Application Of Binomial Model In High-tech Enterprises In The Start-up Period

At present, with the rapid development of economy and the support of national policy, the high-tech enterprises are growing rapidly. As a new type of enterprise, high and new technology enterprises play a very important role in the economic growth of the country. High-tech enterprise is different from the general traditional enterprise, its huge capital problem and technical problem is the main factor that restricts its development. High-tech enterprises have a lot of uncertainty. When the risk is relatively high, the income will be relatively high, and it also has a great attraction to investors. In the face of the shortage of funds, the high-tech enterprises will be to speed up the pace of development of enterprises, through the securities market financing. This paper studied the current situation of domestic, international business enterprises and high-tech enterprises value assessment theory and practice. But there are still many deficiencies in the value of high-tech enterprises. We analyzed the high-tech enterprises from the four aspects, such as, high-tech enterprise characteristic, enterprise value and evaluation method.First, China’s high-tech enterprises the general experience of multiple stages, but more the overall value of domestic high-tech enterprises were evaluated the. High-tech enterprises in each period to assess the value of information is less. Secondly, high-tech enterprises in the start-up period have uncertain factors, and the traditional method is difficult to evaluated the enterprise objective value. Addition, the data is difficult to obtain. These increase the difficulty of enterprise value assessment. In order to get more accurate start-up high-tech enterprise value, we have to take some measures to solve the problem. In this paper, by using the binomial model of start-up high-tech enterprise value assessment. Mainly from the following several parts to carry on the discussion.The first part of this paper study purpose and significance. The author analyzed complicatedly the high-tech start-up enterprise value evaluation at home an abroad. Then we describes the main contents of this paper, the innovation and shortcomings of this paper.In the second part, firstly, the different periods of high and new technology enterprises are clearly defined, and the characteristics of the enterprises in the start-up stage are distinguished. Secondly, this paper analyzes the characteristics of the newly established high and technology enterprises. At the same time, it also analyzes the risk factors of the investment decision by the technology risk, market risk, organizational structure, financial situation and so on. Finally, we analyzed the limitations of the traditional value evaluation methods, and the concept of thebinomial option pricing model.The third part analyzes the basic principle and calculation process of binomial model. In accordance with the principle of the binomial model simulation and copy the development trend of start-up high-tech enterprises, combined with the tree diagram with the push down method in the calculation of the value of enterprises. In addition to focus on the analysis of investment costs and technology changes in the two major factors.The fourth part assess the value of H company by using the binomial model. First of all, we have to look for the similar companies in the same industry in order to reference. Through analyzing the characteristics of the similar companies, we can know the specific time of enterprise development period, and can reach the scale. Secondly, based on changing in the same industry valuation, we can determine changes in the probability of H company’s enterprise value. Thirdly, according to the development of H company and the investment background, we can estimate subjectively risk factors. At the end of the development phase, the option value of the enterprise is obtained by reverse operation.The fifth part summarized the research conclusion, and put forward that we have learned knowledge is limited. So there are still many shortcomings in the study of the binomial model, and hope to get study more deeply.