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Qantas Airways Limited (QAN) Fair Value & Analysis

Industrials · AU · Market cap A$15.7B

QA Qantas Airways Limited QAN · AU
PriceA$10.69
Fair ValueA$13.67
Upside+27.9%
Quality57/100
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Mixed Growth
Thin margins · 6.5% net margin
High debt · generates free cash flow
3.44% dividend yield
Ranks above peers (11/15)
Moderate moat 50/100
Evidence: High Range A$5.81 – A$19.30 Share as image

Fair value as of: Jul 11, 2026

From 23 valuation models · updated 27 days ago

Fair value updated Jul 11, 2026, revised from A$19.72 to A$13.67 (−30.7%) since Jun 24, 2026. Share price +0.8% over the past month.

A solid business, screening 28% undervalued on our models.

What matters now

  • The model range is unusually wide (A$5.81 to A$19.30). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

A$11.56 A$3.94 Fair Value A$13.67 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range A$3.94 – A$11.56 · fair‑value band A$5.81 – A$19.30 · the A$10.69 price screens below the A$13.67 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Qantas Airways Limited (QAN) currently trades at A$10.69, while our model-based Fair Value estimate is A$13.67, implying the stock looks roughly 27.9% undervalued today. We read business quality at 57/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Qantas Airways Limited generated revenue of A$24.6B at a net margin of 6.5%. Revenue grew 6.3% year over year. It earns a return on equity of 153.6%. Net debt stands at A$5.7B. Fundamentals as of Jul 11, 2026

Our scenario range runs from A$5.81 (bear case) to A$19.30 (bull case); at A$10.69, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 35% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 40% fair-value upside, at 28%, QAN screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF A$1.19 A$2.97 80
Residual Income A$2.94 A$5.17 A$128.20 76
Rev-Margin DCF A$15.39 A$29.94 A$46.46 74
All 23 models by family
DCF Models
FCF DCF A$1.31 A$3.44 38
5Y Revenue Exit A$15.39 A$30.39 A$49.98 39
5Y EBITDA Exit A$34.66 A$66.44 A$104.08 41
5Y P/E Exit A$7.50 A$15.63 A$24.25 38
10Y Revenue Exit A$8.91 A$21.30 A$38.64 36
10Y EBITDA Exit A$22.04 A$46.33 A$79.92 37
10Y P/E Exit A$4.72 A$11.06 A$18.99 35
Earnings-Based
Graham-Dodd A$7.21 A$22.42 A$29.82 54
Lynch FV A$4.87 A$6.96 A$9.05 50
PEG = 1.0 A$4.87 A$6.96 A$9.05 46
EPV A$41.17 A$48.46 A$54.84 59
Multiples
P/E Multiple A$15.91 A$21.21 A$26.52 63
P/S Multiple A$13.52 A$18.03 A$22.54 58
P/B Multiple A$1.16 A$1.54 A$1.93 55
EV/EBIT A$66.33 A$89.31 A$112.29 53
EV/EBITDA A$60.15 A$81.06 A$101.98 54
EV/Revenue A$24.95 A$36.75 A$48.56 43
Asset-Based
NCAV (Graham) A$0.2600 A$0.3400 A$0.5100 50
Growth DCF
Growth DCF A$1.19 A$2.97 80
Rev-Margin DCF A$15.39 A$29.94 A$46.46 74
Economic Profit
Residual Income A$2.94 A$5.17 A$128.20 76
ROIC Compounder A$42.00 A$50.38 A$58.36 72
Growth Earnings
Growth-Adj P/E A$13.22 A$18.88 A$24.55 68

Widest divergence: DCF Models (A$21.30) versus Asset-Based (A$0.3400). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) A$24.6B
Revenue growth (YoY) +6.3%
Net margin 6.5%
Return on equity 154%
Free cash flow A$335M FY2025
P/E ratio 8.7
More key figures
Operating margin 11.4%
EPS (TTM) A$1.06
Dividend yield 4.0%
EPS growth (YoY) +2.7%
Net debt A$5.7B FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 54 · Market factors (momentum, volatility) 61

Profitability 65
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 37
Balance sheet, leverage, solvency risk
Investment 45
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 52
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Qantas Airways Limited provides air transportation services in Australia and internationally. The company operates through Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty segments. It offers cargo, passengers, and air freight services; and customer loyalty recognition programs.

