Jan. 10 at 5:47 PM
$AMC AMC is a rare opportunity.
Rebuilding its 950 theaters would cost about
$30 billion.
Today the company is valued at about
$840 million, and its real debt is around
$4.2 billion.
The higher number people mention (
$8.1B) includes future lease payments, which are operating expenses, not financial debt.
If the
$4.2B debt is spread over 15 years at 7% interest, the yearly payment is about
$452 million.
AMC’s operating profit is about
$900 million a year and is expected to rise to
$1.2–1.5 billion.
In 2026, AMC is expected to reach record revenues.
Things look bad on the surface, but when you look at the numbers, the potential reward is bigger than the risk.
In my view, the company should be worth about
$10 billion, which means around
$20 per share.
