As of May 27, 2025, Bombardier Inc has a Discounted Cash Flow (DCF) derived fair value of $286.43 per share. With the current market price at $89.66, this represents a potential upside of 219.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $265.69 |
| DCF Fair Value (10-year) | $286.43 |
| Potential Upside (5-year) | 196.3% |
| Potential Upside (10-year) | 219.5% |
| Discount Rate (WACC) | 6.2% - 7.7% |
Revenue is projected to grow from $8665 million in 12-2024 to $15359 million by 12-2034, representing a compound annual growth rate of approximately 5.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 8665 | 8% |
| 12-2025 | 9462 | 9% |
| 12-2026 | 9751 | 3% |
| 12-2027 | 9901 | 2% |
| 12-2028 | 10643 | 7% |
| 12-2029 | 10856 | 2% |
| 12-2030 | 11640 | 7% |
| 12-2031 | 12222 | 5% |
| 12-2032 | 13321 | 9% |
| 12-2033 | 14627 | 10% |
| 12-2034 | 15359 | 5% |
Net profit margin is expected to improve from 4% in 12-2024 to 6% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 370 | 4% |
| 12-2025 | 256 | 3% |
| 12-2026 | 354 | 4% |
| 12-2027 | 449 | 5% |
| 12-2028 | 577 | 5% |
| 12-2029 | 684 | 6% |
| 12-2030 | 733 | 6% |
| 12-2031 | 770 | 6% |
| 12-2032 | 839 | 6% |
| 12-2033 | 921 | 6% |
| 12-2034 | 967 | 6% |
with a 5-year average of $299 million. Projected CapEx is expected to maintain at approximately 4% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 306 |
| 12-2026 | 342 |
| 12-2027 | 355 |
| 12-2028 | 372 |
| 12-2029 | 429 |
| 12-2030 | 447 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 17 |
| Days Inventory | 214 |
| Days Payables | 77 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 876 | 131 | 301 | 102 | 343 |
| 2026 | 1382 | 241 | 413 | (22) | 750 |
| 2027 | 1562 | 306 | 420 | 66 | 771 |
| 2028 | 1828 | 393 | 451 | 155 | 829 |
| 2029 | 2074 | 465 | 460 | 3 | 1146 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 265.69 | 196.3% |
| 10-Year DCF (Growth) | 286.43 | 219.5% |
| 5-Year DCF (EBITDA) | 227.79 | 154.1% |
| 10-Year DCF (EBITDA) | 290.46 | 224.0% |
Is Bombardier Inc (BBD.B.TO) a buy or a sell? Bombardier Inc is definitely a buy. Based on our DCF analysis, Bombardier Inc (BBD.B.TO) appears to be significantly undervalued with upside potential of 219.5%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $89.66.