Enterprise Value (EV) - Aviation
Hallo, quick question....when I looked at the latest Aviation transaction presentation (link below)...it shows a net debt number of $2.5B post the Alstom transaction.
Also, when I looked at the Q2 net debt slide (slide 5), there is no mentioning of the the Spirit deal in their cashflow forecast...only CRJ was included.
So, assuming status quo, forward annual aviation EBITDA of ~$400M and a WACC of circa 10%, the EV should be worth ~$4Billion....minus ~$2.5B net debt, it equates to $1.5B equity...that is double today's market cap....
...could someone please tell me what I might be missing? Why are we trading at >50% of deemed market value if the Aviation section's equity value is double what it is today?
Links are:
https://ir.bombardier.com/modules/misc/documents/12/08/03/02/16/Focusing-on-Business-Aviation_EN.pdf
https://ir.bombardier.com/modules/misc/documents/07/48/80/01/16/Bombardier-Q2-2020-Presentation-20200806-en.pdf