KKR-backed Helix Digital To Partner With VST On New Data Centers

Research evidence excerpt

KKR-backed Helix Digital To Partner With VST On New Data Centers

TD Cowen Vistra Corp.

Global Research June 11, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Power Generation:

We value the sector primarily using a sum-of-the-parts approach, for which we primarily use

an EV/EBITDA multiple on 2027 EBITDA. We also try to take into account any tax credit benefits

or unrecognized liabilities to adjust our price target. The typical EV/EBITDA multiple range for

unregulated generation assets is 5.5x (coal) to 20x (nuclear), depending on asset type, location,

market dynamics, and outlook.

Investment Risks

Commodity Price Risk: Power generation margins are highly sensitive to fluctuations in fuel

prices (natural gas, coal, uranium). Changes in these prices directly impact profitability,

especially for merchant generators.

Market Risk: Exposure to volatile electricity prices and capacity payments in deregulated

markets can lead to unpredictable earnings.

Regulatory and Policy Risk: Changes in environmental regulations (e.g., emissions limits,

renewable mandates) or market design (such as capacity market rules) can require significant

capital expenditures or alter the economics of generation assets.

Operational Risk: Generation assets face risks from equipment failures, outages, extreme

weather, and the need for reliable performance. Failure to maintain operational reliability can

result in financial losses and penalties.

Technological Risk: Advances in renewables, battery storage, and distributed generation can

reduce demand for traditional generation and require new investments to remain competitive.

Financial Risk: High leverage is common in the sector. Changes in credit ratings, access to

capital, or tax policy can affect financial stability.