Research On The Cost Of Real Option In Enterprise Valuation

With the intensification of economical reform and the development of securities business, enterprise valuation become more and more important in field of securities investment, enterprise recombine and value management. But with the spring up of new economic tidal wave, the capability of enterprise such as technic innovation, human resource become the drive factor of enterprise value, these factors are difficult to confirm in traditional accounting rules. Because the traditional valuation model can't evaluate the value of manage flexibility,the estimate of discount rate are too subjectivity,the models are facing more and more challenges, real option which can get over these disadvantanges are widly used.This thesis start with discuss the traditional models of enterprise valuation such as the discount cash flow model, Economic Value Added model and so on, point out the real option can estimate the value of strategic flexibility which is a complementarity to traditional models.This research set out from the standpoint which enterprise is a capability system. analyzing the enterprise capability system to affirm that the capability of creating enterprise value is the only capability which can reflect enterprise'essential character. Then studying the processes of capitalizing of capability and how capability raising the value. Then the thesis point out that the enterprise capability include not only the capability of daily operation but also the capability of strategic flexibility in the future, use the traditional and real option method simultaneity can estimate the enterprise capability and appraise the value of the corporation.By analyzing the origin of the capability, the thesis bring up the viewpoint that the predominance in the competition was set up by perennial investment in capability construction. As a part of the capability, real option also rely on specifical resource which is set up by investment. Explain the relationship between enterprise value constitutes and enterprise'essential, the forming of different kind of capability corresponding to the different payout.Then the thesis discuss how to identify and classify the option payoff , define a new concept called"option cost".Compare to traditional gather of these payout (expenditurized or capitalization) which can't adapt the new situation, define them as the option cost accord to suted rule and the moderate rule in accounting.There are two results on Reclassify the option cost:on the one side,in a series of finance analyzing, reclassity the option cost can improve the result of discount cash flow model by forecast the exactness parameter such as reinvestment rate,increasing rate and so on.Oh the other side,by classify the option cost ,enterprise can ayalse the net income of obtain an option,if the income can't recover the cost,the company can give up obtain the option.by the decision-making process,the model of enterprise valuation is modified,the options which are high maintained can not enhance the enterprise value.In the part of demonstration,the thesis use discount cash flow and real option model analyse three different scene of an enterprise,find out the optimization decision and the vulue under different scene.The result prove that obtain an option sometimes can't enhance the enterprise value.