MGT414 Financial Modelling Assignment.docx - MGT414...

MGT414 Financial Modelling
West Jet Company Valuation
April 2 nd 2018
Ishaq Halim (1001544242), Alexander Abanto Korneev (1000658497), Liqi Luo (1000700878),
Benchen Shi (1001101899), Zitong Yuan (1001506480)

Highlight
Company Name : West Jet Airlines Limited
Exchange: Toronto Stock Exchange (TSE)
Ticket: WJA
Sector: Airline
Industry: Transportation
Current Price (as of March 20 th 2018): $24.51
Target Price:
Recommendation:

Business Description
West Jet is a Canadian low-cost discount airline which was founded in 1996. It is
currently the second largest airline in Canada after its rival Air Canada. Currently, West Jet offers
more than 100 destinations across the world with its fleet of 126 planes and in the year 2016
carried approximately 22 million passengers. West Jet employs more than 10,000 employees
and operates three hubs in Calgary, Toronto and Vancouver. In Q3 of 2017, West Jet had
grossed more than $1.12 Billion in revenue which is roughly an 8% increase from the previous
quarter. West Jet as of March 20 th , 2018 has total market cap 2.797 Billion dollars and a beta of