Study On The Correlation Between Investment And Value Evaluation Of Electric Listing Corporation

Electric power industry is the fundamental industry of the national economy, plays an important role in national economy and people’s life. In recent years, The development of country’s economy promote the growth of electricity demand, the scale of the national power construction investment maintain rapid growth, the investment of power grid continues to accelerate.At present, the power industry is still in a monopoly, both the openness and competition of enterprise is low, but the overall profitability of the industry is strong. However, the low utilization rate is in deep contrast with continued rise investment,a lot of investment has no benefit. A large increase in enterprise assets,but the profit level is declined, shows that the benefits of the assets have not been fully played, unreasonable asset allocation and waste of natural resource is the main problem, the assets quality and the profitability of enterprises should be improved. At the same time, the amount of cash balance is large, resulting in a large number of idle funds.The right investment decision is an important means to improve the profitability, improve corporate asset quality and value creation. This study aims to explore the correlation between investment and enterprise value.To increase the value of enterprise as the core.Firstly, this paper makes a general introduction to the characteristics and Prospect of the industry,statistical and analysis of the power sector business investment, the liquidity situation. Secondly, In view of the uniqueness of the electric power industry investment, analyze the impact of different investment decisions on electricity enterprise asset quality, profitability of investment. Then based on the observation and statistics of the company’s investment decision-making, a regression model is established to find the relationship between the investment cash flow and the residual income. Application the enterprise value evaluation model value different investment amount of cash, and then get the estimate of the value of the company, So that we can invest in the value of investment to power enterprises more close to the real situation, adjust the business combination appropriately,help the enterprises choose a better solution in the investment decision, to get more investment benefit and achieve more added value.reduce unnecessary over investment, prevent risks, and promote the development of China’s power industry.