DCF Model - Wind Energy Project

HI guys! I’m currently valuating a wind energy project based in Pakistan. Just in case may ask if how rate of return and growth can be calculated? Many thanks!

probably aruond 10%

Wrong, it’s 11%. How can you look at yourself in the mirror?

hi, I have done valuation of a few wind farms, send me more info on PM I might help you

How about adding Equity Risk Premium of 6% (For Paki Market) to reference Tariff’s Cost of Debt of kibor + 3% to arrive at cost of equity.

can you pm me as well? or if you can post it here. im curious as well.

ok, what you want to know?

If you’re using FCFE, use the Ibbotson-Chen macro model to calculate the required return. You have data on inflation, GDP, long term bond yield, and average div yield in the stock market. You could add a risk premium for country-specific risk to be conservative. Use different growth scenarios and present a range of results.