Research On The Valuation Of LONGi Shares Based On FCFF Model

As a relatively mature industry in the new energy industrial structure system,the photovoltaic industry is essential to the fulfillment of the goal for carbon peak and carbon neutrality and China's energy upgrading as part of China's efforts to achieve peak carbon emissions and carbon neutrality.The breakthroughs on core technologies enable China's photovoltaic enterprises to stay ahead as technological leaders and in cost control,shaping global competitiveness in international market.Thus,based on the analysis on photovoltaic industry,China has emerged as the country with the world's largest photovoltaic industry backed by favorable national policies,promising a huge market potential.As photovoltaic enterprises will enter the capital market,the effective and holistic value evaluation for photovoltaic corporations will function as a reference for decision makers and investors.Therefore,an appropriate evaluation method is increasingly critical to the comprehensive and accurate value evaluation for photovoltaic enterprises.This thesis works to conduct the value evaluation research on the shares of LONGi Green Energy Technology Co.,Ltd(LONGi for short)by literature research method,case analysis method and comparative analysis method on the basis of the time value of money theory,effective market theory and capital asset pricing theory and other relevant concepts of enterprise value.The author first conducts detailed analysis of the case study of the development trend of the photovoltaic industry and the operation results of LONGi.to explore the applicability of various valuation methods based on the reality of LONGi.And the author finds that the FCFF model under the income method is more accurate and suitable for LONGi.Then the model is applied to evaluate the value of LONGi to compare the evaluation results with the stock price on the evaluation day so as to prove the accuracy of FCFF model in enterprise value evaluation.Finally,the author proposes that LONGi can move up the value chain by larger shares of domestic and foreign markets,cost control and strong research and development as well as a leading technological innovator in accordance with the sensitivity analysis.