The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Air Canada's share price is $14.645.
Air Canada's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $43.64. Hence, Air Canada's PS Ratio for today is 0.34.
The historical rank and industry rank for Air Canada's PS Ratio or its related term are showing as below:
ACDVF'
s PS Ratio Range Over the Past 10 Years
Min: 0.05 Med: 0.37 Max: 3.02
Current: 0.34
During the past 13 years, Air Canada's highest PS Ratio was 3.02. The lowest was 0.05. And the median was 0.37.
ACDVF's PS Ratio is ranked better than 82.22% of 973
companies
in the Transportation industry
Industry Median: 0.96
vs ACDVF: 0.34
Air Canada revenue per share has been in decline for the last 5 years.
During the past 12 months, the average Revenue per Share Growth Rate of Air Canada was 25.60% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 41.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was -5.50% per year.
During the past 10 years, the average Revenue per Share Growth Rate was -2.70% per year.
During the past 13 years, Air Canada's highest 3-Year average Revenue per Share Growth Rate was 41.10% per year. The lowest was -34.60% per year. And the median was 2.70% per year.
Back to Basics: PS Ratio
Air Canada PS Ratio Historical Data
The historical data trend for Air Canada's PS Ratio 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 PS Ratio, along with its competitors' market caps and PS Ratio 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 PS Ratio Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's PS Ratio distribution charts can be found below:
* The bar in red indicates where Air Canada's PS Ratio falls into.
Air Canada PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Air Canada's Share Price of today is $14.645. Air Canada's Revenue per Share 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 $43.64.
* 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.
It can also be calculated from the numbers for the whole company:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Air Canada PS Ratio Related Terms
Thank you for viewing the detailed overview of Air Canada's PS Ratio 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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