Photovoltaic Power Generation Enterprise Based On EVA And Real Option Study Of Value Evaluation

With the increasing scarcity of traditional energy,the attention of all countries in the world has turned to the exploitation and development of new renewable energy sources.More and more countries around the world are committed to promoting the development of new energy,and adopting corresponding policies and measures.Therefore,the production and application of new energy sources are constantly expanding.Solar energy,with its distinguished advantages,has been a new rising power in the energy production market.Currently,photovoltaic power generation is the most represented approach to the exploitation of new energy sources,with a relatively well established business model and the widest application perspectives.Owing to the booming photovoltaic industry and the support of policies at the national level,the inherent value of photovoltaic power generation enterprises has become more and more apparent.There is an urgent demand for a reasonable assessment method to be used in the practice of assessing the value of photovoltaic power generation enterprises.For both policies and markets oriented photovoltaic power generation enterprises,the investment projects have a major uncertainty in terms of future returns.Part of the investment made by enterprises has the characteristics of the real options.In reality,the potential value of this part is often ignored,and traditional methods of enterprise valuation are incapable of data quantification,which results in the photovoltaic power generation enterprises being underestimated in the capital market.With this in mind,this essay chooses JA SOLAR as the subject of this study to discuss and research the assessment of the value of photovoltaic power generation enterprises.Through the analysis of the development state of the photovoltaic industry,the features of photovoltaic power generation enterprises and the valuation characteristics,this essay discovers the potential value that photovoltaic power generation can bring to the firms in the uncertainty during the future management and the investment projects which they will invest in.The traditional single method of assessment has a certain limitation,as it usually ignores this potential value,which leads to an underestimation of the inherent value of the photovoltaic power generation enterprise.The real options methodology has shown to be well applicable in the assessment of the potential value of photovoltaic power generation enterprises.Hence,this essay takes into account the combination of the EVA model and the real options model,classifying the whole value of the photovoltaic enterprise into the current profit-making value of the existing assets as estimate by EVA model and the potential value of project of the future as estimate by the real options model.The influence of the risk specific to the subject enterprise and the dividend policy of the enterprise on the value of the enterprise into the valuation model.In adding to this,the influence of the risks specific to the subject enterprise and the dividend policy on the value of the enterprise are fully discussed during the estimation process.In considering the reasonableness of the value assessment model built in this paper,JA SOLAR,which is a well-known and symbolic enterprise in the photovoltaic industry,has been selected as an object for the analysis of this research.At last,this paper compared and analyzed the assessment results with the real market value of the enterprise as at the base date of the evaluation,as well as pointed out the lack of research and put forward the prospective.