Select Page
QuestionsCategory: Investor PsychologyIs airport business considered recurring in nature?
alexyeo asked 3 years ago

Hi trainers,
Have been looking at airport business recently as Mr Market is feeling quite depressed lately. Airline biz are notoriously cutthroat, but how about airport biz? Heard from friends, our Changi Airport Group is doing well..so that led to me wondering what about airport biz around the world? There are some listed airports in Australia, China and Hong Kong markets. Wondering what kind of valuation would be reasonable? Can we use PE to evaluate them? Can airport biz be considered as recurring in nature and predicable?

Jieren Zheng replied 3 years ago

If I am not wrong, we are one of the few that have profitable airports.

1 Answers
Victor Chng answered 3 years ago

Hi Alex,
 
I think those services such as managing the airport or food catering to the plane are more recurring in nature.
 
For the valuation, it is depend on the individual company PE range that you have to plot out.