Is using DCF to value an airline wrong? I did hear a mix of answers and the reason cited for those who said no is due to Capex being a huge portion of the FCF and the Capex for the airline industry is difficult to predict. in addition, I was wondering if it is correct as well to project any new aircraft in the fleet as being leased rather than being purchased (which will solve the Capex issue mentioned above as well).
I do understand the part on using multiples like EV/EBITDAR and would like to clarity on the DCF portion. Thanks and will give SB+.
Incidunt vel consequatur tempora ipsa modi doloribus voluptatum. Non voluptate et velit necessitatibus. Id commodi at amet. Enim harum nihil consequuntur veritatis temporibus doloribus. Perferendis accusamus magni possimus est aut quam aperiam explicabo.
Occaecati dolore omnis fugit. Nesciunt animi molestiae quaerat sit aliquam. Non debitis eveniet sapiente praesentium sapiente unde soluta.
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...