E Research On The Application Of Real Option In The Real Estate Enterprise Investment Decision-making

In the modern society, the development of all walks of life is inseparable from the market this big environment, also, do not underestimate the influence of the market of real estate industry, and has characteristics of real estate: the net inflow, long development cycle, long payback period of investment and uncertainty is high, the investment project success depends largely on the stages the accuracy of the prediction for the future.The current domestic real estate industry in China in the project investment decision-making usually by themselves or entrust a specialized intermediary institution to evaluate the feasibility of the project, and the financial analysis is relatively important part of the feasibility study report, usually through the calculation of internal rate of return of the project, net present value and payback period of investment projects and other methods to measure, one of the main methods is discounted cash flow method,this method has some shortcomings: without considering the flexibility of management decision makers, not the perfect deal with uncertainty in the decision-making of real estate development project to bring the value of this for a larger uncertainty of the real estate industry there are a lot of threat. And real option is based on the theory of financial options and derivatives of a new type of investment decision-making method,to a certain extent, to expand and improve the traditional decision-making method for real estate enterprises laid a solid foundation to make better investment decisions.This paper firstly combed the domestic and foreign newest theoretical achievement about real options, discusses the current research status in China. Through the review and analysis of the financial option, summarizes the characteristics of real option theory and compared with. Secondly, from the enterprise facing the uncertainty of the uncertainty of market demand, study its relationship with the enterprise investment behavior, indirect evidence uncertainty on the value of the real estate enterprise investment project has a certain impact. Then, on the basis of the correlation study has been clear about the application of real options thinking and its applicable scope, and B-s model used for investment decision of real estate industry, through a real estate project investment decision of changzhi city cases summarized the application of real option method and steps. Finally elaborated the research conclusion of this article andstudy hard to overcome difficulties and in the process of real option for the future wider application prospect.