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Oil & Gas Investment Banking: The First Victim of the ESG Cult?

Brian DeChesare

Essentially, the NAV Model is a super-long-term DCF without a Terminal Value. The Terminal Value doesn’t make sense in this vertical because oil and gas resources are finite; you can’t assume that a company will keep producing “forever.”.

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Metals & Mining Investment Banking: The Full Guide to Ground Zero for the Energy Transition

Brian DeChesare

New or Tweaked Valuation Methodologies – As in the E&P segment of oil & gas, there’s also a Net Asset Value (NAV) model for mining companies, and it’s set up similarly (essentially, it’s a long-term DCF with no Terminal Value). OK, now to the good news: This situation is starting to change.

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