We’ve recently updated our valuation analysis.

Air China Valuation

Is 753 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 753?

Other financial metrics that can be useful for relative valuation.

753 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/Revenue5.6x
Enterprise Value/EBITDA-15x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 753's PS Ratio compare to its peers?

The above table shows the PS ratio for 753 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2x
1055 China Southern Airlines
0.9x23.6%HK$148.3b
293 Cathay Pacific Airways
1.1x25.8%HK$53.9b
66 MTR
5.5x10.9%HK$263.3b
1919 COSCO SHIPPING Holdings
0.3x-26.0%HK$180.6b
753 Air China
1.8x32.6%HK$179.5b

Price-To-Sales vs Peers: 753 is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (2x).


Price to Earnings Ratio vs Industry

How does 753's PE Ratio compare vs other companies in the Asian Airlines Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a44.6%
n/an/an/a

Price-To-Sales vs Industry: 753 is good value based on its Price-To-Sales Ratio (1.8x) compared to the Asian Airlines industry average (1.9x)


Price to Sales Ratio vs Fair Ratio

What is 753'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.

753 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: 753 is expensive based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).


Share Price vs Fair Value

What is the Fair Price of 753 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 753 (HK$7.61) is trading below our estimate of fair value (HK$19.6)

Significantly Below Fair Value: 753 is trading below fair value by more than 20%.


Analyst Price Targets

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

The above table shows the analyst 753 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$7.61
HK$7.19
-5.5%
20.7%HK$9.77HK$4.57n/a14
Jan ’24HK$6.95
HK$6.53
-6.1%
28.1%HK$9.45HK$3.46n/a14
Dec ’23HK$6.06
HK$6.05
-0.08%
26.3%HK$8.16HK$3.38n/a15
Nov ’23HK$5.83
HK$5.73
-1.6%
26.8%HK$7.83HK$3.34n/a15
Oct ’23HK$6.00
HK$5.85
-2.5%
27.7%HK$8.27HK$3.47n/a15
Sep ’23HK$6.10
HK$6.07
-0.6%
25.4%HK$8.40HK$3.52n/a15
Aug ’23HK$6.13
HK$6.03
-1.6%
22.9%HK$8.00HK$3.60n/a17
Jul ’23HK$6.82
HK$5.83
-14.5%
23.1%HK$8.05HK$3.60n/a17
Jun ’23HK$5.82
HK$5.93
+1.9%
21.3%HK$8.12HK$3.81n/a17
May ’23HK$5.35
HK$5.99
+12.0%
19.9%HK$8.20HK$4.10n/a18
Apr ’23HK$5.65
HK$6.25
+10.6%
16.4%HK$8.60HK$4.32n/a18
Mar ’23HK$6.06
HK$6.50
+7.2%
15.8%HK$9.30HK$4.35n/a19
Feb ’23HK$5.84
HK$6.29
+7.7%
12.7%HK$7.81HK$4.30n/a18
Jan ’23HK$5.44
HK$6.40
+17.7%
13.9%HK$8.28HK$4.31HK$6.9517
Dec ’22HK$4.95
HK$6.40
+29.2%
13.8%HK$8.27HK$4.30HK$6.0617
Nov ’22HK$5.39
HK$6.79
+26.0%
11.0%HK$8.21HK$5.45HK$5.8316
Oct ’22HK$5.15
HK$6.84
+32.8%
12.0%HK$8.25HK$5.39HK$6.0017
Sep ’22HK$5.26
HK$6.99
+32.9%
11.9%HK$8.25HK$5.39HK$6.1017
Aug ’22HK$4.96
HK$7.27
+46.6%
12.7%HK$8.41HK$5.27HK$6.1316
Jul ’22HK$5.71
HK$7.34
+28.5%
11.8%HK$8.32HK$5.27HK$6.8217
Jun ’22HK$6.23
HK$7.52
+20.7%
12.0%HK$8.52HK$5.33HK$5.8218
May ’22HK$6.16
HK$7.52
+22.1%
10.8%HK$8.40HK$5.40HK$5.3518
Apr ’22HK$6.78
HK$7.37
+8.7%
9.5%HK$8.41HK$6.00HK$5.6519
Mar ’22HK$6.62
HK$7.44
+12.4%
11.5%HK$8.50HK$4.89HK$6.0619
Feb ’22HK$5.50
HK$7.25
+31.8%
9.8%HK$8.55HK$5.84HK$5.8419
Jan ’22HK$6.10
HK$7.29
+19.6%
10.0%HK$8.92HK$6.30HK$5.4419

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies