Evaluation Of Electricity Generation Enterprise's Value

Our country electric power industry at present is being in with steady steps andhas the foreword the reform stage. The organizational reform, especially the pricingmechanism reform, will have the profound influence to the electricity generationenterprise's value constitution. In 2005, electric power supply tense aspect has not hadthe radical change. The electric power investment further enlarges as well as thecapital market pays more attention to the electric power enterprise's value. Theinvestors, especially the organization investors, including QFII, are deeply interestedin the electricity generation enterprise's value. Along with the gradually opening up inthe electricity generation market, this market will be a competitive and internationalmarket.This article discusses the methods for evaluating the value of listed electricitygeneration enterprises standing in the globalization standpoint, by the boundaryinvestor's angle. . First, we elaborated the multiply-factor stock pricing method'sdeficiency, then we structure two-stage discount free cash flow model to evaluateelectricity generation enterprise's value. Also, we discuss the methods to calculate thenon-risk interest rate, the sovereign risk premium and the equity risk premium.Finally, we discuss how to decide the debt cost and how option value will influencethe value that stock holders own.At the end of the article, considering of the non-listed company, we introducedthe method to calculate beta coefficient and how to give a discount to the weakmobility for the stock holders.