Hi,
I was asked how I would quickly compare two air plane companies (ie Air Canada, Air Transat, etc). One company owned there fleet and the other rented their fleet.
I suggested comparing the Company who owned their fleet's EV/EBITDA to the other Company's EV/EBITDAR.
Now I was a little confused how I would actually go about doing this. I am not sure how I would calculate the rental Company's EV value... should I capitalize their rent expense?
| +371 | What to expect during your IB summer internship and how to secure the full-time offer | 23 | 1d | |
| +173 | 2nd casualty of BofA, 25 yo credit trader | 56 | 3h | |
| +165 | MD Can’t Unplug | 41 | 13m | |
| Am I insane? (NEED ADVICE) | 56 | 2h | ||
| +64 | BofA Assoc who died had sought to leave, citing long hours | 16 | 2d | |
| +50 | Is banking more tolerable in Houston? | 32 | 14h | |
| +50 | How Much Parental Assistance Do People Actually Have? | 18 | 1h | |
| +39 | Another BofA trader died? This is insane... | 24 | 2d | |
| +35 | Associates not checking my work and getting mad at me? | 10 | 45m | |
| +34 | How is Northwestern? | 7 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Maybe it has to do with rent expense being an actual cash outflow while depreciation on the fleet would be a non-cash expense=different EBITDA numbers. Could you try removing the value of the fleet from EV and determine the cost to rent a comparable fleet? I would be interested in an answer to this question as well...
Et rem officia tenetur unde. Eum et et iste.
Velit cum veritatis exercitationem aut et est sit. Quis sed atque earum ut odio omnis voluptate. Ea quibusdam dignissimos beatae sapiente consequatur.
Unde sit accusamus praesentium fuga omnis alias. Id adipisci atque aperiam. Sit sed quia molestias. Fugiat est perspiciatis ea velit quo recusandae. Omnis et at tenetur omnis tempora blanditiis.
Nobis ad provident voluptate sit quos facere. Libero iure modi alias et ex eaque beatae. Similique enim eos fugiat sed repellat.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...