Case study - Nap Plc. valuation
Valuation of a domestic listed company for a Czech private equity fund
DESCRIPTION OF THE CLIENT AND THE PROBLEM:
- Our client, a Czech private equity fund, needed an independent third party valuation of the shares of Nap Plc.
- In addition, the client was not familiar with the Hungarian renewable energy regulatory environment, the different feed-in tariff regimes and the market outlook.
OUR APPROACH:
- Given that a third party, which is not part of the project, had to be valued, the shares of Nap Plc were valued using only publicly available data, the annual reports published by the company .
- The main methodology used for the company's shares was discounted cash flow. In this approach we were able to capture the different characteristics and takeover conditions of each solar power plant, and through a sensitivity analysis we were able to show how the volatile electricity price environment affects the value of the company .
- To verify the results, we also carried out a multiplier assessment.
RESULTS:
- Calculation of the capital value per share of NAP Plc using two methodologies, which were provided to the client in the form of an excel-based financial model and a detailed company valuation report.
- Preparation and presentation of a regulatory and market summary for the client. Presentation of the impact of potential regulatory changes on goodwill.