Discussion On Valuation Of Photovoltaic Enterprises Based On EVA-Mutation Series Method

In October 1973,the Arab oil exporting countries embargoed oil,causing global oil prices to soar,and the outbreak of the "oil crisis",which stimulated governments around the world to support and develop new energy companies.tilt.In 2018,the "double-reverse" in Europe and the United States ended.Low-cost and high-efficiency photovoltaic technology has also stimulated the expansion of global demand.The experience and channel advantages of Chinese photovoltaic companies in developing overseas have also become their first-mover advantages in competing for the global market.In fact,after the industry reshuffle that year,my country’s photovoltaic enterprises have become global leaders.Almost all key links in the industry,such as polysilicon,silicon wafers,batteries,components,etc.,are dominated by Chinese enterprises.In addition,starting from 2021,the Party Central Committee and the State Council have placed energy conservation work at an unprecedented height,and made a series of decisions and arrangements,which effectively supported the development of the new energy industry.Under the blessing of these factors,photovoltaic companies have entered the stage of scale expansion and began to seek equity financing such as corporate listing,additional issuance and rights issue,etc.These financing behaviors are closely related to corporate valuation research.Cost method,market method and income method are the three traditional valuation methods commonly used in the valuation of PV companies at home and abroad.Due to the late rise of the photovoltaic industry and its own particularities,there are some shortcomings in the application of traditional valuation methods to the valuation of photovoltaic enterprises:accounting profits cannot truly evaluate the real business performance of enterprises,the expense of R&D investment underestimates the profits of enterprises,and equity capital Costs are ignored and the value of non-financial elements of the business is not easily measured.Based on the above analysis,this thesis uses the knowledge of the Balanced Scorecard to comprehensively analyze the influencing factors of enterprise value,integrate the advantages of EVA and the mutation series method,establish a hybrid model,and predict the enterprise value of Sungrow.The new valuation model is named " EVA-Mutational Series Method ".The EVA-Mutational Series Method adjusts the accounting profit of the company and truly reflects the business performance of the company;capitalizes the R&D expenses to reflect the future growth potential of the company;pays attention to the opportunity cost of shareholder capital and emphasizes the creation of shareholder value;The numerical method calculates the financial value weight of the enterprise,which indirectly reveals the value of the non-financial factors of the enterprise.The main content of this thesis is introduced as follows: Chapter 1,firstly,briefly expounds the background and significance of the topic selection of the thesis,and then gives a theoretical overview of EVA,mutation series method and the theory of value evaluation of photovoltaic enterprises;Chapter 2 introduces The concept of photovoltaic enterprises,operating characteristics,factors affecting valuation and common valuation methods are discussed.Then it introduces the concept and principle of EVA-Mutational Series Method,and then sorts out the shortcomings of traditional valuation methods applied to photovoltaic enterprises.In view of the insufficiency of traditional valuation methods,this thesis expounds the necessity and feasibility of combining EVA with the mutation series method,to pave the way for the case introduction and valuation model construction of PV enterprise valuation methods below.The third chapter is the case introduction and the construction process of EVA-Mutational Series Method.This chapter first introduces the basic situation of Sungrow,and then,on the basis of reviewing the insufficiency of the application of traditional valuation methods in the photovoltaic industry in Chapter 2,it describes in detail the difficulties encountered by Sungrow in valuation,and finds that the fluctuation of Sungrow’s gross profit margin leads to Underestimating its enterprise value,the expense of R&D investment "encourages" the short-term profit-seeking behavior of enterprises.Equity financing does not consider the opportunity cost of equity capital and the difficulty of measuring the value of non-financial factors of the enterprise.Combined with the above analysis,it is considered necessary and feasible to use the EVA-Mutational Series Method to estimate Sungrow.The fourth chapter is the case study of the EVA-catastrophic series valuation model.This chapter applies the EVA-Mutational Series Method to the valuation analysis of Sungrow to calculate the enterprise value of Sungrow on a specific date.Through the comparative analysis with the market value of listed companies,it is concluded that the EVA-Mutational Series Method has a better valuation effect.The fifth chapter summarizes and summarizes the thesis,and on this basis,gives suggestions from three levels of managers,investors and regulators.