Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Air Canada's Enterprise Value is C$12,488 Mil.
Air Canada's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was C$3,142 Mil. Therefore, Air Canada's EV-to-EBIT ratio for today is 3.97.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Air Canada's Enterprise Value is C$12,488 Mil.
Air Canada's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 was C$4,845 Mil. Therefore, Air Canada's EV-to-EBITDA ratio for today is 2.58.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Air Canada's Enterprise Value is C$12,488 Mil.
Air Canada's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 was C$21,833 Mil. Therefore, Air Canada's EV-to-Revenue ratio for today is 0.57.
Air Canada Enterprise Value Historical Data
The historical data trend for Air Canada's Enterprise Value 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.
Competitive Comparison of Air Canada's Enterprise Value
For the Airlines subindustry, Air Canada's Enterprise Value, along with its competitors' market caps and Enterprise Value 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's Enterprise Value Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Air Canada's Enterprise Value falls into.
Air Canada Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Air Canada's Enterprise Value for the fiscal year that ended in Dec. 2023 is calculated as
* 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) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Air Canada's current Enterprise Value is C$12,488 Mil.
Air Canada's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was C$3,142 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Air Canada's current Enterprise Value is C$12,488 Mil.
Air Canada's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was C$4,845 Mil.
Air Canada's current Enterprise Value is C$12,488 Mil.
Air Canada's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was C$21,833 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 Enterprise Value Related Terms
Thank you for viewing the detailed overview of Air Canada's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Air Canada is Canada's largest airline, generally serving nearly 50 million passengers each year together with its low-cost sub-brand called Rouge and contracts for regional connection flights to its network. Air Canada is a sixth freedom airline, similar to Gulf carriers, which flies many U.S. nationals on long-haul trips with a layover in Canada. In 2022, the company generated CAD 16.6 billion in total revenue, down from CAD 19 billion in 2019 as the airline is still recovering from the pandemic and related travel restrictions.
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