Enterprise Value Assessment In Venture Capital

Enterprise Value Assessment is a core issue in Venture Investment. Venture capitalists are usually targeted at the high-tech enterprises in the field at the start-up stage. Due to lack of necessary historical data and accounting data and the expected market value of properties of the uncertainty, there is a big gap when we use the traditional methods of valuation assessment to assess the value of these enterprises. However, as these enterprises are normally involved in the creative and pioneering technology, once mature technology and industrialization, it is possible to obtain excess returns to investors. This is precisely the aim of Venture Capital. Therefore, the accuracy of venture investments in the assessment of the value of great theoretical and practical significance. This paper first describes the theoretical development of venture investment, then an objective analysis of the traditional methods of valuation and its view of the lack in the assessment, the option pricing theory will be introduced to enterprise value assessment. Taken options for the introduction of a value-pricing case the actual application. Through a comparative analysis found that the use of options valuation methods can be more accurate conclusions. Finally use rich and realistic data, using NPV and the Black-Scholes model to assess the value of the formula for the actual business of AMC Case. This paper further empirical analysis of real option pricing ideas to businesses found in the potential value of the important role so that we can have a more comprehensive understanding of the value of the business.