Flying High or Grounded? Market Valuation of Air Canada through Financial Ratios and Stock Analysis
This paper investigates how Air Canada’s financial ratios and stock performance from 2022 to 2024 reflect investor confidence during the airline’s post-pandemic recovery. It focuses on key metrics such as the price-to-earnings (P/E) ratio, market-to-book ratio, and operating data. While financial performance improved significantly in 2023, valuation metrics in 2024 suggest renewed investor caution, possibly due to fuel cost volatility and international demand weakness. This paper uses comparative analysis with WestJet and incorporates CAPM to assess investor sentiment and valuation accuracy. Additional insights are incorporated through a profitability, liquidity, and solvency analysis for the 2020–2023 period to contextualize financial health during Air Canada’s recovery.
Authors
- Wayne Yu (ORCID: https://orcid.org/0000-0002-9764-0690)
Institutions
- Brock University (CA)
Publication Details
- Journal
- Highlights in Business Economics and Management
- Published
- 2025-09-04
- DOI
- https://doi.org/10.54097/8ty7s286
- Primary Topic
- Aviation Industry Analysis and Trends
- Type
- article
- Field-Weighted Citation Impact
- 0.00