Investment Value Analysis Of Enterprise Internet Of Things Project Based On Real Options

On June 6,2019,the issuance of 5G commercial licenses marked the formal opening of 5G gate in China.China ushered in the wave of 5G technological change.5G technology promoted economic structural innovation and rapid economic growth.At the same time,the Internet of Things,automatic driving,VR and other technologies were further developed with the promotion of 5G,and many enterprises even promoted it.As an important project for the future development of enterprises,we hope to promote the progress and development of enterprises through this project.Whether these projects have certain intrinsic value,and whether they can create profits for enterprises,we need a set of reasonable and fair value evaluation system as support.However,due to the unique nature of such projects,the traditional methods of value assessment often have some limitations in their evaluation.Based on this research background,this paper takes Xiaomi group's Internet of things project as a case study,and studies its unique value creation mode.First,it analyzes the value characteristics and valuation difficulties of the project.On this basis,it discusses the limitations of the income method commonly used by investment institutions in the value evaluation of the Internet of things project.Then,this paper introduces the related development and characteristics of real option theory,and puts forward two new perspectives to understand the value of Internet of things projects: the value of existing assets and potential investment opportunities of enterprises,and then uses the real option valuation model to evaluate the rationality of applying the real option method to analyze the investment value of Internet of things projects.Finally,this paper uses income method and real option method to evaluate the value of Xiaomi group's Internet of things project,and compares the results of the two valuation methods to further reflect the advantages of real option method,and puts forward strategic investment suggestions based on the valuation results.The innovation of this paper is to study the valuation of emerging development projects from the perspective of value realization model,so as to explore the impact of this project on the overall value of enterprises.This paper also uses the method of combining theoretical cases to elaborate the application steps and evaluation principles of real option method in Internet of Things projects,and makes a useful exploration on the value evaluation of such projects.