Analysis of Investment in Recent hot-topic companies in Renewable Energy Industry

Abstract

Renewable energy is a forward-looking trend for the development of the energy industry. Recently, 5 renewable energy companies were found in Google search engine, which are highly researched by users, and there are also the 9 largest renewable energy companies. The study explores the question of whether these 5 top renewable energy companies are really remarkable or not compared with the 9 largest companies, and examines the question of which companies should be invested in and which should not.The study uses the residual income model and the multiples valuation model to evaluate the value of a company.The study concludes that the total 5 top companies all have higher risk than the 9 largest companies, which means that none of these 5 companies have a high probability of earning a high return. More specifically, Tesla Inc. is the company where investors have a chance to get a high return, while Gevo and Bloom Energy are two companies that need to be selected carefully. Plug Power and Sunrun are in the middle.