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December 12, 2007
Clean Energy Stocks At A Peak?
The title of this post is derived from a quote attributed to Tom Murley, head of UK PE group HgCapital in eFinancial News. We've been hearing VCs complain about the high valuations of some alt energy startups at industry conferences, and we've marvelled ourselves at the rich valuations on solar energy companies on these pages, but private equity investors are now saying that these valuations are not sustainable. In a report drawn from a panel discussion on the topic of clean energy last week that was hosted by eFinancial News, Murley said, “We are at the peak of inflated expectations.”
Murley commented that stock prices are peaking and are not sustainable, giviing the example of wind farm companies. “We are seeing them trade at 48 times earnings against eight for large utilities.”
Anne Glover of Amadeus Capital Partners, is also quoted. “We are in a secular long-term trend. This business is not a bubble…” But she also said she could not defend all the values being put on clean energy businesses.
Posted on December 12, 2007 04:25 PM | Posted to News And Updates | Permalink
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