3 ms·
Taking the defaults Boeing is going to -424 a share. Will check this out again later when I can actually try some sane numbers
by khaki54 2y ago
Taking the defaults Boeing is going to -424 a share. Will check this out again later when I can actually try some sane numbers
- trevzercap 2y agoHi, DCF models are not very effective when a company is cashflow negative. That can result in weird looking values. On the last tab of the model you can switch the exit multiple to look at EV-Sales which will work better on a cashflow negative business like Boeing. Doing this with the model defaults results in a value of $149. Thanks for checking it out!
- mschuster91 2y agoThat's where this company should end up in any fair world, given all the evidence pointing to intentional misconduct and structural governance issues as a cause for multiple fatal crashes and other serious incidents. Snark aside, this may just be a case of Boeing's numbers being distorted by its business model and airlines paying only on delivery of airplanes (which has been seriously cut back due to regulators imposing production stops and caps as a result of all its issues for years now), but Boeing having to pay their vendors upon receipt of parts. Besides, anything aviation is a financial accounting shenanigans party. Many airlines, for example, are "loss leaders" - the money actually comes from their "reward programs" and credit cards [1], a practice that's been going on for decades now [2]. [1] https://www.theatlantic.com/ideas/archive/2023/09/airlines-banks-mileage-programs/675374/ https://www.theatlantic.com/ideas/archive/2023/09/airlines-b... [2] https://airlinegeeks.com/2021/12/17/here-s-why-airline-loyalty-programs-are-profit-machines/ https://airlinegeeks.com/2021/12/17/here-s-why-airline-loyal...