Evaluation Of Enterprise Value Of PV Industry Based On Income Approach And Real Option Method

Solar photovoltaic power generation as a form of new energy generation for our country's sustainable development of energy is of great significance.However,due to the relatively low value of the PV industry companies,the theory is not perfect,the value of the PV industry is often underestimated.By using the income approach and the real option method to evaluate the overall value of new energy photovoltaic industry enterprises,the risk of underestimating the value of the photovoltaic industry can be avoided,so that the assessment of the enterprise value of the photovoltaic industry is more accurate and closer to its actual value,Better guide the enterprise value management of PV industry,provide reference for the mergers and reorganizations of PV industry enterprises that frequently occur in recent years,and promote the healthy and orderly development of PV enterprises in China.Starting from the method of enterprise value assessment,this paper analyzes the deficiencies of the income method and other traditional enterprise valuation methods.It explains that the income approach is suitable for evaluating the apparent value of PV enterprises and is not suitable for evaluating the potential value of PV enterprises.On the proposed real options.The real options approach can reasonably assess the future opportunity value of an enterprise,which is mainly reflected in the evaluation of R&D investment and project construction.Therefore,the enterprise value assessment framework that incorporates the real option approach can comprehensively evaluate the value of the PV enterprise.Photovoltaic power generation industry belongs to high-tech industry,especially domestic PV enterprises are facing greater risks.Therefore,it puts forward the value of using real options pricing method to evaluate the opportunity value of PV enterprises and the flexibility of management decision-making.According to the analysis of option trait in PV industry,it is pointed out that the value of option is mainly reflected in three aspects of option attributes:R&D and innovation,national policy and environmental benefit value.Due to the difficulty of quantitative evaluation of R&D and national policies,this paper mainly reflects the environmental benefits of photovoltaic power generation projects for the value of potential options in the photovoltaic industry.This paper regards the environmental benefits as an environmental protection asset and may bring potential profits to the enterprises ability.Through the construction of PV industry's enterprise value evaluation model,the Reward Method is used to evaluate the real value of its explicit assets and the real option method to evaluate the hidden potential option value.Through the analysis and calculation of the main parameters in the income law model and the real option law model,the model of enterprise value assessment in photovoltaic industry is finally determined,which makes the theoretical method practical.Finally,the empirical analysis of the specific value of the PV industry assessment,only the use of income method under the valuation of the value and the actual market value for comparison and found that corporate value is far undervalued.However,the method of using the income method combined with the real option method is closer to the actual market value.Therefore,it is desirable to adopt the method of combining the income method with the real option method.The case analysis proves that it is more scientific and accurate to evaluate the PV industry based on the combination of the return method and the real option method,which is closer to the actual value.This article tries to combine the real option method with the income approach to evaluate the value of the PV industry.Since there are few studies on the valuation of the PV industry,this article uses the income approach combined with the real option method to evaluate the value of the new energy PV enterprises.And reference.At the same time,with the further development of the securities market,the application of the Real Option Law will be improved in the assessment of business.This article also has reference significance for the assessment of practice.