Study On Value Evaluation Of Cultural Media Enterprises

As China’s economy continues to grow,the country is paying increasing attention to cultural soft power.The 13 th Five-Year Plan proposes that by 2020 the cultural industry will become a pillar industry of the national economy.A series of policies are introduced to support the development of cultural and cultural-related industries,benefiting culture and media companies which are moving towards a more vigorous way.Amid continuous economic growth,the consumption level of residents is constantly improving,along with the changes of consumption structure.People are giving more emphasis on spiritual and cultural demands.And technologies such as the Internet and mobile communication grow fast,bringing about new opportunities to culture and media enterprises.However,it is followed by a series of economic activities such as restructuring,listing and M&A,which poses a larger challenge to the valuation of culture and media enterprises—requiring for a higher demand for the accuracy of that valuation.Therefore,it is necessary to explore a suitable way for the valuation of culture and media companies,to enrich the methods of the valuation and to make the value of these companies be assessed in a more reasonable way.Firstly,this paper,based on the research of related businesses valuation at home and abroad,combined with the characteristics and the value influencing factors of culture and media enterprises,analyzes the applicability of the methods of culture and media enterprise valuation,and concludes that there are some limitations of the application of traditional methods into the valuation of culture and media companies.Then,based on all above,the real option method is introduced.By analyzing its applicability to the valuation of the targeted enterprises,this paper believes that the real option method is a feasible way to evaluate the potential value of the targeted enterprises.But the B-S option pricing model is more strict,therefore,this paper considers the actual situation to improve the B-S option pricing model,combines the free cash flow model of the enterprise with the improved B-S option pricing model,and establishes a model suitable for the value evaluation of cultural media enterprises.Finally,this paper takes for instance Zhejiang Huace Film and Television Co.,Ltd.(referred to as “Huace Film and Television”)to use the valuation model adapted to culture and media enterprises,and then analyze and summarize the valuation results.The results show that the potential value brought by the flexibility of enterprisemanagement in business operation is not negligible.The real option method is able to evaluate the potential value of culture and media enterprises in uncertain environments.Combining the income method with the real option method is more objective and reasonable for the evaluation of the value of cultural media enterprises.