Ceiling Unlimited: A Valuation & Strategic Appraisal of Edmonton International Airport (YEG)

Valuation of Crown Corporations, Airports, Crown Corporations, Ian Madsen


Edmonton International Airport (EIA), symbol YEG, is the airport serving metropolitan Edmonton, domestically and internationally. Its market area is far larger, comprising central and northern Alberta, eastern British Columbia, and western Saskatchewan. It is a non-profit entity officially known as the independent Edmonton International Airport, which is managed autonomously, and ultimately owned by the federal government.

Using an intrinsic value method, with free cash flow taxed at statutory rates, the entity’s value is estimated from a minimum of $0.43B to a maximum of $1.51B, with a tighter, more plausible range of a median (midpoint of all the relevant values) of $0.68B to a mean (simple average of all the relevant values) of $0.75B.
Under the market-based valuation system, using five standard valuation metrics (P/E, P/Sales, EV/EBITDA, P/CF: trailing Price/Earnings, Price/Sales; Price/Book Value; Enterprise Value to Revenue; Enterprise Value to Earnings Before Interest, Taxes & Depreciation & Amortization; Price/Operating Cash Flow), the current value ranges from $50M to $1.47B, with a mean of $0.88B and a median of $1.17B.

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