The Valuation Of Photovoltaic Company Based On Residual Income Model

The photovoltaic industry has developed rapidly in the past few years,and the cost of integrated power generation has dropped dramatically,gradually approaching the generation-side parity.In the future,it has become a consensus at home and abroad that the proportion of solar energy in the global energy structure will be greatly increased.China's photovoltaic enterprises occupy a monopoly position in all aspects of the photovoltaic industry chain,and it is expected that they will fully enjoy the development dividend of the photovoltaic industry in the future.At present,leading enterprises in photovoltaic industry in China have realized the listing of capital market,so ordinary investors are expected to enjoy the development dividend of photovoltaic industry in the future.In order to better serve the secondary market investors' investment decisions on photovoltaic enterprises,it is necessary to evaluate the value of photovoltaic enterprises.At present,securities institutions and secondary market investors usually use absolute valuation method and relative valuation method to value enterprises.This paper takes LONGi Stock,a representative enterprise of photovoltaic industry,as an example,and uses the operating residual income model as its valuation method.Through the analysis of model theory and application steps,combined with the development trend analysis of photovoltaic industry,the valuation parameters are found and predicted.Finally,the equity value of LONGi Stock is estimated through the operating residual income model.In my opinion,the operating residual income model is a more suitable method for evaluating the value of LONGi Stock.The research of this paper provides a reference for investors in the securities market to make investment decisions,for business managers to understand the value of enterprises,adjust business plans,and for the valuation of other listed companies in the photovoltaic industry.