Application Study Of Real Option Method In M&A Valuation Of S Company

New energy is the main energy source for future development.The development of new energy industry in a country directly affects its position in the future world economy.China's photovoltaic power generation projects in the field of high and new technology to maintain a certain advantage.Based on solar photovoltaic industry,as the representative of the new energy will be based on the new energy industry and the value structure of enterprise is analyzed,found that the traditional evaluation methods(discounted cash flow method)for the evaluation of this type enterprise cannot properly handle,limitations exist separate using this method,in order to solve these limitations,the introduction of the real option theory,and analyzes its feasibility,according to the enterprise value,the new energy enterprise value can be divided into the stability of the existing assets to create value and potential investment opportunity to bring the intrinsic value of two parts,thus more accurate assessment of the overall value of the new energy sector.This paper selected S company,a new energy enterprise,as an example,combined with market information,financial data of the company and relevant materials,discussed the feasibility of real options on the basis of the traditional valuation model,evaluated the implied option value,and obtained the overall value of S company.Evaluation of two variables for sensitivity analysis of important parameters in the model,the coefficient of variation is further evidence that B-S real option model are smaller,more stable,is superior to the traditional model of discount cash flow method can accurately assess the value of the company S more,to the new energy enterprise mergers and acquisitions of other enterprises valuation reference from time to tome,finally,summarized and presented the shortcomings in the course of study.