Welcome to AER Blog

Information Centre

Topic 10 – Credit risk and Counterparty credit risk

ISSUE 10  – DATE 6 August 2015 1. INTRODUCTION AND OBJECTIVE This article attempts to discuss some considerations on credit risk of a body corporate and counter party credit risk of a body corporate, applicable to a national electricity body such as Tenaga National... read more

Topic 9 – Relative Valuation Analysis

ISSUE 9  – DATE 28 JULY 2015 1. INTRODUCTION AND OBJECTIVE This article attempts to discuss some considerations that need to be taken into account when evaluating using the Relative Valuation Analysis also commonly known as RVA. This article will make reference to... read more

Topic 8 – Case Study

ISSUE 8 – DATE 21 JULY 2015 1. INTRODUCTION AND OBJECTIVE This article attempts to discuss two selected past transactions that I have gathered from public domain and public announcements, to illustrate the manner of pricing methods being used in some power plant... read more

Topic 7 – Country Risk Analysis Methodology

ISSUE 7 – DATE 21 JULY 2015 1. INTRODUCTION AND OBJECTIVE This article attempts to discuss some common techniques that an analyst could use in analysing the country risk, and this is especially important in investing in power plants in emerging markets. These risks... read more

Topic 6 – Difference Between Equity IRR and Project IRR

ISSUE 6 – DATE 20 JULY 2015 1. INTRODUCTION AND OBJECTIVE This article attempts to discuss on the difference between equity IRR and project IRR which are commonly computed in the appraisal of an independent power plant when discounted cash flow technique is used. Type... read more

Topic 5 – Determination of Terminal Value

ISSUE 5– DATE 19 JULY 2015 1. INTRODUCTION AND OBJECTIVE This article attempts to discuss on some basic principles that should be considered in addressing the determination of Terminal Value (TV) which is a source of input in FCFE / FCFF. Generally, the determination... read more

Topic 3 – Determination of Equity Discount Rate Ke

ISSUE 3– DATE 19 JULY 2015 1. INTRODUCTION AND OBJECTIVE This article attempts to discuss on some basic principles that should be considered when determining the cost of equity, which is the discount rate used when using the FCFE method (discussed in Topic 2). There... read more

Topic 2 – Discounted Cash Flow – FCFE and FCFF

ISSUE 2– DATE 19 JULY 2015 This article attempts to discuss on some basic principles that should be considered to evaluate an investment in power plant deciding whether investment is a brown field or green field. First, I shall attempt to define only for the purpose... read more

Topic 1- Brownfield and Greenfield

ISSUE 1 – DATE 19 JULY 2015 This article attempts to discuss on some basic principles that should be considered to evaluate an investment in power plant deciding whether investment is a brown field or green field. First, I shall attempt to define only for the purpose... read more
Page 3 of 41234

The information contained in this blog is provided for reference and informational purpose only and does not constitute any investment advice. Investors are advised to seek independent advice before making any investment decision. Past performance is not indicative of future performance. Investment involves risk and investors may suffer losses as a result of it.