ACDVF - Flying High With Air Canada - How It Is Undervalued Compared To American Peers
Overview
We recently decided to take a trip to the dark side of valuation by choosing to value an airline. This gave us the chance to analyse a different sector and best of all play with our first Monte Carlo simulation. The end result of our pricing and valuation exercise, Air Canada (ACDVF) looks cheap compared to its peers (36% upside), and even more undervalued per the model output (67% upside).
A word of warning before we start, in the words of Warren Buffett:
However, we have no ability to forecast the economics