MTN

Vail Resorts Inc

Consumer


Presented:10/30/2018
Price:$242.11
Cap:$9.81B
Current Price:$171.01
Cap:$6.41B

Presented

Date10/30/2018
Price$242.11
Market Cap$9.81B
Ent Value$12.51B
P/E Ratio26.73x
Book Value$39.22
Div Yield2.43%
Shares O/S40.51M
Ave Daily Vol335,307
Short Int2.22%

Current

Price$171.01
Market Cap$6.41B
Vail Resorts, Inc. is a holding company, which engages in the operation of mountain resorts. It operates through the following segments: Mountain, Lodging, and Real Estate. The Mountain segment covers the operation of mountain resorts or ski areas, and related activities. The Lodging segment includes ownership of hotels, condominium management, Colorado resort ground transportation company, and mountain resort golf courses. The Real Estate segment holds real property at mountain resorts primarily throughout Summit and Eagle Counties in Colorado. The company was founded by Pete Seibert and Earl Eaton in March 1957 and is headquartered in Broomfield, CO.

Publicly traded companies mentioned herein: Vail Resorts Inc (MTN)

Highlights

The presenter thinks Vail Resorts (MTN) has been instrumental in transforming the ski industry over the last decade. The company has rolled-up a number of the top destination ski resorts in North America over the years, and its Epic Pass turned 10 years old in early 2018. With the stock trading at ~$240 and yielding 2.5% following the sell-off post-4Q ‘18 earnings, which looks like an overreaction to an understandable promotion, the risk/reward appears to be favorable. While the 2017 - 2018 ski season was a bust, the “pass model” has taken a lot of the seasonality out of the business. If MTN management can execute over the near term, a combination of high single-digit organic revenue growth, low double-digit EBITDA growth, margin improvement, and modest multiple expansion could push the stock to over $300 within 6 - 12 months.

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Idea Discussion

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