An Assets Evaluation Research Of Woter Environmental Company In The Income Approach

It is increasingly frequent for environmental protection enterprises conduct economic activities, like listing, restructuring and mergers, venture capital investment at this stage. Therefore, it is necessary for us to assess the value of environmental protection enterprises. The characteristics of the environmental protection enterprises and their venture investment projects with certain uncertainty lead to the inaccurate assessments of their values by traditional assessment methods. On the basis of previous researches, the thesis studies the value evaluation case of Woter environmental protection enterprise, and makes efforts to optimize the traditional income method. Besides, the thesis also gives an additional assessment with option theory to the BOT project within the company, so as to truly and comprehensively reflect the characteristics and value of environmental protection enterprises.First of all, this study analyzes the existing problems of the traditional methods in assessing the value of environmental protection enterprises, such as market value method, income method and cost method. Successively, this study analyzes the advantages and disadvantages of the income method in assessment of the enterprise value in the case of Woter environmental protection company enterprise value appraisal. The results show the main businesses of the comparable companies for discount rate prediction that are very different from that of Woter Company, which cannot fully reflect the risk of Woter. It is generally believed that the revenue forecast period is based on the operation period of BOT project. However, it is found that the income of BOT project accounts for only about 10% of the main business income according to the calculation. Therefore, the conclusion is that it is not appropriate to determine the revenue forecast period based on the operation period of BOT project. In this case, the revenue forecasting process ignores the potential value of the BOT second project. However, the BOT project will be the trend of the air pollution treatment and water pollution treatment business, so the value of this part cannot be ignored.Then, in view of the three problems above, this study evaluates the BOT project of Woter environmental protection company by income method and real option method, which considers the potential profitability of the BOT project. The combination of cash flow method with the real option method makes the prediction results more objective and real. Finally, on the basis of analyses and improvements, this study verifies the rationality of the improvement results by comparing the final closing prices of the case, and provides references for the value assessment of environmental protection enterprise.