Easyjet Share Discussion Threads

[danvandan] 25/11/2021 11:58

Basic arithmetic suggests a £4.2bn market cap is very high for EZJ. It was only £5.2bn in January 2020 when the share price peaked at £15.00. Two rights issues later there's now twice as many shares. £5.60 is equivalent to £11.20 in 2019 which is only about 25% down from the shares when they peaked massively BEFORE covid arrived.

Several other things you might want to bear in mind when valuing EZJ; the business has at least £1bn more debt than it had in 2019 and is making NO PROFIT. The debt pushes the enterprise value of the business easily up to where it was in 2019 (market capitalisation plus debt, minus cash) and this valuation is imv much too high considering that EZJ's immediate prospects are now very different to what they were in January 2020.

Back then, EZJ made £350m annual profit, had low debt, paid dividends and was a relatively stable low margin business. NOW it makes no profit, has massive debt, will pay NO DIVIDENDS for years while it tries to pay down its debt, and will make NO PROFIT this year, and probably next year too. Even 2023 is a big unknown - I'd hope covid will be over by then, but most people thought last year that it would be over by now.

So keeping all of that in mind, what exactly are you proposing as a 'low' market cap for EZJ? IMV it's already far too high and should be at most, half of its current level, probably around £2.80. When the results are out on Tuesday, all of the analysts on this share will be compelled to revise their targets down and the share price will take a massive tumble.

[danvandan] 25/11/2021 11:42

topaz, you think £4.2bn market cap is low for EZJ compared to what?

[m1k3y1] 25/11/2021 11:41

British Airways Pilots and Cabin Crew Imprisoned in Hong Kong COVID Camp

[topazfrenzy] 25/11/2021 11:27

£4 bn market cap seems pretty low imo

GLA

[topazfrenzy] 25/11/2021 11:19

Back in with a small position

[clocktower] 24/11/2021 11:38

arja, it is not only a case of the number infected, it is the number needing hospital care and deaths.

If we recorded the numbers with colds every year, I would not be surprised too see the UK has the highest figures over many years, due to our climate and the way the British brush it off and just get on with it, unlike many European's.

[mallorca 9] 24/11/2021 11:21

I will be flying Easyjet in the spring, however I will be using the vouchers that I was issued this year when 2021 was cancelled.

There must be lots of others also booking 2022 using vouchers - so cash flow may continue to be a big problem in 2022.

[arja] 24/11/2021 09:31

mucho,
you send a link showing France's daily rate incresing but still less than half the rate in uk ! we are still near top of tree for cases ,
EZJ in a clear chart downtrend and likely to fall further before the eventual recovery

[muchodinero] 21/11/2021 21:19

It’s all okay our great leader thinks Covid is done and dusted in UK? Not sure the same can be said in the rest of Europe?



hxxps://news.sky.com/story/covid-19-mandatory-coronavirus-vaccines-in-germany-unavoidable-says-countrys-tourism-commissioner-12474803

[m1k3y1] 19/11/2021 16:03

Austria has lowest vaccination take up in europe.
This is of their own doing.
UK deaths due to covid is at 66 !

Let's stop the scare mongering.

[muchodinero] 19/11/2021 15:50

Not looking good for European travel as Covid 19 epidemic becomes resurgent across Europe, looking worryingly that we will be back to square one within weeks and more lockdown coming here potentially , as we’re seeing across mainland Europe?

[rocketblast] 19/11/2021 12:48

EZJ testing 500p then further falls below 430p. Very Risky with tough Winter. May go back to shareholder for more cash then below 400p even 350p or even 300p likely. Disaster EZJ

[loganair] 19/11/2021 12:31

Johns Hopkins "Covid isn't going away in 2022."

[gettingrichslow] 19/11/2021 12:29

Who was that muppet on here who declared the pandemic was ‘over’ about a year ago? I did try to warn him but to no avail. Absolute carnage here for the share price I’m afraid.

[m1k3y1] 19/11/2021 11:55

Sky News
Ryanair takes flight from London listing in post-Brexit snub to UK financial centre

[loganair] 19/11/2021 11:22

Easyjet seems to be more worried about being "Sustainable" and "Green" rather then being as profitable as possible and running the airline at as lower cost as possible.

[primarch1] 19/11/2021 11:00

Europe lockdowns I guess

[laptop15] 19/11/2021 10:31

Geez this this getting bashed today...lockdown worries or what?? Anyone know why is dropping so sharp

[loganair] 19/11/2021 10:12

Easyjet is reportedly to be by far the weakest player both in their financial well being and their cost of operations out of Ryanair, Wizz, Jet2 and Easyjet.

[panshanger1] 19/11/2021 10:10

New 52 week low as Europe lockdowns bite Still when this bottoms ( doesn't someone ring a bell ) it might represent a great entry point for the long term investor

[loganair] 19/11/2021 10:09

Just for interest:


Ryanair to delist shares from the London Stock Exchange - The Irish budget airline said it planned to apply to authorities to cancel its listing on the main market in London “as the volume of trading of the Shares on the London Stock Exchange does not justify the costs related to such listing and admission to trading.”

Ryanair first flagged it was considering delisting at the start of the month. The company said trading on the LSE has “reduced materially” as a percentage of its overall shares activity during 2021.

Russ Mould, AJ Bell investment director, said: “For a business with a razor sharp focus on costs it seems the expense of maintaining a UK listing just doesn’t stack up any more given a decline in trading volumes and so Ryanair is planning a pre-Christmas getaway.

Delisting will take affect in London from 20 December.

The move is a blow for the London Stock Exchange. Ryanair is among the largest airlines on the main market, with a value of £18.4 billion.

[taurusthebear] 18/11/2021 15:13

When are they opening the unvaxed concentration camps?