The Valuation Of Creativity Enterprise Based On Compound Real Option Illustrated By The Case Of Tudou

As science and technology have been developing rapidly in modern period, the world is coming into the knowledge-driven economy age. The proportion of creative enterprises for in GDP is also increasing and becoming an indispensable economic development power.With creativity enterprises valuation, financing difficulties, intellectual property protection and other issues appearing, it makes the stakeholders to begin to appreciate the accuracy and scientific of valuation of culture creativity enterprises. In recent years, the growing Venture Investment provides an indispensable development opportunity for these enterprises.Nevertheless, the characteristics of creativity is unique, uncertainty and high risk. Under the risk investment in creative enterprises, venture investors have flexible options for future changes. Because of its flexibility, to a certain extent, traditional decision making methods will underestimate the creative enterprise’s intrinsic value. As a result, they fail to get the investor’ s favor and lose the chance to further develop and strengthen themselves.Firstly, this thesis reviews and summarizes the enterprise’s value assessment theories from domestic and foreign scholars especially the real option theory. Secondly, from the perspective of venture capitalists, this paper takes the firm as a whole and emphatically analyzes the characteristics of uncertain and value evaluation, especially pointing out the the shortcomings of traditional evaluations and the superiority of real options approach.Considering the features of the staged investment, this paper builds a multistage compound real options model to measure the change of the value properties. Next,the model was solved by applying the method of Monte Carlo simulation. At last,we use the historical data of five-stage financing to measure the value of the compound option implicated in it. It’s turned out to prove that the method mentioned in this paper can reasonably appraise the value of creative enterprises, consequently guiding VC to make right decision.