RE:RE:RE:RE:RE:RE:RE:RE:RE:I predict early buyout of Cseries....How is value assessed? Is it net earnings x 4 or 5 years? I’m sure that’s an over simplification... I’m using kindergarten math. But that comes to $3.5-4.5b
bicente wrote: Very good assessment, I would place the whole deal at 5 Billion at this time and growing ... the Boeing fiasco will get worse and the CSeries will be worth much more once start-up the costs are paid for and the suppliers have been negotiated down ... AB has the latest and greatest for many years to come and it is only gaining in value ... the legacy projects are being dealt with and the next big value will be in the developments on the CSeries platform ... GLTA
quote=CanInf]OK, let's remember we are talking for both Belfast AND The rest of the A220 program. Now Belfast it sesms is worth about 1 billion. So let's look at the A220. What is it worth? Well first off there is the development cost which runs at about 5 billion. It is rather handy to simply buy the aircraft than having to go the difficult and danegrous devleopment. But then there is the avoidance of risk. It is one thing to sink 5 billion into the development of a plane without a large customer base. It is quite another to buy a going concern. The A220 has a happy customer base, growing orders, and tech advantage. Meanwhile the main competitors enjoy none of those three. In fact, customers are kind of miffed at Embraer and Boeing products at the moment. Time is the other thing I would like to point out. It takes time to get regulatory approvals. The A220 has them. The Max, oddily enough, does not. Is the BBD portion of the A220 worth 3 Billion? Yup easily. It is a going concern. It is well ahead of competitors and nothing else is on the drawing board that could compete. AB would have a lock on thousands of aircraft for the next 15 years. 3 billion? ohh yes. The question that faces AB is wherher 3 billion or so now is a better deal than fair market value in 7 years? My suspicion is that 3 billion now will look cheap next year and just ludicrous in 2022. Eiather way, the Bomber wins.
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