Research On The Evaluation Method Of Franchise Value In BOT Mode

In recent years,with the rapid development of China and the continuous improvement of people's living standards,citizens' demands for public infrastructure have also gradually increased.In the past,China's infrastructure construction was dominated and operated by the government's monopoly.This caused the government to bear greater financial pressure.In order to ease the current situation,the Chinese government quoted the franchising mechanism,namely,the PPP(public-private partnership)model,and the BOT model was one of them.A typical financing model is "build-operate-transfer".Compared with many developed countries,the introduction of BOT model to China is relatively short,but it has developed rapidly in recent years.The BOT model has the characteristics of long investment period and high risk.This has led many investors to adopt a wait-and-see attitude.Therefore,how to accurately evaluate the value of franchise rights under the BOT model has become one of the most important issues in China's infrastructure construction.By collecting a large amount of literature and learning assessment knowledge,the author conducted a brief study on the valuation method of franchise rights under the BOT model and improved it First,this paper theoretically analyzes the BOT mode financing,the franchise value and the franchise right under the BOT model,and finally finds that the franchise right under the BOT model is an intangible asset,which has certain option characteristics;secondly,the author passes the option.Theoretical and traditional analysis of the three major assessment methods,we can find that most of the intangible assets are suitable for valuation by the income method,but the long franchise period under the BOT model,the determination of the discount coefficient and other correlation coefficients is very difficult,and the income method can not relying on the value brought by the high risk of franchise rights,appending its option characteristics under the traditional income present value method can make the valuation result more realistic and make the valuation result more accurate.Finally,through the combination of fuzzy mathematics theory,real options,and present value of proceeds,the author constructs a valuation model for franchise rights under the BOT model,and assists with case analysis.It is concluded that the model can more accurately manage franchise under BOT model.It has theoretical and practical significance.