Qantas Airways Founded in 1920 the 2nd oldest airline in the world, and the oldest in the English-speaking country In year 2000, Qantas was “The Best Corporate Image” in Australia for 11th consecutive years

Company Profile Nature of Business Domestic and International Air Transportation and Airfreight Qantas Holidays Flight Catering Engineering and Maintenance The Qantas Frequent Flyer Information Technology

Company Valuation Size of Qantas Profitability Analysis Market Capitalisation $ 4.167 billion Value of the firm $ 15 billions Value of equity $ 12 billions Net Debt $ 2.995 billions Profitability Analysis Revenues increase 7.8% Expenditures increase 7% Net Profit before Tax increase 15.1% Operating Profit before Tax increase 17.2% Net Profit after Tax increase 23.0%

Sept 7 Sir Richard Branson’s Virgin Blue starts Brisbane-Sydney Service Source: Bloomberg June 4 Impulse launches Sydney-Melbourne and Sydney-Canberra services Nov 27 Qantas to Impose $10 surchange on domestic routes to counter fuel prices Feb 21 Qantas first-half profit dips 22 pc -First fall since 1995 privatization May 1 Losess forces Impulse to quit major domestic routes

Company Calculation Results Beta = 0.7659028 Cost of Debt = 11.63% Cost of Equity = 10.76% Cost of Capital = 7.12 % Market Capitalization = $ 4,166,043,930 Value of The Firm = $ 15,000,904,132 Value of Equity = $ 12,005,904,132 Price per Share = $ 9.91

Elasticity