Analysis Of Unicorn Enterprise Value Based On Improved Real Option Models

Since the advent of the unicorn enterprise concept in 2013,its rise,development and industry distribution have quickly attracted worldwide attention.According to its classification criteria,a group of outstanding young companies,less than a decade old but valued at more than been valued at more than a billion dollars are classified as unicorns,derived from the noble,mysterious,rare and beautiful mascots whose name "unicorns" implies in the ancient mythology of western countries.In recent years,China's unicorn enterprises have sprung up like bamboo shoots,growing and expanding,infiltrating into every industry and every field.And because of its rapid development,the number of continuous large,and a number of excellent unicorns listed one after another,coupled with the opening of green channels for some unicorns IPO China in 2018,the valuation problem of unicorns is corresponding.Unicorn enterprise's own characteristics make it have the characteristics of short establishment time,fast growth speed,lack of historical data,large proportion of intangible assets,and its valuation problem is often different from other enterprises.How to evaluate the value of unicorn enterprise scientifically and effectively has become an urgent problem to be solved at present.Based on the domestic and foreign literature research,this paper concludes that the real term law is more suitable for unicorn enterprise valuation than the traditional valuation method.However,because the theoretical model of real term law assumes strict conditions(no tax and project running period,no dividend and other income,etc.),which is extremely inconsistent with the reality.Based on the characteristics of unicorn enterprise,this paper will improve it on the basis of its original model,add other two influence variables of income and development expenditure,and assume that the improved real option model is closer to the real value of the enterprise.In order to confirm this hypothesis,this paper starts with the introduction and development status of unicorn enterprises,selects the leading listed unicorn enterprises coltan pharmaceutical industry in the biomedical industry,discusses its company and development prospects in combination with the current epidemic situation,and then constructs a modified real option model according to the limitations of real option theory,uses Monte Carlo simulation to evaluate the coltan pharmaceutical industry,and tests the validity of the results.In order to ensure that the results of the verification are fair and objective,the price-earnings ratio method and the cost method are also used to value the pharmaceutical industry.Finally,based on the comparative analysis with the traditional method,it is concluded that the improved real option model is more suitable for unicorn enterprise valuation.Through the research of this paper,on the one hand,investors have a deeper understanding of the listing situation of unicorn enterprises and the emerging medical technology companies with great potential,and more importantly,through the application of the improved real option method in unicorn enterprise valuation,and the comparative analysis of the limitations of the traditional valuation method in unicorn enterprise valuation,it is concluded that the improved real option method is more reasonable and operable to consider in unicorn enterprise valuation.At last,the paper summarizes and puts forward some suggestions,which can be used to measure the value of unicorn enterprises more comprehensively.At the same time,it can be used to help investors understand the value of unicorn enterprises more accurately,to help enterprises make effective investment decisions and to help the healthy development of capital market.