Quote:
Originally Posted by deadheadskier  I guess it depends on how 'worth' is determined. Resort revenue is probably a very small factor. |
Technically, something is worth the discounted value of its future cash flows. Anecdotally, it's worth what someone will pay for it.
In this case, you've got a mish mosh of the technical approach, plus a plain asset or replacement value approach - there is a lot of money in the steel, concrete and timbers of the new Spruce Mountain Lodge. Not sure what sort of revenues the other properties can be expected to continue generating. Either way, the intangible/goodwill value of the Stowe brand, the fixed assets, and the actual revenue/EBITDA generating capability of the entire place add up to an entity that is worth well North of $100MM in my mind. If Mt. Snow, which isn't half the mountain Stowe is in many respects, sold for $70MM-ish, then that's a pretty valid comparable.
Either way, Geoff's larger point that Stowe is a rounding error in the AIG empire is 100% spot on. If AIG cuts its toilet paper bill by 5%, they've saves more money than Stowe profits each year.