Application Of Real Option Model In Valuation Of Special Town Projects Under PPP Model

In recent years,under the strong support of policies,the projects of special towns in our country have blossomed and developed rapidly.The PPP model based on public-private partnerships has solved some practical problems and created institutional conditions for guiding the participation of social capital in the construction of special towns.The value assessment of the special town PPP project runs through various stages such as investment decision-making of the project,division of rights and responsibilities of the agreement subject,evaluation of project performance,etc.A scientific valuation method helps the government and private investors to make reasonable judgments on the target project,and realize the maximum value of the project.This paper reviews the research status of the PPP model,special town projects,and real option pricing methods.It explains the operating mode of the special town project under PPP through policy interpretation and practical research and compares the characteristics of the cash flow discount method with the real option pricing method.This paper analyzes the applicability of the real option method to the valuation of special town projects under PPP,conducts field surveys and public data collection on the special town projects involved in the case,and tries to use the cash flow discount method to calculate the value of the special town project under PPP.At the same time,it is noticed that the traditional discounted cash flow method does not take the value of real options contained in the PPP projects into account.Therefore,it has greater limitations,and the discounted cash flow value should be added to the real option value to obtain relative fairness and reasonableness.In the classical B-S real option model,the concept of fuzzy number needs to be introduced,and the volatility of the underlying asset price and the option execution price are analyzed according to characteristics of the special town project,and the parameters are processed in a fuzzy manner to calculate the interval value of the real option.With the expectation value,the description of project uncertainty is realized to a greater extent,and a more scientific and rational decision-making basis is provided for the subject of the PPP agreement.