Gas pipeline valuation
Hi guys,
I am currently interviewing for a role and have been tasked to build a valuation model for a gas downstream and pipeline player (i.e. they supply products and the associated infrastructure).
I'm struggling on a couple of notes:
1) Typical forecast horizon - should I be forecasting out for 5 or 10 years?
2) Would there be an exit multiple? Or is it safe to assume the end of life of the asset at some point
3) Would the typical O&G 10% discount rate be sufficient?
4) If the investor were interesting in acquiring a 10% stake for example, would that be just be 10% * enterprise value from the valuation?
Apologies, a modelling newbie here.
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