Research

DECOUPLED NET PRESENT VALUE: A COMPLEMENT TO TRADITIONAL VALUATIONS METHODOLOGIES

The strategic partnership between Sustainability Strategic Advisors Ltd and Geosyntec (www.geosyntec.com), a leading international engineering company, was established to develop the Decoupled Net Present Value ( DNPV) methodology.

The DNPV methodology provides clients with an integrated approach to due diligence and valuation, as it seeks to incorporate due diligence findings into valuation. The concept of synthetic insurance is introduced to price the risk associated with obtaining lower revenues or incurring higher costs than originally expected. The DNPV methodology may also provide clients with additional and relevant insights to take into consideration when defining their risk management strategy.

The DNPV methodology has been successfully applied in the assessment and valuation of energy and infrastructure projects for Multilateral agencies and leading global fund managers.  Sustainability Strategic Advisors Ltd promotes this methodology as an efficient and organized way to integrate commercial discussions, legal arrangements, risk management and valuation.

Interested in further insights about DNPV?

Please visit WWW.DNPV.ORG

The links below provide access to a number of research papers designed to offer a quick overview of the DNPV methodology and its application to real valuation exercises:

Methodology overview:  DNPV Valuation of Infrastructure Investments (2pages)

Case Study Applications:

Renewable Energy:

Using DNPV for valuing investments in the energy sector: A solar project case study

Mining:

Espinoza & Rojo 2017 – Mining Valuation Part I 

Espinoza & Morris 2017 – PCC for Mining Part II 

Climate Change:

The Tragedy of the Horizon