High-tech Listed Company Valuation Method Research

In the era of knowledge economy, high-tech industry is accounting formore and more proportion of the national economy, and is taking a more andmore significant place. As an important productivity and a sunrise industry,high-tech is growing the fastest in the world which is also the most intensiveindustry in information technology. High-tech industry’s size anddevelopment level of a country can in a great extent determine the mode ofeconomic growth, and determine a country’s competitive status, and finallythe employment structure and income levels.In general, high-tech industry has higher requirement for the complexityof product technology, and higher proportion of scientific researcher andhigher value-added products. There’s no uniform standard for theidentification of what’s high-tech industry among countries. Our country putsmain emphasis on corporate high-tech, especially the proportion ofresearchers, R&D expenditure percentage of total amount of sales revenue ofthe year, and whether the main technology covers several aspects of thehigh-tech fields. High-tech companies have characteristics different fromother companies, for example the high-speed growth, high income and highrisk, more weight of intangible assets, short life cycle and so on.High-tech companies have so many features that we can not follow thetraditional methods to assess their value. Compared with mature companies,high-tech companies have higher risk and return. This is because high-techcompanies face more uncertainty and the right to choose, while the traditionalmethods do not take into account these uncertainties and selection rights.We start from analyzing the concept of high-tech enterprises, and thensum the main characteristics of them. After the introduction of some popularevaluation theory, we discuss the applicability of the assessment methodsfrom the characteristics of high-tech enterprises. Then we constructed astochastic model, which uses sales revenue, sales revenue growth rate andvariable costs as the random variables. In this way we create a simpledynamic financial statement, in which we solve the problem of the uncertaintyfaced by high-tech companies. We also use Monte Carlo simulation toincorporate abandon option. Finally we apply the model to a specific case. At the same time we pointed out the strengths and weaknesses of the model inthe measurement of the value of high-tech enterprise.