If we look at it from a relative valuation perspective, AIA is...

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