RE:Revisiting Air Canada’s 2025 ValuationNice post but the poster does not have a clue! Yes i can run all kinds of numbers showing SP for numberous company valuation of $100 or more but trading at a cool buck! So let us just use common sense in conjunction with the numbers.
So just about all the major airlines in the past year have had the top companies place a valuation on their rewards programs as they are being used as collateral for debt!
So the numbers the poster arrived at are anywhere from 3 to 5 times higher than airlines 2 times or more larger in terms of both revenue and passenger. Actually by passenger about 5 to 10 times higher. So you see the stupidity of the numbers.
Next of course using EBITA is a little foolish as it does not include real world costs. In theory a high debt industry could have relatively strong EBITA but actually make very little money!
Finally, using the same appraisals given to major US airlines rewards programs then factoring in the differential in revenue and shares outstanding it puts a valutation of less than $30 on the share price and that assumes reward programs continue to reward airlines as they have in the past!