Within our models we assess the earnings and cost drivers and make adjustments accordingly.
Example: A company producing a carbon emitting commodity
We assess the long term revenue drivers of the company. This would include taking into account the long term demand as a function of the world changing to less carbon emitting commodities and the impact this will have on revenue. We would also include our forecasted price for coal for example, and where relevant this would also impact revenue. Where appropriate we would also include the cost of site remediation. These factors are included within our model and thus directly impact our valuation of the company.