comparison with alkane energy

See recent article from Greenbarrel on Alkane.

Market value of Alkane is about £30m with installed capacity of about 70 MW. VSA capital thinks the company is worth about £50m assuming addition of 6 MW annually: “We have revised our valuation and now use a DCF model to assess the potential returns of the company’s growth strategy. Assuming the addition of 6 MW pa and an improving price environment from 2014 onwards, we value Alkane at £49.2 million using a 10 per cent discount rate, for a fully diluted target of 42p.” Wasabi is targetting a much higher growth rate than Alkane (25 MW annually against 6 MW). VSA is putting a value of £ 0.7m per MW on Alkane. Assuming Wasabi achieves its target of 25 MW of installed capacity by 2015 this ought to be worth £17.5 m at least - arguably a Wasabi MW should be worth more than an Alkane MW, in view of the growth rate and the size of the global market. We can look forward to 100 MW of installed capacity by 2018 if the CEO's plans work out.
I'd put a ball-park value of at least £100 million on that.