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Air China Ltd
SSE:601111

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Air China Ltd
SSE:601111
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Price: 6.72 CNY 0.9% Market Closed
Market Cap: ¥119.9B

EV/GP

33.8
Current
1%
Cheaper
vs 3-y average of 34.2

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
33.8
=
Enterprise Value
¥301.7B
/
Gross Profit
¥8.8B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
33.8
=
Enterprise Value
¥301.7B
/
Gross Profit
¥8.8B

Valuation Scenarios

Air China Ltd is trading below its 3-year average

If EV/GP returns to its 3-Year Average (34.2), the stock would be worth ¥6.79 (1% upside from current price).

Statistics
Positive Scenarios
2/3
Maximum Downside
-60%
Maximum Upside
+17%
Average Downside
14%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 33.8 ¥6.72
0%
3-Year Average 34.2 ¥6.79
+1%
Industry Average 39.6 ¥7.88
+17%
Country Average 13.6 ¥2.7
-60%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Higher than 80% of companies in China
Percentile
80th
Based on 6 967 companies
80th percentile
33.8
Low
0 — 8
Typical Range
8 — 23.3
High
23.3 —
Distribution Statistics
China
Min 0
30th Percentile 8
Median 13.6
70th Percentile 23.3
Max 17 898 541.1

Air China Ltd
Glance View

Market Cap
119.9B CNY
Industry
Airlines

Air China Ltd., founded in 1988, is not just any airline—it’s a key player in China's aviation tapestry and the world, carrying with it the prestige of being one of the largest air carriers in the nation. With its headquarters stationed in the bustling city of Beijing, Air China thrives in the heart of the economic powerhouse that is China. The company operates through both passenger and cargo segments, weaving a complex network of routes that connect China to the farthest reaches of the globe. By leveraging Beijing Capital International Airport, one of the busiest airports in the world, as its main hub, Air China taps into the constant flow of travelers and goods, capitalizing on China's increasing significance in international trade and travel. The airline's business model is intricately designed around a traditional hub-and-spoke system, maximizing route efficiency and connectivity. This allows Air China to harness economies of scale, optimizing fleet utilization and scheduling to meet the surging demands of both international and domestic travelers. Revenue streams extend beyond just ticket sales; the company also dips into various ancillary services, loyalty programs, and an expansive cargo division. With its strategic partnerships through codesharing agreements and membership in the Star Alliance – the first and largest global airline alliance – Air China not only expands its international footprint but also enhances its proposition as a competitive and trusted global carrier. In the rapidly evolving airline industry, Air China positions itself as a beacon of steady growth, navigating through the skies of uncertainty with a keen focus on modernization and customer satisfaction.

Intrinsic Value
12 CNY
Undervaluation 44%
Intrinsic Value
Price ¥6.72
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