Valuation Of Film And Television Enterprises Based On EVA Revision Model And Real Options Theory

In recent years,as China continues to promote the reform of its cultural system,the cultural industry is in a stage of rapid development.The film and television industry,as an important part of the cultural industry,is of great importance to the development of the national economy,and is also important for the promotion of the country’s soft power and the establishment of a good international image.With the rapid development of China’s film and television industry,its scale is also expanding.In order to improve their competitiveness and occupy an advantageous position in the market,film and cultural enterprises continue to integrate their resources through various means,such as restructuring,mergers and acquisitions,and restructuring.At the same time,various industries also see great potential in film and television enterprises and are competing for investment.Therefore,a reasonable assessment of the value of film and cultural enterprises is important for the orderly development of economic activities in the capital market and the enhancement of the value of film and cultural enterprises.Given the late start of enterprise value assessment in China,the current theoretical system is based on the more mature framework of the West,which has been continuously improved and developed.Although a traditional system of value assessment methods has been developed with the income approach,the market approach and the cost approach as the main frameworks,it is unable to meet the needs of the valuation of cultural enterprises,which have significant differences in terms of core asset composition and product profitability models compared to traditional enterprises.Based on the characteristics of film and cultural enterprises,this paper divides the value of film and cultural enterprises into two parts,one being the value of the enterprise’s existing assets and the other being the value of future options due to various uncertainties.The economic value added method(EVA method)is used to assess the value of the enterprise’s existing assets and the real options method is used to assess the value of the enterprise’s future options,and in assessing the value of existing assets using the EVA method,it is considered that that the EVA method is calculated based on the financial data of the enterprise only and ignores the influence of non-financial factors.Therefore,this paper uses a combined valuation model of "modified EVA + real options method" to conduct a valuation study on Light Media,a film and cultural enterprise.On the one hand,this will enable investors to have a more rational understanding of film and cultural enterprises,especially those that are mainly engaged in film production,and not to overestimate the On the one hand,it will enable investors to have a more rational understanding of film and cultural enterprises,especially those whose main business is film production,and not to overestimate the returns of the projects they will invest in,nor to overlook the potential value they may bring.On the other hand,film and cultural enterprises can be guided to consider not simply the short-term indicators in their financial statements as key items in their business management process,but also the level of EVA,which reflects the true wealth of shareholders,and they should also take into account the potential option value that may be brought about by their own management flexibility.For the valuation industry as a whole,it responds to the current development of the cultural industry and provides a reference for the valuation of film and cultural enterprises.