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Qantas Airways Ltd (QAN) Fair Value & Analysis

Industrials · AU · Market cap A$15.7B (≈ $11.3B) · ISIN AU000000QAN2

What is Qantas Airways Ltd really worth?

QA Qantas Airways Ltd QAN · AU
PriceA$9.39
Fair ValueA$13.67
Upside+45.6%
Quality55/100

A solid business, trading 31% below our fair value of A$13.67.

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Strengths

Ranks above peers (11/15)

Risks

!Mixed Growth (revenue 5y +11.1 %/yr)
!Thin margins · 6.5% net margin
!High debt · generates free cash flow
!Moderate moat 50/100
!The models disagree: range A$5.81 to A$22.90

For context

·3.87% dividend yield
Evidence: High Range A$5.81 – A$22.90

Fair value as of: Aug 22, 2026

From 23 valuation models · updated 14 days ago

Fair value updated Aug 22, 2026, revised from A$19.72 to A$13.67 (−30.7%) since Aug 13, 2026. Share price −9.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide (A$5.81 to A$22.90). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

A$11.56 A$3.94 Fair Value A$13.67 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range A$3.94 – A$11.56 · fair‑value band A$5.81 – A$22.90 · the A$9.39 price screens below the A$13.67 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

Qantas Airways Ltd (QAN) currently trades at A$9.39, while our model-based Fair Value estimate is A$13.67, implying the stock looks roughly 31.3% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of A$19.70 per share, and 15 of the 23 models we run sit above the A$9.39 price. Bear case: the Economic Profit group reads lowest at A$5.17, and 8 of the 23 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Qantas Airways Ltd 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 Aug 22, 2026

Our scenario range runs from A$5.81 (bear case) to A$22.90 (bull case); at A$9.39, 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 22% below its 52-week high and 19% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at 45% fair-value upside, at 46%, QAN screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly A$0.6970 per share, which is 5.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence A$1.30 A$3.42 77
Growth DCF A$1.18 A$2.95 75
EPV A$7.01 A$8.61 A$10.01 74
All 23 models by family
DCF Models
FCF DCF best evidence A$1.30 A$3.42 77
5Y Revenue Exit A$6.43 A$13.62 A$22.98 70
5Y EBITDA Exit A$13.94 A$27.66 A$43.88 73
5Y P/E Exit A$7.95 A$16.47 A$25.48 69
10Y Revenue Exit A$3.64 A$9.65 A$18.01 63
10Y EBITDA Exit A$8.83 A$19.40 A$33.95 65
10Y P/E Exit A$5.01 A$11.63 A$19.92 61
Earnings-Based
Graham-Dodd A$7.21 A$22.34 A$29.70 65
Lynch FV A$4.84 A$6.92 A$8.99 61
PEG = 1.0 A$4.84 A$6.92 A$8.99 57
EPV A$7.01 A$8.61 A$10.01 74
Multiples
P/E Multiple A$16.71 A$22.27 A$27.84 63
P/S Multiple A$13.52 A$18.03 A$22.54 58
P/B Multiple A$1.74 A$2.31 A$2.89 55
EV/EBIT A$15.80 A$21.93 A$28.07 66
EV/EBITDA A$24.43 A$33.44 A$42.46 67
EV/Revenue A$10.53 A$16.16 A$21.79 53
Asset-Based
NCAV (Graham) A$0.2600 A$0.3400 A$0.5100 54
Growth DCF
Growth DCF A$1.18 A$2.95 75
Rev-Margin DCF A$6.43 A$13.43 A$21.38 70
Economic Profit
Residual Income A$2.94 A$5.17 A$128.20 64
ROIC Compounder A$7.61 A$10.08 A$12.79 72
Growth Earnings
Growth-Adj P/E A$13.79 A$19.70 A$25.61 67

Widest divergence: Growth Earnings (A$19.70) versus Asset-Based (A$0.3400). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 8.9
P/S ratio 0.60 P/E × margin
EPS (TTM) A$1.06 price ÷ EPS = P/E 8.9
Dividend yield 3.9% payout 34.2%
Net margin 6.7% FY2025
Return on equity 154% TTM
More key figures
Profitability
Return on assets (EBIT) 7.4% avg 5y
Operating margin 11.4% TTM
Growth
Revenue (TTM) A$24.6B TTM
Revenue growth (YoY) +6.3% 3y avg +39.9%
EPS growth (YoY) +2.7%
Balance sheet & cash flow
Free cash flow A$335M FY2025
Net debt A$5.7B FY2025 · ≈ 17.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 54 · Market factors (momentum, volatility) 48

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 79
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 27
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 Ltd 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. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+39.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.1%
Avg. revenue growth/yr (31Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+17.7% (13.8 + 3.9)
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
Character of growth · EPS growth decomposed (2015-2025) +10.8 % p.a.
Revenue per share +6.5 %

of which total revenue +3.9 % · buybacks/dilution +2.5 %

EBIT margin +12.7 %
Tax rate −0.4 %
Residual (interest, one-offs) −7.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Qantas Airways Ltd 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 · 57 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 55 · Top 25%
Fair Value upside +46% · 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) 3.9% · Above median
Debt / equity 7.91× · Higher than 75% of peers

Valuation Multiples vs Airlines median · lower = cheaper

P/E (TTM) 8.9× · Cheaper than median
P/B 14.58× · Pricier than 75% of peers
P/S (TTM) 0.46× · Cheaper than median
P/FCF 33.9× · Pricier than 75% of peers
EV/EBITDA 3.5× · Cheaper than 75% of peers
PEG 0.40× · Cheaper than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE94 · sector 53
FUTURE32 · sector 51
PAST100 · sector 48
HEALTH0 · sector 69
DIVIDEND77 · sector 48

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

Similar stocks

10 more Airlines stocks, each showing price versus our Fair Value estimate (as of Aug 22, 2026).

Stock Price Fair Value vs Fair Value
Delta Air Lines, Inc DAL $80.07 $115.82 +45%
United Airlines Holdings UAL $110.60 $175.62 +59%
Ryanair Holdings RYA €25.47 €41.26 +62%
Southwest Airlines Co LUV $38.73 $14.76 −62%
InterGlobe Aviation Limited INDIGO ₹5,166 ₹3,073 −41%
Singapore Airlines Limited C6L 7.09 SGD 7.89 SGD +11%
Air China Limited 601111 ¥5.94 ¥7.16 +21%
LATAM Airlines Group LTM $52.50 $106.79 +103%
China Southern Airlines Company 600029 ¥5.08 ¥1.28 −75%
Deutsche Lufthansa AG LHA €7.99 €18.94 +137%

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Frequently asked questions

Is Qantas Airways Ltd (QAN) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of A$13.67 versus a price of A$9.39, about +46% upside (undervalued).
What is the fair value of QAN?
Our model-based fair value for Qantas Airways Ltd is A$13.67 (as of Aug 22, 2026), built from audited fundamentals. The current price: A$9.39.
What is the quality score of QAN?
Qantas Airways Ltd has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Qantas Airways Ltd (QAN)?
Qantas Airways Ltd reported trailing-twelve-month revenue of about A$24.6B (latest available figure, as of Aug 22, 2026).
What is the net profit margin of QAN?
The net profit margin of Qantas Airways Ltd is about 6.5%, meaning it keeps roughly 6.5% of revenue as net income. Based on the latest reported figures.
Does Qantas Airways Ltd pay a dividend?
Qantas Airways Ltd currently shows a dividend yield of about 3.87% relative to its recent price (as of Aug 22, 2026).
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