The Discussion On Evaluation Approaches Of High-tech Enterprises Based On Lifecycle

In the 21st century competition lies in the knowledge, and the high-tech development has become a main characteristic in the knowledge economy era, the high-tech industry is becoming the biggest driver in promoting economy development. However, both the soaring of the high-tech stock price and NASDAQ's almost collapsing are because that no method can exactly evaluate the price of high-tech, especially because that the actual method ignores the factor of flexibility.There are four chapters:First chapter mainly outlines the general theory of evaluation appraisal and analyzes the traditional appraisal method its compatibility, mainly emphases on the DCF method. Then the second chapter introduces some basic concepts and valuation trait of high-tech enterprise, and mainly embarks from lifecycle to analyze the reason why the tradition method doesn't suit for this kind of enterprise, the challenges to tradition method when facing hith-tech enterprise? After the analysis above, the third chapter summarizes that the reasonable evaluation method is the one combining DCF method and OPM based on the lifecycle, then produces detailed method after introducing the real option theory. The fourth chapter uses a typical case, Shanghai Kehua Bio-engineering Co. Ltd, which is a listing company to prove the validity of the new method.This article considers the value of the high-tech enterprise origins form the available profitability and the potential profitability, the biggest difference between the high-tech enterprise and traditional enterprise is that the potential profitability creates more value than traditional company. Based on the introduction above, the article draw into the lifecycle of high-tech enterprise. After the analysis of the trait of high-tech enterprise's lifecycle, we obtain that the discounted cash flow (DCF) method cannot completely appraisal the value of enterprise with different lifecycle, it is not only because DCF method is not able to appraise value of the flexibility, but also because the available profitability and potential profitability play a different role as the lifecycle changes. Faced with the defect of DCF method, the real option theory gives us the...