Applied Research On Real Options Model In The Assessment Of The Value Of New Materials

The new material industry belongs to the current strategic emerging industry,which marks the development level of the industrial technology and science in a country.It plays a fundamental role in the future national economy and social development,and is expected to become a great impetus to the transformation and upgrading of China's manufacturing industry.At present,the domestic new materials business investment,mergers and acquisitions development is booming,how to make a reasonable assessment of the value of new materials business is particularly important.As the new material enterprises have the characteristics of technology-oriented pre-high investment,high risk and high yield,the traditional enterprise value evaluation model has the limitation of the new material enterprise value evaluation.The use of real option model for new material enterprise value assessment takes full account of the uncertainties in the enterprise and the value of management flexibility,which provides the necessary supplement for the value assessment theory.Firstly,the paper reviews the theoretical methods of enterprise value evaluation and real option,then analyzes the characteristics of the new material industry,and then establishes the frame of using the B-S model to evaluate the enterprise value.The key step in evaluating the value of the enterprise is the estimation of the model parameters.The paper analyzes the meaning and usage of the five parameters in the light of the characteristics of the new material enterprises.This paper has put forward the method of estimating the expiration time t of the enterprise.After this,taking the new environmental protection company as an example,the paper evaluates the value of the new material enterprise B-S model value evaluation framework.Finally,the paper puts forward some suggestions on the application of real option model in the value evaluation of new material enterprises.In short,based on the real option method to assess the value of new materials business,better deal with the new material enterprises at this stage of the development of the uncertainty of the problem,and can be a reasonable assessment of its value.The paper has made useful exploration for the new material enterprise value evaluation system,and provides decision support theory for investors and management.