The Research On The Evaluation Of China Fluorochemical Industry Listing Corporation Based On Real Option Theory

As an emerging strategic high-tech industry, fluorochemical industry is during the period of high speed growth in recent years. How to determine the investment value of these emerging industry companies has became a valuable research topic. And the most important point is to choose the valuation method appropriately.Real option method is a kind of concept that uses the analysis method of financial options to analyze the valuation of the underlying physical assets. The academic has researched on it over 40 years and constructed some quantitative analysis methods of valuation for it. Among the most widely used and also relatively precise one is Black-Scholes model. It bases on a valuation method by real option concept without any risk tendency.Firstly,this paper summarizes common valuation methods and detailed generalizes the real option method. And then use the concept of real options with B-S model to analyze the valuation of representative listed companies in fluorochemical industry after feasibility analysis. After that this paper also analyzes the present value of the subsidy mechanism for cleaning production of fluorochemical industry and combined it into the valuation result. In the end this paper analyzes the difference between real option method and traditional relative valuation method,then comes to the conclusion that the result from real option method tends to be free of sentiment affecting. Meanwhile not sensitive to some parameters such as risk-free interest rate, investment period,etc. So the result from real option method shows little effect by subjectivity and can be close to intrinsic value of target enterprise.Hope to provide some reference for the relevant researchers and investors.