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Air CanadaTSX:AC -0.13%84 EV-to-EBIT is 7.26 as of Jul. 24, 2026, which is 11% above its 10-year median of 6.55. GuruFocus rates TSX:AC with a GF Score™ of 84/100 and a GF Value™ of C$24.36 (Fairly Valued). The stock has 4 warning signs investors should review. Among 868 Transportation companies, Air Canada ranks better than 76.04% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Air Canada's Enterprise Value for the quarter that ended in Mar. 2026 was C$10,814 Mil.
Air Canada's 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 C$1,669 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.
Air Canada EV-to-EBIT Related Terms
Air Canada EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Air Canada's EV-to-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.
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.
Air Canada's current Enterprise Value is C$12,114 Mil.
Air Canada's 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 C$1,669 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.
Air Canada (TSX:AC) has a EV-to-EBIT of 7.26 as of Jul. 24, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Air Canada and its competitors. This is 11% above median its historical median of 6.55. According to the industry distribution chart, Air Canada ranks #208 out of 868 companies in the Transportation industry, placing it in the top 24%.
Is Air Canada's EV-to-EBIT too high?
Air Canada's current EV-to-EBIT of 7.26 is 11% above median its 10-year median of 6.55. The Transportation industry median EV-to-EBIT is 12.18. Air Canada's value of 7.26 is 40.4% below this industry median. Based on the distribution chart, Air Canada ranks #208 out of 868 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. 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 EV-to-EBIT compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Canada ranks #208 out of 868 companies for EV-to-EBIT. This places Air Canada in the top 24% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 12.18. Air Canada's value of 7.26 is 40.4% below this benchmark. While the company's 10-year median is 6.55 vs. the industry median of 12.18, Air Canada has consistently been below 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 EV-to-EBIT for a Transportation company?
The median EV-to-EBIT among Transportation companies is 12.18, based on 868 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Canada's current EV-to-EBIT of 7.26 is 40.4% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Air Canada and its competitors. For the Transportation industry, the median EV-to-EBIT is 12.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Canada's current EV-to-EBIT is 7.26, which is 11% above median its own 10-year median of 6.55. 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$24.36, compared to a current price of C$22.65 — trading 7% below its estimated fair value. The current EV-to-EBIT is 7.26, which is 11% above median its 10-year median of 6.55 and 40.4% below the Transportation industry median of 12.18. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Air Canada (TSX:AC), the current EV-to-EBIT is 7.26 as of Jul. 24, 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$22.65 is trading 7% below its estimated GF Value™ of C$24.36.
GuruFocus considers Air Canada to be Fairly Valued.
Key valuation signals for TSX:AC:
EV-to-EBIT: 7.26 (11% above median its 10-year median of 6.55)
GF Value™: C$24.36 vs. price of C$22.65 (7% below fair value)
Industry Position: 40.4% below the Transportation median (#208 of 868)
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
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