The Application Of Binomial Option Theory In The Value Evaluation Of Film Enterprises

With the further reform and continuous development of China's cultural system and the Internet economy,there is a new round of opportunities in China's cultural industries.The cultural industry is facing a new round of capital restructuring and integration of resources.It is not only brings opportunities to the development of cultural enterprises,but also puts forward the higher requirements in the field of asset valuation of intangible assets,especially in the field of intellectual property assessment.Film enterprise belongs to the cultural industries,who has a “asset-light” structural feature and greater uncertainty with a Non-standard value creation process,long production cycle and earnings lagged.The feasibility of assessment has been questioned when using the traditional evaluation methods to assess film enterprise,the innovation of valuation methods and models will be imminent.This paper demonstrated a real situation that is only use of traditional business valuation methods can not be scientific and rational assess enterprise value in nowadays,by analyzing the characteristics of the film business assets and operations.Besides,this paper explores the feasibility based on the combination of traditional approach model and real option theory,and finds that real options theory can explain uncertainty of the movie business value creation process very well,by analyzing creative process of the value of movie business based on real option theory.Through a comprehensive analysis of the cash flow of the film,this paper constructed a standardized assessment mode of film enterprise' value with a strong operational.Finally,we can obtain a better evaluation results about a film listed company,through the standardized valuation model.And further test and verity the suitability of the valuation model about the film business.This article aims to build a standardized valuation model and provide a reference for the assessment of film enterprises' value,by introducing the binomial tree pricing model to the specific assessment practices in the film and television business.Thus,making a certain innovation for the assessment of film and television enterprises,and promote the further deepening study of the value of cultural enterprises.