A Research Of High-tech Enterprises Value Appraisal Method Selection Based OnLife Cycle Theory

With the progress of knowledge and science technology, high-tech enterprises develop rapidly, the quantity of high-tech enterprises is increasing with a high growth speed, the role that high-tech enterprises play in the financing, listing, merger and recombination is more and more important. It has a significant meaning for investors to make investment decisions and managers to manage enterprise by assessing high-tech enterprises value scientifically and reasonably. Since high-tech enterprises are far different from traditional enterprises, therefore, it’s not proper to use the traditional value appraisal methods to assess the value of high-tech enterprises. So, what methods should be used to assess the value of high-tech enterprises?High-tech enterprises have the common features like traditional enterprises which the life cycle theory describes, they also have unique features. Based on life cycle theory, this paper first introduces the partition and reason of high-tech enterprises life cycle stages, comparing the life cycle curve of high-tech enterprises and traditional enterprises, and then pointing out the features at each stage of high-tech enterprises life cycle, on the basis, analyzing the value mainly including value driver and value composition at each stage of high-tech enterprises life cycle. Then, this paper introduces four traditional value appraisal methods, pointing out the limitation of these methods applied to assess the value of high-tech enterprises at the same time. Finally, this paper does some research in value appraisal method selection of different life cycle phases of high-tech enterprises, making a conclusion with a chart, doing a case analysis by evaluating the value of WanTong Technology.The study of this paper suggests that we can divide high-tech enterprises life cycle into six stages, we can use option pricing method to asset the value of high-tech enterprises which situates in seed stage or start-up stage, with regard to growth stage, mature stage and metamorphosis stage, we can use discount cash flow method combined with option pricing method to asset the value of high-tech enterprises, for declining stage, we can adopt assets settlement method to evaluate the value of high-tech enterprises.