Research On The Method And Application Of Enterprise Value Measurement

Electric power equipment manufacturing industry shoulder the important task of providing various equipment for the production,transmission,transformation,distribution and use of electric energy and other fields.The production capacity and t echnical level of power equipment determine the operation efficiency and quality of power industry.With the further development of power equipment manufacturing,investors need to measure the enterprise's overall value more accurately and completely.This article takes the enterprise value as the instruction,and takes the listed companies of electric power equipment manufacture industry as the research object.First of all,through the review of the relevant literature,this article listed several enterprise value measurement methods which are widely used at home and abroad,then compares the advantages and disadvantages of these methods to obtain the measurement methods chosen in this paper are the real option model and discounted cash flow model.Then,u sing the combination of normative research and empirical research,the real option model is used to measure the value of the sample company based on the characteristics,current situation and risk analysis of power equipment manufacturing industry,and the sensitivity of important parameters in the real option model are analyzed.From the results it can be found that there is a positive correlation between the change of the enterprise value measurement result and the change of these four parameters: underlying asset S,the underlying asset volatility ?,the execution period T,and the risk-free rate r.In the sensitive degree,the sensitivity of underlying asset S and underlying asset volatility ? is the highest,which is much higher than other parameters has the greatest impact on business value.At the same time,this paper uses the main method of enterprise value measurement—discounted cash flow model to measure the intrinsic value of sample companies.Finally,the enterprise value,which is calculated by real option valuation method and discounted cash flow method,is compared with market value,correlation analysis and regression analysis respectively.It can be seen from the final result that,the value of the real option method is higher than the market value,and this part of the difference is the real option that the enterprise has because of the uncertainty.Although the two methods of enterprise value measurement deviate from the true value of the enterprise to some extent,the results of the real option method are more correlated with the market value,which shows that the real option model is accurate and has less deviation from the market value.The real option model is accurate and reasonable in the enterprise value measurement of listed companies in the electric power equipment manufacturing industry in our country.The purpose of this paper is to study the enterprise value measurement method,especially the real option pricing theory,in order to further improve the enterprise value measurement methods and methods.Meanwhile,it contributes to exploring enterprise value measurement system which is in line with China's capital market.