Valuation Of Camel Group Based On Real Options Method

To meet the needs of capital market investors and company acquisitions,the company itself is often valued in the market as a commodity or an investment project.With the advancement of technology and the need for the development of new energy vehicles,the battery manufacturing industry has developed rapidly,making great strides in product design,variety categories,product performance,etc.Its application fields have also been expanding and playing an extremely important role in communication,transportation,military,electric power,etc.Camel,as one of the leading brands in the battery manufacturing industry,has been ranked among the top ten in the industry for years.With the continuous expansion of the market scale and the upgrading and transformation of the industry,its business development has been expanding and has attracted the attention of investors.In this context,how big is the market value of the company and the potential value of the company,and whether it can be used as an investment,becomes the most important concern for investors.Therefore,it is necessary to objectively assess the value of the company.As one of the methods to evaluate the firm value,the real options method places great emphasis on the value of flexible decisions that can fully take into account the flexibility of the market and the company’s strategy.For this reason,this paper chooses to establish a valuation system based on this method to assess the value of Camel companies.Chapter 1,based on the analysis of the background and significance of this issue,this paper reviews the literature on company value assessment based on value management theory and finds that the real options method is more suitable for assessing the value of companies,but there are also areas for further refinement and improvement,based on which the framework for assessing the value of Camel companies is determined.Chapter 2 defines the main concepts and theories involved in the subsequent research of this paper,and clarifies that the company value assessment is to be carried out in two parts: the existing value and the potential value.The advantages,disadvantages and applicability of each valuation method are also compared to lay the theoretical foundation for the subsequent paper.Chapter 3 analyzes the internal and external development environment in which the company is located in terms of the industry development trend,the company’s industry status,the social demand for environmental protection,the R&D and innovation capability,the company’s marketing strategy and the financial situation in the context of Camel’s development,and lays a realistic foundation for assessing the company’s value.Chapter 4,based on the analysis of the difficulties of Camel’s value assessment and the applicability of applying the real option method,argues that the real option method is the most suitable assessment method for Camel’s situation,and then constructs a value assessment model for the battery manufacturing company based on the initial price of assets,exercise price,volatility,risk-free interest rate and option term parameters in conjunction with the process of assessing the company’s value by the real option method.Chapter 5 classifies Camel’s value drivers according to the company’s existing operating value and the company’s future growth value,and starts with the assessment of the company’s existing value,applies the real options valuation model to assess the company’s potential value,and finally estimates the overall value of Camel.The study concludes that the real option method can be used to effectively estimate the future growth value of listed battery manufacturing companies to compensate for the shortcomings of traditional valuation methods,which can provide investors with investment references.