Evaluation Of New Energy Vehicle Enterprise Value Based On Improved FCFF-BS Model

In September 2020,China clearly proposed the goals of achieving "carbon peak" by2030 and "carbon neutrality" by 2060,making carbon reduction an important task for China’s development.Developing the new energy industry is one of the important ways for China to achieve the dual carbon goal.The country has introduced a series of support policies for the new energy industry,which has led to the rapid development of China’s new energy industry,and new energy vehicles have stood out from them,receiving widespread attention.The development of the new energy vehicle industry has also brought related businesses such as investment,financing,and corporate mergers and acquisitions to new energy vehicle enterprises.However,as one of the high-tech industries,new energy vehicles require huge research and development funds,and the risks they face in the future are also significant.There are certain limitations in using traditional evaluation methods to evaluate such high investment,high risk,high income,and high growth enterprises.Therefore,it is important to establish a scientific evaluation method for high-tech enterprises such as new energy vehicles.After organizing existing research on new energy vehicle companies and analyzing their value composition,this article believes that when evaluating the overall value of new energy vehicle companies,the sources of value mainly include two aspects: existing value and potential value.However,traditional evaluation methods are difficult to assess the potential value of new energy vehicle enterprises,which can easily lead to an underestimation of the overall value of the enterprise.Therefore,this article introduces the real option model into the value evaluation of new energy vehicle enterprises and attempts to use the real option method to evaluate the potential value of new energy vehicle enterprises.The main research content is as follows: Firstly,the FCFF(Free Cash Flow for the Firm)model in the income method model is used to evaluate the existing value of new energy vehicle enterprises,and the real option method is used to evaluate the potential value of the enterprise.The evaluation results of the two are combined to obtain the overall value of the enterprise;Secondly,the parameter setting in the real option valuation method is a fixed value,and the potential value of the enterprise has strong uncertainty characteristics,so there may be some error between its valuation results and the actual situation.Therefore,this article introduces fuzzy mathematics theory to improve the original real option model,changing the relevant parameters from a fixed value to an interval,and making reasonable modifications.Thirdly,BYD,a leading new energy vehicle enterprise in China,is selected as a research case,and the overall value of BYD is evaluated using the FCFF plus real option method and the FCFF plus fuzzy real option method,respectively.The evaluation results obtained from the two evaluation methods are then compared.The main research conclusions of this article are as follows: firstly,the evaluation results using the combination of FCFF and real option method are closer to the overall value of new energy vehicle enterprises.As one of the important values of new energy vehicle enterprises,potential value cannot be ignored when evaluating the overall value of enterprises;Secondly,based on the comparison of the evaluation results between the two combination methods,the results show that the fuzzy real option method with the introduction of fuzzy functions has a smaller error compared to the actual value,which is more conducive to the potential value evaluation of new energy vehicle enterprises.This combination model provides a certain reference value for the value evaluation of new energy vehicle enterprises in China,and is expected to promote the healthy development of capital activities such as new energy vehicle investment and financing,mergers and acquisitions,and restructuring.