Full company description

Qantas Airways Limited provides air transportation services in Australia and internationally. The company operates through Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty segments. It offers cargo, passengers, and air freight services; and customer loyalty recognition programs. The company operates under the Qantas and Jetstar brands. Qantas Airways Limited was founded in 1920 and is headquartered in Mascot, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Qantas Airways Limited reported revenue of A$23.8B in FY2025 versus A$5.4B in FY2021, a compound +45.0%/yr. Reported net income was A$1.6B in FY2025.

Growth Quality 60/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$23.8B
Latest YoY
+10.2%
Avg. growth/yr (3Y)
+39.9%
Avg. growth/yr (5Y)
+11.1%
Avg. growth/yr (31Y)
+4.3%
Revenue +45.0%/yr
FY21 A$5.4B
FY22 A$8.7B
FY23 A$19.5B
FY24 A$21.6B
FY25 A$23.8B
Net income
FY21 −A$1.7B
FY22 −A$860M
FY23 A$1.7B
FY24 A$1.3B
FY25 A$1.6B

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Cite: Fair Value Calculator (2026). "Qantas Airways Limited Fair Value". https://www.fairvalue-calculator.com/stock/QAN

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Airlines · 60 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Top 25%
Fair Value upside +28% · Above median
Return on equity (TTM) 154% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 6% · Below median
Dividend yield (TTM) 3.4% · Above median
Debt / equity 7.91× · Higher than 75% of peers

Valuation Multiples vs Airlines median · lower = cheaper

P/E (TTM) 9.8× · Cheaper than median
P/B 14.27× · Pricier than 75% of peers
P/S (TTM) 0.45× · Cheaper than median
P/FCF 33.1× · Pricier than 75% of peers
EV/EBITDA 3.5× · Cheaper than 75% of peers
PEG 0.40× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 71 · sector 36
FUTURE 32 · sector 46
PAST 100 · sector 46
HEALTH 0 · sector 72
DIVIDEND 69 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Airlines stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Delta Air Lines, Inc DAL $84.17 $118.24 +40%
United Airlines Holdings UAL $120.97 $175.62 +45%
Ryanair Holdings RYA €25.47 €41.26 +62%
Southwest Airlines Co LUV $47.56 $14.76 -69%
InterGlobe Aviation Limited INDIGO ₹5,249 ₹3,704 -29%
Singapore Airlines Limited C6L 7.60 SGD 7.89 SGD +4%
Air China Limited 601111 ¥5.97 ¥7.16 +20%
LATAM Airlines Group LTM $54.87 $106.79 +95%
Deutsche Lufthansa AG 1LHA €8.57 €15.42 +80%
China Southern Airlines Company 600029 ¥4.99 ¥1.28 -74%

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Frequently asked questions

Is Qantas Airways Limited (QAN) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of A$13.67 versus a price of A$10.69, about +28% (undervalued).
What is the fair value of QAN?
Our model-based fair value for Qantas Airways Limited is A$13.67 (as of Jul 11, 2026), built from audited fundamentals. The current price is A$10.69.
What is the quality score of QAN?
Qantas Airways Limited has a Quality Score of 57/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Qantas Airways Limited (QAN)?
Qantas Airways Limited reported trailing-twelve-month revenue of about A$24.6B (latest available figure, as of Jul 11, 2026).
What is the net profit margin of QAN?
The net profit margin of Qantas Airways Limited is about 6.5%, meaning it keeps roughly 6.5% of revenue as net income. Based on the latest reported figures.
Does Qantas Airways Limited pay a dividend?
Qantas Airways Limited currently shows a dividend yield of about 3.97% relative to its recent price (as of Jul 11, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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