The Study Of Enterprise Valuation Based On Binomial Option Pricing Model

With the rapid development of economic globalization and China’s new round of Market-oriented reform after the ending of the Third Plenary Session of the 18th Central Committee of the CPC, enterprise restructuring, asset restructuring and acquisition activity is becoming more and more prosperous, the goal of enterprise financial management is maximizing the enterprise value. Under this background, the meaning of value assessment is increasingly highlighted. An reasonable evaluation of enterprise value, can not only help investors to make the right investment decisions, but also can help enterprise managers to make enterprise strategy analysis.Enterprise evaluation method has formed a relatively complete system. The methods can be divided into four categories:cost method, income method, market method and option method, and the former three methods are collectively known as the traditional evaluation methods. Among them, the income method of discount cash flow method is now the most scientific theory and the most widely used method. But the traditional evaluation methods do not take the uncertainty of future cash flow into account, which affects the rationality of the evaluation results. The emergence of the real option method is to make up for this defect of traditional evaluation method.Based on the comparison and analysis on traditional evaluation methods, this paper first affirmed the important position of the discount cash flow method. But in order to solve the uncertainty in cash flow, this paper starts from the business income, using the Binomial option pricing model to improve the traditional discount cash flow model. Secondly, combined with the actual use to Tebian Electric Apparatus Stock Co., Ltd, verifying the effectiveness of the improved method. At the end of this paper, it takes the abandonment option in the process of the enterprise management into account. Through the calculation and application of the liquidation value, the preliminary assessment results are further adjusted, eventually determine the more reasonable enterprise value results. The study of this paper aims to perfect and develop the traditional evaluation methods, hoping to provide a new train of thought in the enterprise evaluation research.