Investors should view climate exposure as a real valuation issue for Vail Resorts (MTN) and the ski industry widely that has measurable financial impact. This is because revenues are driven by the number of skier visits, which is correlated with snowfall, which is in turn affected by climate change. Also, to a lesser extent, reduced snowfall increases operating costs (e.g. it requires more snowmaking). Investors need more accurate public information in order to better assess positive and negative impacts on investments in the ski industry.

Source: Bebb (2015). Climate Exposure Impact on Equity Valuation: Case Study of Vail Resorts, Inc. Steyer-Taylor Center for Energy Policy and Finance.