2. 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

3. 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

4. Company Valuation Size of Qantas Profitability Analysis
Market Capitalisation $ billion
Value of the firm $ 15 billions
Value of equity $ 12 billions
Net Debt $ 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%

5. 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

6. Company Calculation Results
Beta =
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

7. Elasticity