Azul Valuation

Is 8AZA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 8AZA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8AZA (€2.36) is trading below our estimate of fair value (€3.1)

Significantly Below Fair Value: 8AZA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8AZA?

Key metric: As 8AZA is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 8AZA. This is calculated by dividing 8AZA's market cap by their current revenue.
What is 8AZA's PS Ratio?
PS Ratio	0.09x
Sales	R$18.89b
Market Cap	R$1.73b

8AZA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	25.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 8AZA's PS Ratio compare to its peers?

The above table shows the PS ratio for 8AZA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.7x
LHA Deutsche Lufthansa	0.2x	3.9%	€7.3b
PM1 Wilson	1x	n/a	€258.8m
HVB ÜSTRA Hannoversche Verkehrsbetriebe	1.5x	n/a	€248.2m
3WB Waberer's International Nyrt	0.2x	9.8%	€157.0m
8AZA Azul	0.09x	10.5%	€1.7b

Price-To-Sales vs Peers: 8AZA is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

How does 8AZA's PS Ratio compare vs other companies in the European Airlines Industry?

7 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.6x	5.4%
8AZA Azul	0.09x	10.5%	US$297.81m

7 Companies		Estimated Growth	Market Cap
Industry Avg.	0.6x	9.3%
8AZA Azul	0.09x	107.0%	US$297.81m

No more companies

Price-To-Sales vs Industry: 8AZA is good value based on its Price-To-Sales Ratio (0.1x) compared to the Global Airlines industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is 8AZA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8AZA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.09x
Fair PS Ratio	0.4x

Price-To-Sales vs Fair Ratio: 8AZA is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.