Photovoltaic Enterprises Value Evaluation Based On Improved FCFF Model

The establishment of the "double carbon" goal has pointed out the direction for the long-term development of domestic clean energy.China will promote the energy revolution during the "Fourteenth Five Year Plan" period and vigorously improve the scale of wind power and photovoltaic power generation.As the main power mode of renewable energy,photovoltaic power generation will play a key role in various fields and scenarios to achieve carbon neutrality.With the acceleration of the global carbon neutral trend,the continuous progress of photovoltaic industry technology and the decline of photovoltaic power cost,the competition in the photovoltaic industry has intensified,and more and more capital and enterprises have poured into the photovoltaic industry.In the future,the value judgment and measurement of photovoltaic enterprises are worth analyzing and studying.A reasonable and effective valuation of photovoltaic enterprises can provide value reference for all parties and promote photovoltaic enterprises to better serve the realization of the "dual carbon" goal.This paper starts with the relevant literature on the research of enterprise value evaluation theory and evaluation method,enterprise free cash flow and Monte Carlo simulation in value evaluation,and lays a more detailed theoretical foundation for the enterprise value evaluation of photovoltaic enterprises by sorting out the literature on these three aspects;Then it introduces the PV enterprises,focusing on the current development characteristics and trends.At the same time,through the research and analysis of macro,meso and micro levels,it describes the various factors that affect the current PV enterprise value;Then,combined with the current development of photovoltaic enterprises,through analyzing the limitations and applicability of enterprise value evaluation methods,the Free Cash Flow(FCFF)model was selected to evaluate the value of photovoltaic enterprises.At the same time,from the perspective of the dynamic discount rate and the Monte Carlo simulation of the sustainability period,the FCFF model was made dynamic to a certain extent to improve the model;Finally,taking Longji Corporation as a case,the above improved FCFF model is used to evaluate the enterprise value,and the market value is compared to verify the rationality and effectiveness of the evaluation method for photovoltaic enterprise value.This paper draws the following conclusions through the analysis of the factors affecting the value of photovoltaic enterprises and the specific case of Longji Shares:First,photovoltaic enterprises present a variety of influencing factors with new situations at present;Secondly,theoretically,FCFF model is suitable for PV enterprise value evaluation,and the improved FCFF model has more advantages;Third,in the specific case analysis,the valuation results of the FCFF model and the improved FCFF model are close to the market value on the benchmark date,but the results of the improved FCFF model are more accurate,which to some extent can better provide value reference for the valuation of photovoltaic enterprises and stakeholders.