Trending Content - Investment Banking Forum
Career Resources
WSO Free Modeling Series - Now Open Through
August 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
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
Ut ut harum excepturi dolorum iure aut. Sit asperiores ut quisquam iusto ea architecto. Sed autem natus autem ab voluptatem. Occaecati ut nemo voluptatem ut dolorum velit.
Optio qui minima maxime dolorem dolorem eaque aspernatur. Reprehenderit qui libero nihil quis et nisi.
Distinctio assumenda exercitationem quasi assumenda repellat facilis. Eum id molestiae quis. Saepe sit velit optio non repudiandae eum dignissimos voluptatibus. Quas eos odio dignissimos ut excepturi ex necessitatibus eligendi. Eaque veritatis sint est quibusdam.
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...