Valuation Of Photovoltaic Enterprises ——Longi As An Example

In recent years,with the continuous intensification of the greenhouse effect,the environment has gradually deteriorated.The interlocking problems of the world environment,climate and energy economy have become increasingly prominent.Meanwhile,the governments of most of all countries attach great importance to the development of clean energy.Under this circumstance,Chinese government proposed the goal of "carbon peak in 2030,carbon neutral in 2060",and began to tilt policy for the clean energy industry and vigorously support it.At present,China’s carbon emissions are mainly generated in power generation and industry.In order to reduce carbon emissions,solar and wind energy and other clean energy are widely used.Therefore,photovoltaic and other clean energy-related industries have great development potential,and it becomes increasingly important to accurately assess the value of photovoltaic companies.Based on the background above,this paper aims to study the value evaluation of enterprises in photovoltaic industry.At present,there are few existing evaluation cases,and the research process has a large number of predictive values,and the basis is relatively one-sided.So the photovoltaic industry enterprise value evaluation framework has not formed a unified conclusion.When evaluating the enterprise value,only the explicit value that can be calculated from the existing financial data of the enterprise is considered,and the implicit value produced by the flexible management of the enterprise is not considered.Therefore,there should be error in the value of photovoltaic enterprises evaluated,and this will have an impact on the conclusions of the intended users.In order to reduce the error of value evaluation and evaluate the value of photovoltaic enterprises more accurately,this paper takes LONGi,a leading enterprise in the photovoltaic industry,as an example,evaluates the real value of LONGi by combining the method of economic added value and real option,and explores a model suitable for the evaluation of photovoltaic enterprises.Firstly,this paper compares the development history of the field of enterprise value assessment,focusing on the economic value added method and the real option method.Then,according to the characteristics of photovoltaic industry enterprises,this paper various models in the field of value evaluation are compared and the model suitable for the value evaluation of LONGi is selected.Then the photovoltaic industry policy,industry chain,development status,valuation and other related background are introduced and focus on the target case of the basic situation of LONGi.According to the development trend of the industry and based on the reality,the economic value added method is selected to evaluate the explicit value of LONGi among free cash flow discount method and economic value added method,and B-S model in real option method is used to calculate the implicit value of the enterprise,and the evaluation is summarized.Finally,based on the market price of LONGi on Decembe 31,2020,the value difference rate of LONGi under different methods is compared.The research results show that the model combining economic value-added method and real options method is superior to traditional valuation methods in assessing PV enterprises,and can reflect the overall value of LONGi more accurately.The innovation of this paper is that,on the one hand,it takes into account not only the explicit value of the enterprise but also the implicit value of the enterprise in the valuation of the PV enterprise,which makes the valuation results more complete and accurate.On the other hand,the energy efficiency benefits generated by PV enterprises are quantifiable.