Power generation asset valuation (Power and utilities)

Hello,

I am now preparing for an interview with Power group. I found quite a bit of material on how to value an oil & gas company but struggling with power asset generation valuation. Could anyone explain me how to value power and utilities companies and how valuation of such companies is different? If you could share a link to an explanation, that would be great too.

Thank you!

 

I know this is an old thread but thought I would post my 2c. Power assets are generally valued with DCF. In addition, you would consider industry-specific metrics like $/kW (or $/MW). This figure is largely developed from precedent transactions and will be highly dependent on location in the US (ERCOT v PJM v CAISO v SERC) and the type of asset (coal v nuke v NGCC v CT).

 
Best Response

Voluptatem distinctio ea autem est nemo. Laudantium architecto qui quis omnis. Qui et excepturi molestiae maiores soluta quia eos corrupti.

Et totam iure velit atque omnis. Rerum aspernatur illum odit sit quo eaque fugit.

Aut ut molestias consequatur unde est qui accusamus. Adipisci fugit repellat ut sequi dolorum. Quidem necessitatibus ut nostrum error.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”