Study On Estimation Of LY High-tech Enterprises Listed Company Value

LY Company was a high-tech private enterprise established for over ten years. Today,high-tech industry develops so rapidly that companies in this industry had to research anddevelop in a coherent speed and present the products to the market as soon as possible. Salesof the products had to be increased, in terms of speed, as these companies needed better flowof cash to maintain the production chain running in a healthy cycle. As a result, to be listed inthe stock market became an important subject for them. When a company prepared for IPO, itwas crucial to learn its’ value. As this value would directly affect its’ stock price. This was thesubject that the board and management cared most in LY. To analyze the company value ofLY scientifically was importantly to investors and interest-related personnel for them to makecorrect decision.This thesis first studied several common value assessment methods, and then found outone most suitable for LY. Eventually, by making use of the value assessment methodcalculated the overall value of LY. The followings were six steps used for analysis.First, the thesis introduced cost method, market method, revenue method and physicaloption method. It then compared these methods from the angles of principle, hypothesis,merits and drawbacks, usability. Secondly, the thesis introduced the characteristics anddifficulties of running a high-tech company. It selected the combination method of free cashflow and physical option to calculate the value of LY. Thirdly, the thesis analyzed theindustrial environment and financial statues of LY. Fourthly, the thesis made use of the freecash flow model to analyze LY’s business value. Fifthly, it made use of physical model tocalculate LY’s potential value. Lastly, the thesis calculated LY’s overall value, analyzedthrough multi sensitivity model to get the value range or LY.From the research of this thesis, I had a better understanding of how to assess the valueof a high-tech company. By making use of the LY case study, I had a more in depth study ofthe assessment model. From certain angle, this thesis covered lack in the study of high-techcompany value assessment study. It also enriched the field of physical option study. From theLY value assessment, the thesis had given a guide for LY to go IPO. It also providedguideline for LY’s management to carry out value management, equity trading andinvestment. This thesis could also be a reference for company of the same industry or even ofother industry.