Trending Content - Investment Banking Forum
| +328 | UBS Tech MD hires Son (from no-name college) as an Intern | 57 | 20h |
| +269 | Evercore Intern Seizure | 38 | 7h |
| +91 | [Official] 2026 IB Analyst Bonus Megathread (with 2025 Consolidated Pay and Perks/Benefits) | 13 | 43m |
| +55 | JPM M&A is Gone??? Purely Coverage Banking??? | 22 | 10h |
| +54 | Is DCM actually underrated ? | 21 | 19h |
| +46 | Are all Tech / TMT groups sweaty? | 33 | 1d |
| +43 | Losing my personality in Banking | 7 | 3h |
| +39 | Am I behind? 31 Year Old Analyst | 9 | 1d |
| +39 | Associate & Above IB exits | 16 | 2d |
| +31 | Incoming IB Analyst: Best Ways to Prepare? | 8 | 2d |
Career Resources
Levered.
Infra investors generally look at levered return as the key valuation metric.
Would a valid explanation also be that they usually take on a lot of debt to fund their infrastructure (highways) and so interest expense may be a large number that should definitely be factored into the calculations for FCF. (as well as the large amount of debt obligations from borrowings)
Levered. I actually look at effective distributions to equity holders (DDM) to account for cash traps, especially in a no-exit scenario (hold until concession expires).
In an exit scenario, when looking at the re-buyer IRR, this might be overly conservative since the asset might be more valuable in the hands of a potential buyer that might have a solution to that issue.
@nutry Would a valid explanation also be that they usually take on a lot of debt to fund their infrastructure (highways) and so interest expense may be a large number that should definitely be factored into the calculations for FCF. (as well as the large amount of debt obligations from borrowings)
Partially yes, but I insist that focusing on distributions is more important given timing of dividend recaps/capital reductions are critical to returns. For that, you need to analyze FCFE. This is even more pronounced if you are looking at a greenfield highway project.
Levered, when valuing a toll road/highway which are highly levered you are likely going to have to take on the debt or do a refi so the FCF and valuation is post interest expense
Asperiores neque iste officiis est id. Corporis facilis architecto dolor error. Molestiae cupiditate sequi impedit esse veritatis voluptatem et. Voluptatem porro dolores error. Repellat a repudiandae sit et.
Asperiores voluptas cum quia esse. Illo id consequuntur nihil quae. Quo corrupti voluptatem praesentium qui occaecati aliquam.
Qui id aut voluptatibus temporibus. Perspiciatis ad quod fugiat cupiditate et. Quis fuga eum doloribus fuga aperiam. Sapiente optio eos beatae voluptatem hic rerum. Illum cupiditate accusantium eveniet et. Quia eius dolorum quis dolorum nobis. Facere blanditiis et at quia maiores pariatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...