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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Post by Nordicoon Jan 17, 2023 11:52pm
610 Views
Post# 35229755

Valuation

Valuation
So with the updated financials known, we're currently trading at a valuation multiple of 4.9x 2022 EBITDA at today's close. Textron - the only comparable listed issuer - currently trades at 11x. When BBD closes this gap and trades @ 11x 2022 EBITDA, the SP will be $144.

That said, Textron's earnings growth is much slower than BBD's is (and will be through 2025, thanks to all of the service center capacity coming online, defense expansion, etc.) so BBD deserves a multiple higher than 11x as it clears off more debt. At say, 15x 2022, BBD would trade at $200. I don't think such a valuation multiple is unattainable if Bomber continues producing impressive results every quarter. We have a lot of room to run over the next two years.
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