Valuation Research Of Listed Companies In Artificial Intelligence Industry Based On Real Option Method

In recent years,driven by hot events and national policies,the Artificial Intelligence(AI)industry has become a hot spot of concern to all sectors of society.Industry giants are entering this arena one after another,and start-ups are trying to take a slice of this pie as well.In China's stock market,the AI sector has also attracted lots of attention from investors.The stock prices of hot companies have reached new highs,and hot concepts have emerged one by one.In the field of venture capital,investment activities for AI companies are unprecedentedly active,and the amount of investment continues to increase.In this situation,choosing a suitable valuation method and reasonably evaluating the value of the relevant company is a course that rational investors must do.This paper sorts out the characteristics and applicability of different valuation models(absolute valuation method,relative valuation method and real option method),analyzes the current situation of the AI industry and the cycle characteristics of AI companies,and discusses the applicability of real option method.Then,the real option method is used to conduct a valuation study on the listed company NavInfo,which specializes in the field of automatic driving.In addition,the valuation results are verified against the stock prices of the relevant companies.Through comparative study,this paper finds that the real option method can obtain more accurate valuation results than the discounted cash flow method.The real option method incorporates the uncertainty in running a business,and prices the management's expertise,thus better reflecting the value of AI companies.Finally,this paper analyzes the shortcomings in the research and raises expectations for future research work,in a hope to provide some help to the stakeholders.