The Study On EV Model Based On Real Option Theory

As we all know, enterprises are the body of economy, and their capabilities, especially their creative capabilities, at a high degree determines a country s macro-economic strength. Therefore, in many market-oriental countries, both the resident and government are concerned about how much value the enterprises around them could bring to their societies. Particularly after the financial market has been established perfectly, the problem about enterprise s value (EV) becomes economic society s focus. In china, with the opening reform going on, the traditional planned economy mode has changed dramatically into the socialistic market economy mode; the issue of EV becomes more and more hot.However, referring to the theoretic study of EV, there are a plenty of achievements, but it is still a long way towards the perfect theory about it. Traditional theory is hard to explain and tackle the difficulties occur in the reality. Furthermore, the author found there is no model to reveal the characters about EV. This paper is based on the deficiency about traditional EV model, utilizing theoretic study and method of numerical analysis, and then found the new mode which could reflect alternative character of EV.There are 4 chapters in this paper: Chapter 1 analyzes the research background and signification of EV, which includes the study of thinking in this paper. Chapter 2 analyzes the relative basic theory of EV; defining the meaning of EV and introduced the detailed source, influence and its specialty of EV. Chapter 3 introduces some traditional models of EV and analyzed their advantages and disadvantages as well as their practical problems. Chapter 4 is the principal part of this paper. It discusses the theory on alternative character of EV, meanwhile, deciding to build a new model of EV and analyzing the parameters of the model using method of numerical value. From this analysis, we can get some conclusions as follow:(1) The variety of enterprise s value is of Marvokivic characteristic , therefore, the enterprise s income in the future can be affected by their currently decision as well as the variety of future environment of enterprise.(2) EV could be considered as the integration of projects which has been carried out and invest opportunity which shouldn t be ignored considering EV.(3) There are different models of traditional EV, but all of which doesn t reflect the value of invest opportunity, so improving is necessary.