Research on the Investment Value of Guangzhou Baiyun International Airport Based on Multiples Valuation Method

Abstract

Aviation has been an industry that has been widely watched by investors. As the upstream of the civil aviation industry chain, the airport industry is an important core asset of the entire industry chain, providing relevant services for global air transport companies and passengers. In recent years, China's aviation industry has been in a state of steady development. Until the outbreak of COVID-19 in 2020, the market focus turned to the impact of the speed of passenger traffic recovery during the epidemic on the recovery of airport performance. For core hub airports, the priority is whether asset values have changed. This paper analyzes Guangzhou Baiyun International Airport in China, and studies whether the investment value of the airport is fair through financial analysis, peer comparison, and multiple valuation methods. The study found that the airport's overall revenue decline in the past two years was mainly due to the epidemic, but it has performed better compared to industry players. Through multiples valuation, the theoretical stock value of Baiyun Airport in 2021 is 16.19 CNY higher than the actual value. The result indicated that the company's stock was undervalued and has good room for growth in the future, suggesting a purchasing opportunity. It is hoped that the research in this paper can expand the research on related aspects of the private airport industry, and also provide some help and reference for the valuation research of Guangzhou Baiyun International Airport.