Application Of Residual Income Models To The Valuation Of TW PV Enterprises

Against the backdrop of rapid development led by the global goal of "carbon neutrality",China is accelerating the development of renewable energy with photovoltaics as the mainstay,and the global installed demand for photovoltaics continues to grow at a rapid pace.The growth prospects of the photovoltaic industry are favoured by investors and the market,and a large amount of capital is pouring into the new energy supply chain related industries,both ordinary investors and managers of enterprises are expected to enjoy the development dividends of the photovoltaic industry.In order to better serve the managers of PV companies and help them better understand the value of their companies,it is of practical importance to find a valuation model that is suitable for the valuation of PV companies and can assess the true value of PV companies in a more scientific and accurate manner.As a representative photovoltaic company listed on the SSE,this paper has taken into account both the economic system and the market environment in China,and by studying and assessing the reasonableness of the intrinsic value of TW,it will not only provide a reference for other related companies entering the capital market,but also help investors and managers to find a more suitable valuation method for their companies.This paper begins with a review of the relevant aspects of enterprise valuation.This paper first reviews the concepts and theories related to enterprise valuation and the current state of research,and then selects the residual income model as the basic valuation model among several models,taking into account the development characteristics of the PV industry and the business characteristics of TW PV enterprises.The model is applied in the valuation of TW PV.The model uses various financial indicators to calculate residual earnings and to estimate the intrinsic value of the company.In order to ensure the reliability of the findings,the data sources used in this paper are the operating data disclosed by TW PV companies on the SSE,the WIND and CSMAR databases,and the National Bureau of Statistics,which are highly reliable sources.In order to verify the validity of the model,after the valuation results were obtained,the results were compared with the actual operating data and other mainstream valuation models,and the results showed that the residual income model differed from the actual enterprise value by 8.98%,while the P/E,P/N ratio and free cash flow models were 37.51%,45.51% and34.16% respectively.The residual income model is closer to the true value of the enterprise than other valuation models,and is a relatively more suitable valuation model in the valuation of PV enterprises.Based on the findings,this paper further analyses the key factors affecting enterprise value and points out that in the future,the company managers should strengthen cost control as the focus point for enterprise value enhancement in the process of company operation.The paper provides effective suggestions for corporate managers to enhance the value of their companies.