Is CPCAF Stock Undervalued?

A comprehensive valuation analysis of Cathay Pacific Airways Limited (CPCAF) examining current multiples, intrinsic value, and comparing to analyst expectations.

Updated January 21, 2026•8 min read•View Full Analysis

Valuation Verdict

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Potentially Undervalued

9991117549546.9% upside potential

Based on our analysis, Cathay Pacific Airways Limited appears to be potentially undervalued at the current price of $1.22. Our fair value estimate of $121891634105.69 suggests upside potential of approximately 9991117549546.9%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing CPCAF relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio

6.78

Low

P/B Ratio

1.19

Moderate

P/S Ratio

0.07

Low

EV/EBITDA

9.16

Low

Understanding the Metrics

P/E Ratio: At 6.78x earnings, CPCAF is trading below the typical market average of 15-20x.
P/B Ratio: A P/B of 1.19 means investors pay $1.19 for every $1 of book value.
P/S Ratio: The price-to-sales ratio of 0.07 indicates how much investors value each dollar of revenue.
EV/EBITDA: This ratio of 9.16 helps compare CPCAF to peers while accounting for debt.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Cathay Pacific Airways Limited stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price

$1.22

Fair Value Estimate

$121891634105.69

Implied Return+9991117549546.9%

Our DCF model suggests CPCAF may be undervalued by approximately 9991117549546.9%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Cathay Pacific Airways Limited (CPCAF) appears to be undervalued at $1.22. With a fair value estimate of $121891634105.69, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.