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  "documentTitle": "2024 10 Capital Markets Day",
  "authorId": "Wizz-Air",
  "authorName": "Wizz Air",
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  "notes": "The slide uses a valuation model to demonstrate the potential equity uplift from improving credit metrics.",
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      "text": "ILLUSTRATIVE",
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      "text": "Assuming a funding structure similar to its peer group, Wizz Air should be able to achieve ~€1.6bn in incremental equity valuation",
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      "text": "Wizz Air currently funds itself at a cost of debt which is 170* bps higher than Ryanair\nOn a net income basis, assuming the status quo approach of “Sale and Leaseback” currently in use by Wizz, and at a P/E of 8.0x (in line with Wizz LTM and peers average), the equity valuation of Wizz Air in FY29 could be expected to be ~€5.4bn\nAssuming a funding structure similar to its peer group, Wizz Air should be able to achieve ~€1.6bn in incremental equity valuation\nAdditionally, an even higher valuation would potentially be available in FY29 if Wizz Air is able to secure a higher credit rating in line with easyJet and Ryanair",
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      "text": "Incremental equity valuation: €1.6bn",
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      "kind": "source-note",
      "text": "*Source: GS Research, Bloomberg as of 30-Sep-2024",
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      "text": "Unfunded debt model - implied illustrative equity valuation as of FY29E (Euro m) | At Wizz Air cost of capital | At Ryanair cost of capital\nF29E EBITDA | 3,174 | 3,174\nD&A | (1,333) | (1,333)\nInterest expense | (685) | (451)\nTax (25%) | (258) | (291)\nF29E Net Income | 898 | 1,099\nLTM PE | 8.0x | 8.0x\nEquity | 7,184 | 8,792",
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      "kind": "title",
      "text": "Focus on short-term credit metrics to support long-term financing",
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