I've been looking at some RE developers and am trying to find a way to value these companies - companies such as SunEdison and NextEra Energy. These companies seem slightly more complex to value because of the different moving parts that make up the firm - some have yieldcos, devcos, utility segments, manufacturing etc. I'm wondering how exactly should one value a devco, considering that some of the assets that it constructs will be dropped down to the yieldco?
Based on sell-side research I have read, different sell side shops do it differently. Some utilize gross profit and margins directly instead of projecting revenue, others use capacities and ASPs for projects sold to 3rd party vs projects dropped down to yieldco. To complicate things, there are significant differences between GAAP and non-GAAP measures.
Quite confused as to how I should be modeling such companies. Would really appreciate if anyone with more experience can shed light on this or if you have a model that you are willing to share - would be eternally grateful!