ADP Aeroports de Paris SA

Investing.com -- Shares in Paris airport operator Aeroports de Paris fell as much as 4.4% on Tuesday before paring losses to trade down 1.1%, after the French government proposed sharply raising a tax on long-distance transport infrastructure.

Investing.com -- Groupe ADP said passenger traffic across its airports rose slightly in August, even as its Paris hubs saw a decline, with the group continuing to feel the effects of the conflict in the Middle East.

Aeroports de Paris has delivered a 14.9% total return over the past 5 years, yet the market is still pricing the stock at €108.90. The open question for you is whether that price is supported by the cash the business can generate over time. The 14.9% gain over 5 years places greater importance on whether long term cash flows can justify holding Aeroports de Paris at today’s level. The company’s airport concession model can influence how efficiently accounting profits turn into cash, which in...