A Driver-Based Approach to Airport Valuation

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Hans-Arthur Vogel
Anne Graham


Airport Benchmarking, Valuation, Performance, Finance, Privatisation, Europe


This paper presents the first part of results of extensive research on an alternative concept to airport valuation. It reviews raditional and alternative valuation measures, illustrated by a sample of eight publicly quoted European airports. The main objective is to derive a model taking account of the underlying key value drivers.
A peer group analysis shows that only few sector multiples applied by the investors’ community are significantly correlated with key performance indicators based on business fundamentals. By contrast to the results of this alternative driver-based valuation approach, these market multiples are affected by stock market fluctuations and do not adequately reflect the financial position and true value, and hence supports this paper’s view that airports should be valued by recognising key success factors.


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