Bullboard - Stock Discussion Forum Air Canada T.AC

Alternate Symbol(s): ACDVF

Industrials Airlines

Air Canada is an airline company. The Company is a provider of scheduled passenger services in the Canadian market, the Canada-United States (U.S.) transborder market and the international market to and from Canada. It provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. The Company’s Aeroplan program is Canada's... see more

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TSX:AC - Post Discussion

Air Canada > Book Value Ouch!

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Post by givemeabreak1 on Sep 29, 2021 9:17pm

Book Value Ouch!

US airlines are trading from 3-5 times book value high but OK considering the Pandemic and earning potential.

Air Canada on the other hand, is tading at almost 15 times book value ouch! In theory, if it were
3-5 times AC would be well under $10.

Solidifies my feeling that AC is fully valued!

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Comment by allbeefhooked on Sep 30, 2021 8:48am

Givemeabreak1, “Solidifies my feeling that AC is fully valued!” Your comment brought back fond memories of Albert Brooks’ song from the '70s. It used to be fun watching the female university students break out in tears whenever this song was played at the weekend pub crawl. Be careful about your feelings though when it comes to investing. An informed ...more

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Comment by givemeabreak1 on Sep 30, 2021 9:19am

Allbeef Tell the annalyst at you bank to go back to school lol! Airlines are one of the worst performers as far as invested capiral. If you look at the numbers for the past 10 years throwing the Covid years 2020 and 2021 they are in the low teens not 22 percent. So lets follow history and use a pretty high number for the airline industry at 15% not 22. In reality is is ...more

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Comment by Rouge10 on Sep 30, 2021 9:29am

Partial reading with a negative bias. Net debt Albeef talked about is in 2023.

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Comment by givemeabreak1 on Sep 30, 2021 9:48am

Net debt for 2023 even the more optimistic analyst put it over 6 billion. Remember we are now a year behind on the recovery curve. We are almost in 2022 and AC is still losing money and most analyst project a small net loss for 2022 as well so paying down debt will be a struggle the longer they continue to lose money. Rouge funny how you mention the above but not the using of 22 ...more

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Comment by givemeabreak1 on Sep 30, 2021 11:49pm

All Beef no cheddar! List the last 10 years enterprise value pre-pandemic and tell me which ones had an EV of over $30 Billion lol. Get Rouge to help you on this one! When you are finished that look at the past 10 years of return on invested capital and let us know how many times they hit 22% lol clown! Put a fool and a clown together and you will get no logical anser!

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