
83GF Score
Air Canada ACDVF
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Air Canada EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,211 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $1,211 Mil mean?
Air Canada (ACDVF) has a EBIT of $1,211 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Air Canada.
Is Air Canada's EBIT too high?
Air Canada's current EBIT is $1,211 Mil. Overall, Air Canada has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Canada's EBIT compare to DAL and UAL?
Air Canada's EBIT of $1,211 Mil can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Transportation company?
A good EBIT depends on the Transportation industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Air Canada. Air Canada's current EBIT is $1,211 Mil. 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 (ACDVF) is currently considered Fairly Valued. The stock's GF Value™ is $16.96, compared to a current price of $17.10 — trading 0.8% above its estimated fair value. The current EBIT is $1,211 Mil. Air Canada's overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Air Canada (ACDVF), the current EBIT is $1,211 Mil 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 (ACDVF) Overvalued in 2026?

Based on GuruFocus' analysis, Air Canada stock appears to be overvalued. The current stock price of $17.10 is trading 0.8% above its estimated GF Value™ of $16.96. GuruFocus considers Air Canada to be Fairly Valued.

Key valuation signals for ACDVF:

  • EBIT: $1,211 Mil
  • GF Value™: $16.96 vs. price of $17.10 (0.8% above fair value)
  • GF Score™: 83/100 with 4 warning signs

No single metric tells the full story. See the ACDVF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Air Canada Business Description

Address 7373 Cote Vertu Boulevard West, Air Canada Centre, Saint-Laurent, Montreal, QC, CAN, H4S 1Z3
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.
83GF Score

Get the complete analysis for ACDVF

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$17.10
Price
$16.96
GF Value