Valuation Of Chinese NEEQ Market Enterprises Under Real Option Perspective

With the need of the construction of the multi-level capital structure in our country,Chinese NEEQ Market which is an OTC market have developed a lot in recent years.The number of the listed companies is growing every day,also the momentum of development.Furthermore equity transfer and the status of financing deals also presents much more frequent and some enterprise which are developing well has great potential for rotating board.Therefore,how to value Chinese NEEQ Market enterprise rightly,recognize the value and real development potential of enterprise,grasp the investment opportunities and risks of estimate accurately,is very important for investors and regulators.It has the profound theory and practical significance.Firstly,analyze the status of development of Chinese NEEQ Market and the main features of the listed companies,then combine these key features,discuss the limitations of traditional methods on Chinese NEEQ Market companies valuation,as well as the applicability of real options method.Then again introduce general methods and models of real options to assess the enterprise value,and analyze their advantages and disadvantages,then use these three methods which are Black-Scholes model,binomial model,Monte Carlo simulation to value three new three-board companies.Use this comparation to verify that the Monte Carlo simulation is valid.At last,combine Monte Carlo simulation with Schwartz-Moon model to assess the enterprise value of the new board enterprise and compare it with its real value.By the results of the empirical analysis,we can know that as a numerical simulation method,Monte Carlo simulation has the same capacity on valuing Chinese NEEQ Market companies comraring with Black-Scholes model and binomial model.Furthermore,using the combination of Monte Carlo simulation and Schwartz-Moon model to obtain the theoretical value of the new board companies,can effectively approaches its market value.Thus it provides a strong proof to the valuation of Chinese NEEQ Market that the Monte Carlo simulation and Schwartz-Moon model has great applicability and operability for Chinese NEEQ Market enterprise valuation,which provides a good viewing angle and direction in the future.