The Research Of How PPP Project Impacts The Valuation Of Environmental Protection Company

In recent years,with the faster accelerating pace of urbanization,the public's demand for public services has increased.However,financial issues,technical issues and management issues have plagued the promotion of public services.In this context,the PPP project emerged as a new model for solving financing and management problems in the public service sector.The PPP project is a partnership-type partnership between government departments and private organizations,in order to provide certain public goods and services,based on the franchise rights,by signing cooperation agreements to clarify the rights and obligations of both parties.Under this model,the government departments and private organizations make full use of their own resource advantages,cooperation and win-win,benefit sharing,and risk sharing,making full use of resources and improving the efficiency and quality of public services.Since the promotion of the PPP project in 2014,more and more companies have participated in it,so it is of practical significance to study the impact of this model on the performance and valuation of participating companies.Due to the large scale of PPP projects,the large amount of capital demand,and the long time span of the project,its influence on participating enterprises is extensive and complicated.In terms of its advantages,,on the one hand,after participating in the company's winning PPP project,it can bring long-term stable orders and directly increase the company's operating income;on the other hand,the PPP project has become a new model for enterprises to expand their business,participating enterprises.Project companies established through the successful PPP project can help companies expand their markets and seize opportunities.There are advantages and disadvantages,although the PPP project brings a lot of opportunities to the enterprise,but at the same time the risk points it brings can not be ignored.First of all,PPP projects will generate a large amount of accounts receivable due to their own operating characteristics.If the receivables of the receivables are poor,it will affect the profits of the enterprises.Secondly,the PPP project is subject to greater changes in policy,the stricter controls and financing will have a greater impact on participating companies,causing certain uncertainty to the development of the enterprise.Therefore,while actively participating in the PPP project,we must also do a good job of risk management and control to improve our business capabilities.Through relevant theoretical analysis and literature review,this paper summarizes the impact of PPP project on the private sector.Then,through the DEA model analysis and financial analysis of environmentally-listed companies,the impact of the model on the company's value is studied.By studying the company's annual report,we will focus on the adjustment of the impact of the PPP project on the financial statements,and use the company's valuation model to conduct a valuation analysis of the PPP project leading company Bishuiyuan.At the same time,the company's valuation before and after the promotion of the PPP project is measured,and the difference in valuation results is analyzed.Finally,based on the analysis results,combined with the current development prospects of the PPP project,relevant recommendations are made to participating companies.