If we look at it from a relative valuation perspective, AIA is currently trading at a Trailing-Twelve-Month EV/EBITDAFI (excluding property revals) of 18.90, while its most direct comparable SYD is trading at a TTM EV/EBITDA of 22.10.
The spread between long-term AUD and NZD government bond yields (20 basis points, as we speak) does not justify that valuation gap, and from a purely fundamental perspective AIA’s market position is unchallenged (for the foreseeable future) by the construction of a second airport, unlike SYD.
So, even from that perspective, the valuation gap looks unjustified to me.
If we were to value AIA at the same EV/EBITDA (excluding financial items) as SYD is currently trading, the implied AIA share price is 7.10A$, 22.4% above the current SP.
And I am by no means suggesting that SYD is currently overvalued, on an absolute basis.
IMHO & DYOR
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Last
$6.92 |
Change
0.150(2.22%) |
Mkt cap ! $10.09B | |||
| Open | High | Low | Value | Volume |
| $6.77 | $6.96 | $6.72 | $9.010M | 1.305M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 2723 | $6.92 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.94 | 1228 | 2 |
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| Last trade - 16.10pm 22/11/2024 (20 minute delay) ? |
| AIA (ASX) Chart |
