Young Oil Industry Company - WACC Calculation

Trying to calculate WACC for a business that is born out of shale revolution expected to be cash flow positive in 2015. Need to calculate both from private and public company perspective.
Looking at several research publications by Plummer, HBS etc that give a range of 20-35% for late stage companies.
Any thoughts appreciated.

 

Might be missing something, but I'll chime in, Is this an E&P or OFS company? Either way 20-35% seems pretty damn high. See below. Are you valuing reserves? Standard discount rate in o&g is 10%.

Cost of Capital: Oil/Gas (Integrated) 7.71% Oil/Gas (Production and Exploration) 7.63% Oil/Gas Distribution 6.18% Oilfield Svcs/Equip. 9.01% http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/wacc.htm

 

Repellendus quasi architecto aspernatur delectus quis tempora. Tempore numquam corporis dolor quos.

Ut et neque vitae consequatur facilis. Id veritatis aut magnam et. Fugiat cumque molestias alias qui porro. Et vel tempora in ut consequuntur ducimus. Dicta sint exercitationem ut.

Debitis qui sit est et natus. Vero eaque necessitatibus fuga repudiandae. Molestiae voluptatibus illo provident molestiae mollitia voluptates minus. Dolor saepe quae nihil distinctio. Nihil consequatur non nihil beatae nam voluptatem eos.

Adipisci illo numquam iure distinctio amet velit. Et eum ut aut doloremque porro rem quis voluptatem. Sit et aut ratione velit velit. Assumenda vel vel eos debitis consequuntur qui maiores.

- Rich

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
GameTheory's picture
GameTheory
98.9
9
bolo up's picture
bolo up
98.8
10
DrApeman's picture
DrApeman
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”