JoeyDVivre Wrote: ------------------------------------------------------- > DarienHacker Wrote: > -------------------------------------------------- > -----> > > BTW, it’s ‘value’, not ‘valuate’. > > I would always use the word value too, but valuate > is actually a word that means “to value” according > to Generic Internet Dictionary. It seems vaguely > possible to me that someone uses “valuate” in some > neck of the finance world. I could not believe he would talk to you like that JoeyD. Kids these days. No respect
I didn’t use the word valuate - DarienHacker sorta corrected the thread author.
He must be a rich kid from lower fairfield county
dieselbp67 Wrote: > but in some cases a government will > negotiate with a power development company(in > severely underdeveloped countries) and basically > enter a PPA with a utility. This will make the > cash flows less risky, but then you have to > consider how credit worthy the government of the > nation you are analyzing is This, I think, is a very relevant point. Power Purchase Agreements are key in the valuation of independent power projects - but normally used when selling into an off-taker in a less mature market. Not used for the sale of output onto a mature spot market … obviously. Surely having a knowledge of fuel, off-take and operating contracts e.g. BOO - Build Own Operate, TOR - Transfer of Operating Rights (“Turnkey”) is more important than generic DCF skills? The back-to-backing of these contracts and their valuation is where real risk reduction and value creation lies. As is understanding the difference between Capacity and Availability. And for extra Brownie Points try asking the guy opposite you in the interview about “system support” and how that can be valued.
There has been nothing said in this thread which adds any value beyond my original comment.
HoldSideAnalyst Wrote: ------------------------------------------------------- > There has been nothing said in this thread which > adds any value beyond my original comment. please tell me you are joking i don’t think this guy is going to go to an interview and tell them he intends to discount future cash flows by the appropriate discount rate and walk out with an offer
on a side note, how do bankers determine the amount of the control premium?
dieselbp67 Wrote: ------------------------------------------------------- > HoldSideAnalyst Wrote: > -------------------------------------------------- > ----- > > There has been nothing said in this thread > which > > adds any value beyond my original comment. > > please tell me you are joking > > i don’t think this guy is going to go to an > interview and tell them he intends to discount > future cash flows by the appropriate discount rate > and walk out with an offer I am not joking. I don’t think the guy is going to go to an interview and tell them anything he learned on AF and walk out with an offer. But that applies to everyone who comes here with stupid “interview help” questions.
Loxley … Wrote: ------------------------------------------------------- > dieselbp67 Wrote: > > but in some cases a government will > > negotiate with a power development company(in > > severely underdeveloped countries) and > basically > > enter a PPA with a utility. This will make the > > cash flows less risky, but then you have to > > consider how credit worthy the government of > the > > nation you are analyzing is > > > This, I think, is a very relevant point. Power > Purchase Agreements are key in the valuation of > independent power projects - but normally used > when selling into an off-taker in a less mature > market. Not used for the sale of output onto a > mature spot market … obviously. > > Surely having a knowledge of fuel, off-take and > operating contracts e.g. BOO - Build Own Operate, > TOR - Transfer of Operating Rights (“Turnkey”) is > more important than generic DCF skills? The > back-to-backing of these contracts and their > valuation is where real risk reduction and value > creation lies. > > As is understanding the difference between > Capacity and Availability. And for extra Brownie > Points try asking the guy opposite you in the > interview about “system support” and how that can > be valued. Depends what you do. I’ve worked on an IWPP (Integrated Water Power Plant) and have no knowledge whatsoever of a lot of this thread. I brought the “generic DCF skills” to the party. Whether they wish to BOO or BDFO it never bothered me.
Loxley … Wrote: ------------------------------------------------------- > As is understanding the difference between > Capacity and Availability. And for extra Brownie > Points try asking the guy opposite you in the > interview about “system support” and how that can > be valued. Easy- its whatever the grid operator will pay for it