How are airline stocks valued?

Airline stocks are primarily valued based on these factors and valuation multiples. Enterprise value-to earnings before interest, taxes, depreciation, amortization, and rent (EV/EBITDAR) is the most common valuation multiple used to value airlines. Analyses also use free cash flow (FCF) yield to analyze airlines.

How much did Singapore Airlines make in a year?

Singapore Airlines said it will monitor these trends closely, and adjust its capacity and network accordingly. The airline reported a net profit of S$734 million ($554.84 million) for the three months ended June 30, compared with S$370 million a year earlier.

Can EV/EBITDAR & free cash flow yield be used to value airline stocks?

Both EV/EBITDAR and free cash flow (FCF) yield can be used to value airline stocks. These metrics, however, should not be used in isolation. Rather they should be compared to prior periods and to peers to determine a stock’s attractiveness.

Will the airline industry be profitable in 2023?

IATA expects that the airline industry will be profitable in 2023 as pent-up travel demand leads to higher airline bookings even as the global economy weakens. Bloomberg cited IATA Director General Willie Walsh, who told a group of airline chiefs in June 2022: “Industry-wide profit should be on the horizon in 2023. We are rebounding.