Study Of Comparable Company Method About Lithium Battery Industry Based On Technology Innovation Index

The21st century is the era of knowledge-based economy，many researches haveshown that technology innovation can bring much more added value than other productionfactors, such as labor force, capital, etc and has become the main driver for enterprises,especially for hi-tech ones, to create more value. Substantial growth of company value isalways accompanied by the surge of stock value, thus the promising hi-tech enterprises areusually the ideal invest targets for investors, however, to reasonably estimate thoseenterprises is rather difficult for investors. The significance of technology innovation isundoubted, but traditional valuation methods always just focus on general financialindices while seldom or hardly pay attention to technology innovation which can promotethe development of enterprises. Therefore, traditional valuation methods can hardly givean accurate estimation of investment value. To deal with this problem, this article tooktechnology innovation into consideration and built a valuation model which is applicableto hi-tech enterprises.To appropriately measure technology innovation capability, the article built atechnology innovation index calculated by AHP. The article also improved the existingcomparable company method. Thus we can get approximate estimated stock value of thetarget company by comparing the technology innovation capability index ratio (Stockprice divided by company’s technology innovation index) between targets and comparablecompanies. To better illustrate the comparable company method based on technologyinnovation, this article took lithium industry, which is very popular recent years, as theresearch object and estimated listed companies of electrolytic industry and membraneindustry. The analysis showed that some company’s stock price have been overestimatedwhile some other have been underestimated, according to the result, investors can chooseinvest targets easily to gain positive return by selling the overestimated stock and buyingthe underestimated ones. At the same time, this article gave exact valuations ofcomparable companies and a few subordinate comparable companies, in this way toprovide an effective method to value new shares as well as the shares of unlisted company.