| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 99.41 | -11 |
| Intrinsic value (DCF) | 295.06 | 165 |
| Graham-Dodd Method | 0.08 | -100 |
| Graham Formula | 67.93 | -39 |
Aéroports de Paris SA (ADP) is a leading global airport operator headquartered in Tremblay-en-France, France. The company owns and manages approximately 28 airports worldwide, including Paris-Charles de Gaulle, Paris-Orly, and Paris-Le Bourget, which are among the busiest in Europe. ADP operates across multiple segments: Aviation (security and safety services), Retail and Services (duty-free shops, restaurants, and car rentals), Real Estate (commercial and logistics properties), and International and Airport Developments (consulting and management services for global airports). As a key player in the Airlines, Airports & Air Services industry, ADP benefits from stable revenue streams driven by passenger traffic, retail concessions, and real estate leasing. The company plays a crucial role in France's transportation infrastructure and has expanded internationally through partnerships and acquisitions. With a strong focus on sustainability and digital transformation, ADP is well-positioned to capitalize on the recovery of global air travel post-pandemic.
Aéroports de Paris SA presents a mixed investment case. On the positive side, the company benefits from a near-monopoly in the Parisian airport market, diversified revenue streams (aviation fees, retail, real estate), and strong cash flow generation. The rebound in global air travel post-COVID-19 supports growth, and its international expansion provides additional upside. However, risks include high leverage (€10.67B total debt), exposure to economic cycles, and regulatory risks as a partially state-owned entity. The dividend yield (~3.5%) is attractive but could be pressured if travel demand weakens. Investors should weigh the stable infrastructure characteristics against the cyclical nature of the aviation industry.
Aéroports de Paris SA holds a dominant position in the French airport market, operating three major Paris airports that handle over 100 million passengers annually. Its competitive advantages include: (1) High barriers to entry due to the capital-intensive nature of airport operations and limited slots for new competitors in key markets; (2) Diversified revenue streams beyond aviation (retail contributes ~40% of revenue); (3) Strong international presence through consulting and management contracts. However, ADP faces competition from other European hub operators like Frankfurt Airport (Fraport) and London Heathrow (Heathrow Airport Holdings). Unlike some competitors, ADP has less exposure to low-cost carriers, which could be a disadvantage as budget travel grows. The company's real estate portfolio provides a competitive edge in non-aeronautical revenue. Its partnership with Groupe ADP (which owns 50.6%) provides stability but also introduces government-related risks. ADP's scale allows for better retail and service offerings compared to smaller regional airports, but it must continuously invest in modernization to compete with newer Asian and Middle Eastern hubs.