New Energy Business Valuation Based On Real Options

In recent years, because of the shortage of global energy and increasinglyprominent environmental problem, development and utilization of new energyconstant attention. And our country is also actively involved in the research anddevelopment team, attach importance to the development of new energy enterprises,and gives the policy and financial support. It brings an opportunity for thedevelopment of new energy companies. New energy enterprises have an importantstrategic position in national economy. But under the background of financial crisis,the traditional energy prices tumbled, serious impact on the development of newenergy industry. However, because of the unstable market environment, investors thatparticipate in the new energy industry take on more risk and uncertainty, with flexibleoptions, and to a certain extent, these "rights" add potential growth opportunities andthe future unpredictability in new energy industry, embodies the new energyenterprise value of options.In this paper, it analyses from an overview of the new energy industry,characteristics and the factors affecting its value, according to the research of therelated literature at home and abroad, choose the real options method in theBlack-Scholes model(hereinafter referred to as B-S model).This paper chooses arepresentative listing of new energy companies, Goldwind Science&TechnologyCo.,Ltd.as the research object, uses the case analysis method, research from the angleof the option value of the value of the company. By B-S model, to determine theparameters, and finally to its fair value relatively objective assessment, provide areference for investors buy its stock. This paper also gave a sensitivity analysis, themodel parameters of the asset value and execution of the bid price had a greaterinfluence on the results of the model, other changes are not sensitive, shows that theoption method of evaluation has strong stability.Based on the research analysis, using the real option model, the company’s glowvalue per share is higher than the price of the stock market. Through the market environment analysis of the industry, stock market underestimated its intrinsic value.At this point, investors should pay attention to; it recommends investors to buy andcorresponds operation, according to the follow-up situation.