Azul is one of the largest airlines in Brazil, operating in passenger and cargo air transport. Its business model is based on a comprehensive and diversified air network, which connects the country through its three main hubs — Campinas, Belo Horizonte and Recife — to a wide range of destinations, many of them served exclusively by the company. The company operates a flexible and varied fleet, using aircraft of different sizes to adapt capacity to the demand of each route, making it possible to operate in smaller regional markets. In addition to passenger transport, Azul has complementary business units that benefit from its network, such as the cargo logistics division (Azul Cargo Express), the loyalty program (TudoAzul) and the tour package operator (Azul Viagens).
Market capitalization, or "market cap", is the aggregate market value of a company represented in a dollar amount. Since it represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares.
Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company's balance sheet.
The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company's enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. It's also called the enterprise value-to-sales multiple.
The enterprise value to earnings before interest, taxes, depreciation, and amortization ratio (EV/EBITDA) compares the value of a company—debt included—to the company's cash earnings less non-cash expenses. It's best to use the EV/EBITDA metric when comparing companies within the same industry or sector. Typically, when evaluating a company, an EV/EBITDA value below 10 is seen as healthy.
It follows the same logic as the EV/EBITDA indicator, but instead of EBITDA, EBIT is used, which considers non-cash D&A expenses in the company's operating result.
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