Value Evaluation Of Waste-to-Energy Enterprises Based On FCFF And B-S Model

With the improvement of living standards,the rate of increase in the amount of domestic waste has also continued to increase,and how to deal with waste has become a worldwide topic.Because of the concept of environmental protection and resource recycling,as well as technological progress,waste has also become a power generation resource.It is particularly important to reasonably judge the value of the enterprise,which can provide important guidance for the subsequent development of the enterprise.When choosing the traditional evaluation method,the analysis found that the traditional evaluation method ignored the environmental benefits of waste-to-energy and the potential benefits that it can bring.Therefore,a new value evaluation method was searched for the capital operation and corporate financing investment of active waste incineration power generation enterprises.It has direct guidance and reference significance.First of all,this thesis explains the development status of waste-to-energy and its future development prospects.Through the literature review,the specific application of the two evaluation methods used in this thesis is discussed,and the evaluation methods of some environmental protection power generation enterprises are also listed as a reference.Then it analyzes the concept,advantages and disadvantages of traditional evaluation methods,as well as the reasons why they are not suitable for evaluating the value of waste-to-energy.At the same time,the applicability of FCFF and B-S models,as well as specific formulas and usage methods,are introduced.Secondly,it introduces the case of this thesis Quan Ling Waste-to-energy Power Plant,analyzes its cost structure,predicts its future income status,uses FCFF to complete the real value assessment of waste-to-energy enterprises,and calculates the real value of waste-to-energy enterprises.536.36 million yuan,which is lower than the capital invested at the initial stage of its construction.Therefore,it can be seen that the result assessed by FCFF underestimates its value;then by introducing power generation,adjusting the volatility,and using the B-S model to complete the option value of waste power generation.The option value of waste-to-energy enterprise was obtained as 377.04 million yuan,then Monte Carlo and sensitivity analysis was carried out.The value of the Quan Ling waste-to-energy plant is 913.4 million yuan by adding up the value of the entity and the option,and by comparing it with the value of the waste-to-energy plant with the same capacity in the market,it is found that the evaluation result is reasonable,indicating that the selected model is an asset evaluation of the industry.Has strong applicability.Finally,the shortcomings of this thesis and further research directions are put forward,and a summary is made.This thesis believes that the value assessment of waste-to-energy plants should not only consider the economic value,but also the potential value brought by the enterprises’ rights to expand,shrink,give up,and choose,and also consider the environmental benefits it can bring.The research shows that introducing the idea of options into waste incineration power generation enterprises can increase the traditional evaluation value of the enterprises,and provide new and more operational calculation ideas and methods for the value evaluation of similar projects and enterprises.Evaluation is also instructive.Reasonable assessment of the value of waste-to-energy plants can also enable more and more companies to devote themselves to the waste-to-energy industry,attract more investment and achieve better development.