Research On The Value Evaluation Of SD Stock Company Based On Real Option Method

As a special commodity,companies participate in market transactions or carry out investment projects,which has increasingly become the internal requirement for investors to invest and companies to carry out acquisitions.With the progress of technology and the needs of the development of new energy vehicles,battery grade solvents have broad development space both at home and around the world.The market share of battery grade solvent products of SD Co.,Ltd.has remained the first in China for a long time.With the increasing expansion of market scale and the upgrading and transformation of the industry,its business development has been expanding,which has attracted the attention of investors.In this situation,how much is the overall value of the company and whether investors can invest in SD Co.,Ltd.has always been the most concerned issue of investors.Therefore,it is necessary to objectively evaluate the value of SD Co.,Ltd.Based on the traditional enterprise valuation method theory and real option theory,this paper uses the traditional valuation method to calculate the current value of SD Co.,Ltd.and the real option method to calculate the potential value of the company.The first part summarizes the research background and significance of domestic and foreign scholars relative to the real option method.The second part defines the main concepts and theories involved in the follow-up research of the article,and makes it clear that the company value evaluation should be divided into two parts: the existing value and the potential value of the company.At the same time,it also compares the advantages,disadvantages and applicability of each evaluation method,so as to lay a theoretical foundation for the following paper.The third part analyzes the internal and external development environment of SD Co.,Ltd.from the aspects of industry development trend,industry competition,company status and market performance,which lays a realistic foundation for evaluating the value of SD Co.,Ltd.The fourth part demonstrates that the real option method is a value evaluation method suitable for SD Co.,Ltd.on the basis of analyzing the difficulties of applying the traditional valuation method to the value evaluation of SD Co.,Ltd.and the applicability of using the real option method.Then,combined with the real option method to evaluate the value of the company,it is based on the initial price of assets,exercise price,volatility,risk-free interest rate and option term parameters,Build the company value evaluation model.The fifth part is the calculation process of the value of SD joint stock company.By comparing the value results calculated based on the discounted free cash flow model with the value results calculated based on the B-S model and the market value,it is concluded that the real option method is more reasonable for the valuation of SD joint stock company.The research shows that the application of real option method to estimate the future value of listed companies is feasible and can provide some investment reference for investors in the market.