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+.
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