Air New Zealand Limited

NZSE:AIR Stock Report

Mkt Cap: NZ$2.6b

We’ve recently updated our valuation analysis.

Air New Zealand Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 AIR?

Other financial metrics that can be useful for relative valuation.

AIR 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/Revenue1.5x
Enterprise Value/EBITDA-12.4x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for AIR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average14.8x
POT Port of Tauranga
11.5x5.1%NZ$4.3b
FRE Freightways
1.9x12.6%NZ$1.7b
AIA Auckland International Airport
43.3x22.9%NZ$12.6b
THL Tourism Holdings
2.4x19.2%NZ$834.7m
AIR Air New Zealand
1x12.5%NZ$2.6b

Price to Earnings Ratio vs Industry

How does AIR's PE Ratio compare vs other companies in the Global Airlines Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a36.9%
 n/an/an/a

Price to Sales Ratio vs Fair Ratio

What is AIR'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.

AIR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: AIR is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

Share Price vs Fair Value

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

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 AIR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNZ$0.79
NZ$0.81
+3.8%
10.2%NZ$0.97NZ$0.70n/a6
Jan ’24NZ$0.74
NZ$0.81
+9.4%
10.2%NZ$0.97NZ$0.70n/a6
Dec ’23NZ$0.79
NZ$0.76
-3.2%
7.2%NZ$0.85NZ$0.70n/a6
Nov ’23NZ$0.79
NZ$0.76
-3.6%
7.5%NZ$0.85NZ$0.70n/a6
Oct ’23NZ$0.71
NZ$0.75
+4.4%
8.9%NZ$0.85NZ$0.66n/a6
Sep ’23NZ$0.68
NZ$0.69
+1.5%
11.9%NZ$0.85NZ$0.60n/a6
Aug ’23NZ$0.62
NZ$0.68
+10.2%
18.3%NZ$0.95NZ$0.60n/a6
Jul ’23NZ$0.58
NZ$0.72
+23.9%
18.6%NZ$0.95NZ$0.60n/a4
Jun ’23NZ$0.64
NZ$0.76
+19.1%
14.9%NZ$0.95NZ$0.65n/a4
May ’23NZ$0.89
NZ$0.85
-4.0%
18.6%NZ$1.05NZ$0.65n/a4
Apr ’23NZ$1.27
NZ$0.95
-24.9%
19.7%NZ$1.15NZ$0.65n/a4
Mar ’23NZ$1.55
NZ$1.08
-30.2%
36.4%NZ$1.80NZ$0.66n/a5
Feb ’23NZ$1.47
NZ$1.13
-23.1%
36.4%NZ$1.90NZ$0.75NZ$0.795
Jan ’23NZ$1.51
NZ$1.16
-23.2%
35.5%NZ$1.90NZ$0.75NZ$0.745
Dec ’22NZ$1.52
NZ$1.17
-22.8%
34.5%NZ$1.90NZ$0.75NZ$0.795
Nov ’22NZ$1.65
NZ$1.17
-28.9%
34.5%NZ$1.90NZ$0.75NZ$0.795
Oct ’22NZ$1.65
NZ$1.19
-27.7%
34.0%NZ$1.90NZ$0.75NZ$0.715
Sep ’22NZ$1.54
NZ$1.19
-22.5%
34.0%NZ$1.90NZ$0.75NZ$0.685
Aug ’22NZ$1.50
NZ$1.24
-17.3%
35.1%NZ$2.00NZ$0.75NZ$0.625
Jul ’22NZ$1.57
NZ$1.26
-19.7%
34.2%NZ$2.00NZ$0.75NZ$0.585
Jun ’22NZ$1.65
NZ$1.32
-19.9%
33.4%NZ$2.00NZ$0.71NZ$0.645
May ’22NZ$1.74
NZ$1.33
-23.4%
32.8%NZ$2.00NZ$0.71NZ$0.895
Apr ’22NZ$1.73
NZ$1.36
-21.2%
31.2%NZ$2.00NZ$0.65NZ$1.276
Mar ’22NZ$1.60
NZ$1.36
-14.8%
31.2%NZ$2.00NZ$0.65NZ$1.556
Feb ’22NZ$1.63
NZ$1.32
-19.2%
38.8%NZ$2.00NZ$0.65NZ$1.476

Discover undervalued companies