The Research On Value Evaluation Of Longi

In recent years,the environmental pressures caused by the use of traditional fossil fuels such as coal and petroleum have been increasing.Countries around the world have implemented measures to limit greenhouse gas emissions,and China has also proposed "dual carbon" goals to gradually reduce carbon dioxide emissions and encourage the development of clean energy.Against this backdrop,the photovoltaic industry has begun a new wave of development,with more and more capital market activities such as mergers and acquisitions,public offerings,and capital expansions attracting the attention of various investors.However,traditional valuation methods is not comprehensive enough to consider the large policy impact,rapid technology updates,and great development potential of this industry,resulting in a significant gap between valuation results and actual conditions,increasing investment risks.To help investors select more suitable valuation models for the photovoltaic industry,this thesis decides to conduct a valuation study on LONGi,a representative company in the industry.This passage first explains the existing methods of enterprise value evaluation,then introduces the current situation and competitive landscape of the photovoltaic industry.It then provides an introduction to the evaluated company,LONGi,summarizing its development characteristics and analyzing its financial condition and core competitiveness.Based on the reality,this thesis believes that the value of LONGi includes the value of existing assets and potential value and constructs related evaluation models.The total value obtained from different models is then compared and analyzed.The results show that photovoltaic companies like LONGi have significant potential value,and it is feasible to use the B-S option model for evaluation.When evaluating the value of existing assets,the FCFF model is more suitable than the EVA model.In relative valuation methods,the price-to-earnings ratio model is better than the price-to-book and price-to-sales ratio models.This thesis evaluates the value of LONGi,providing new insights for investors to assess the value of photovoltaic companies in future transactions such as restructuring and mergers.It aims to reduce investment risks.Unlike other studies that use total financial indicators as parameters due to the difficulty of identifying specific real option projects,this paper effectively identifies real option projects for LONGi,enriching the application of the real options approach in specific investment projects of photovoltaic companies.The design and selection of parameters in the model can provide a reference for the valuation studies of other photovoltaic listed companies.