re: why the fall? read the afr Many do not understand the complexities of relevant accounting rules and working out the true value for infrastructure stocks like MAP.
You can't simply compare it to your typical industrial companies.
The way MAP works is linked to the cash flows created by its airports. One must understand the concept of "notional" net operating cash flow! That is worked out by the proportional share of “EBITDA less maintenance capex minus net interest minus cash tax”.
Because it is in MAP's structure to utilize debt in a highly volatile manner, it is obvious that MAP's "net interest liabilities" can seem high, which can make its returns, measured in net cash flow, look weak. But that is not necessarily the case. What it apparently makes (in accounting terms) compared to what it actually makes, is very different.
The AFR artcle didn't mention a lot of important points, and therefore defective and misleading in what it had to say.
re: why the fall? read the afr Many do not understand the...
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