DCF Valuation

Aeroports de Paris has delivered a 14.9% total return over the past 5 years, but the market is still pricing the stock at €108.90. The key issue is whether the company's current share price aligns with the intrinsic value suggested by a Discounted Cash Flow model of its future cash generation. The company's airport concession model can influence how efficiently accounting profits turn into cash, which in turn affects any intrinsic value estimate based on those cash flows. The Discounted Cash Flow model values Aeroports de Paris by projecting future free cash flows to equity and discounting them back to today.