The Real Option Approach To Business Valuation In Film Industry

According to the National Bureau of Statistics on GDP,we can know that the tertiary industry is developing rapidly. As a part of the tertiary industry,film industry has a very important role to gross domestic product.We put forward higher requirements in assessing the value of movie companies,also as the assessment industry,with the gradual increase in the importance of the film business.However,the assessment of industry is still in the development stage, not mature yet,especially the assessment of movie companies fall further behind, and could not even form a complete system in China, compared with the developed countries such as Eurpe,America,Japan and South Korea. So that people have an not accurate understanding on the value of the movie business. All along, the traditional evaluation methods are mainly based on costing, market approach and income approach, asset appraisal firm assess the actual assets with the traditional assessment methods.But, these three assessment methods has its own shortcomings and the respective application conditions so that can not use to assess the value of the movie business. In order to make the results of enterprise value evaluation more fair and accurate, this article introduces real option method to assessment film enterprise value.In this paper, from theory to practice, first of all, this paper discusses the relevant evaluation method, then the method of real options in the movie the applicability of the enterprise value evaluation, the final selection of CH company actual enterprise value assessment. By means of CH company value assessment to demonstrate the real option method is applied to the assessment of enterprise value of a movie can make evaluation results more reasonable.I hope it is possible to supplement the traditional assessment methods,and it can make the theoretical of assessment industry tend to complete, and it can bring a good reference for the assessment practices by writing this paper.