Research On Value Evaluation Of New Energy Enterprises Based On B-S And FCFF Model

In recent years,the increasing pressure of environmental protection,the shortage of energy and other problems have led to the increasingly fierce international energy competition,and the development and utilization of new energy has become an important issue for all countries.In 2020,China put forward the concept of "peak carbon and carbon neutrality",which means that China will continue to enhance its nationally determined contribution and adopt more effective policies and measures to achieve peak CARBON dioxide emissions by 2030 and carbon neutrality by 2060.During the 14 th Five-Year Plan period,China will vigorously promote the construction of new energy industries,including hydropower,WIND power and nuclear power,through various policies.In addition to the national policy,the provinces also issued a series of policies to promote rapid development of new energy industry,under this background,the new energy industry will usher in a new opportunity of development,industry merger and acquisition of items is very active,in order to promoting the healthy and benign development of the industry,the industry enterprises to carry on the reasonable and scientific value evaluation and estimation is very important.This thesis firstly analyzes the new energy industry and finds that as an emerging industry,the new energy industry has the characteristics of huge amount of initial investment,long investment period,high technical barriers and vulnerability to policy influence.In order to better consider the future option contained in the project,that is,the value of the real option contained in the investment project,through the analysis of the fit between the new energy listed companies and the real option,it is found that the real option method can make up for the shortcoming of the income method that cannot accurately evaluate the option value.Therefore,this thesis believes that the value evaluation of new energy enterprises should start from the existing assets evaluation and potential assets evaluation of enterprises,respectively applicable to free cash flow model(FCFF)and real option model(B-S),both are indispensable.Subsequently,taking the enterprise itself as the main body of appraisal,based on the purpose of providing value reference for the future restructuring and mergers and acquisitions of LONGi shares,taking all the assets of LONGi Co.,Ltd.,including the assets,liabilities and owners’ equity of LONGi Shares,as the appraisal object,the market value of FCFF cash flow model and B-S option model and the price-to-earnings ratio model in the market method was used to evaluate and estimate its market value on December 31,2020.By comparing the evaluation results with the closing price on the base day of evaluation,it is found that the valuation method combining free cash flow model and real option model can more accurately reflect the value of new energy listed companies.Finally,the thesis is summarized,and the shortcomings of the research are pointed out and the research prospects are put forward.Through the study of the value of new energy listed companies,it can not only provide new ideas for enterprise value evaluation for the decision-making of enterprise management and investors,but also test and confirm the theory and practice,and promote the practical application of real option method in the new energy industry.