Research On Wind Power Enterprise Value Assessment Based On Improved Income Approach

In recent years,environmental issues have become the focus of attention.Many countries have proposed "Carbon Peak" and "Carbon neutrality",and corresponding targets have been set.In this context,the demand for clean energy is bound to grow.Wind energy has become one of the most developed and widely used clean energy sources due to the available resources.Over the years,wind energy has grown very rapidly in China,with installed capacity continuing to increase.However,In 2019,a Notice on Improving Wind Energy Feed-in Tariff Policy was published by the National Development and Reform Commission,specifying that from January 1,2021,the newly approved batch of onshore wind power projects,which had previously been subsidized by the state,will fully achieve grid parity.2022,offshore wind power will achieve grid parity as well as onshore wind power.The adjustment of the policy will lead to a rush to install wind turbines in 2019,and the boom of the industry will decline in the short term,so it will lead to a greater uncertainty in the development of the industry.In terms of its commercial value,the choice of evaluation methods for the future wind energy industry deserves further study.In this thesis,Grey Markov prediction and Monte Carlo simulation are combined to assess the enterprise value of wind energy companies with an improved income approach,and we select representative electric power wind power as a case study for analysis.Firstly,the concepts,merits,weaknesses and principles of every business valuation method are summed up,and the industrial situation is analyzed.We believe that the current cost approach as well as the market approach are not able to assess the value of wind power enterprises very accurately,and the income approach has the problems that the relevant discount rate is difficult to determine and the way of predicting future cash flows is simple and subjective,so this thesis conducts a study of the income approach on the basis of Monte Carlo simulation method.In summary,this thesis starts from new energy wind power enterprises and analyzes that new energy wind power enterprises have unique characteristics compared with other enterprises,and when evaluating its enterprise value,compared with traditional energy enterprises,because of the instability of wind resources,new energy wind power companies have some difficulty in determining the profit.,and it is impossible to seek the environmental value using traditional methods,so the improved earnings method is introduced.can improve the accuracy of asset valuation.Hope the study of this article will be helpful to the evaluation practice in the evaluation of environmental enterprises and contribute to the development of an environmentally friendly society.Therefore,Gray Markov Prediction and Monte Carlo Simulation Method are effective in improving the prediction of future cash flow and selecting discount rates in the market approach,and also provide a new idea for enterprise value assessment in new energy industries such as wind power where future financial indicators are difficult to predict and there are more listed companies in the industry,and provide some new solutions for investors’ decision making.