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).

 
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