The New Method Driving From Weston And Its Application Research To High-tech Corporate Evaluation

The industry of high-tech companies is almost rising and speeding. High-tech corporates always develop with its products lifecycle. Different from traditional corporates, the lifecycle of high-tech corporates is obvious and each phase has its own trait. The corporate value advances through spanning different phases. So it is important to evaluate the corporate by considering lifecycle. Furthermore, traditional valuation method is inapplicable because of high revenue and high risk of high-tech corporates. And the methods in being are objection, so it is benefit discussion to study the preferable valuation mehods to high-tech corporates.Firstly, valuation theories have been discussed in this paper. Then we put forward the model deriving from Weston after comparing and analysing the advantage and disadvantage of three traditional valuation methods. In this paper, we make application research to TSINGHUA TONGFANG CO., LTD by the model deriving from Weston. The empirical result proved well.The empirical results indicate DCFF+Black-scholes have error to evaluate the high-tech corporates because it is lack of considering investment rate and forecasts simply. While the model deriving from Weston is preferred, because it cannot only remedy the limitation of the traditional methods, but also forecast coporate relatively realisticly through considering the corporate lifecycle.