In this article we explain how greenmatch calculates project values. You can refer to this article if you have any questions, e.g. in the course of a review by your auditor. For more in-depth questions, please contact support@greenmatch.ch.
The calculation of project values is based on a discounted cash flow model (DCF), as used, for example, in the valuation of renewable energy projects. With such a model, cash flows can be planned and evaluated over the entire project lifetime. The GM Valuation product used by greenmatch customers is an audited DCF model that calculates various key figures such as IRR’s, levelised cost of energy (LCOE) and project values.
In order to calculate the value of a project at a specific point in time, all future cash flows of the financial model are discounted to this point in time. The discount rate reflects the risk structure of the project. The sum of the discounted cash flows corresponds to the project value. The present value of all future cash flows is therefore calculated and these are summed up to get the project value. The following table shows this calculation using a simple example.
| Total | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Cashflow | 500’000 | 100’000 | 100’000 | 100’000 | 100’000 | 100’000 |
| Discount rate | – | 5% | 5% | 5% | 5% | 5% |
| Net present value | 432’948 | 95’238 | 90’703 | 86’384 | 82’270 | 78’353 |
The project value of a project with cash flows of 100,000 each year over five years and a discount rate of 5% is 432,984.
In greenmatch, all key figures are calculated on the basis of monthly cash flows. In the following modules you will find calculations of the project value, whereby you can read the value at any desired point in time in the graphs or tables.
In the Projects module in the overview of a project
| Value | Discounted Cashflow |
| Project Value | (Adjusted) Free Cashflow |
| Equity Value | Cashflow to Equity |
| Payout Value | Payout |
In the Projects module in the Investor section
Investor objects can be used to allocate the injected equity and the paid-in shareholder loans to different investors. The respective object then only shows the values that correspond to the investor profile.
| Value | Discounted Cashflow |
| Net Asset Value | Cashflow to Investor (= Payout * Equity Stake + assigned Shareholder Loans) |
| Gross Asset Value | Cashflow to Investor + Debt (proportional) (= Debt * Equity Stake) |
Overview in the portfolio module
A valuation for the entire portfolio can be read in the portfolio module. The projects are valued with the corresponding discount rates based on the target returns stored in the portfolio. The following calculations are displayed at portfolio level:
| Value | Discounted Cashflow |
| Net Asset Value | Cashflow to Investor |
| Gross Asset Value | Cashflow to Investor + Debt (proportional) |
Do you have questions about the calculation of certain KPIs in our financial software? Please contact Support for help.
