Research On UCloud Valuation Of Dual Class Equity Structure Companies Based On Real Option Method

In order to improve China's multi-level capital market system,the Science and Technology Board allows companies that use differentiated voting rights to list.However,most domestic researches on differentiated voting rights have focused on the maintenance and transfer of control rights,the protection of the interests of relevant stakeholders,and few studies on value valuation issues.Based on this,this article is a supplement to the domestic research on the dual ownership structure.This paper studies the valuation of differentiated voting companies through literature research and case research.UCloud is China's leading third-party cloud computing service platform company.The company used dual equity structure to list on the Science and Technology Board in January 2020,becoming the first company to use this equity structure to list in China.This article summarizes the company's characteristics by introducing and analyzing the situation of the cloud computing industry where UCloud is located,the company's basic situation and the dual shareholding structure.With reference to the experience of mature capital markets,the impact of this shareholding structure on company valuation is analyzed.And through analysis and comparison of the applicability of various valuation methods,choose the valuation method applicable to UCloud.The idea of the real option method is that the value of an enterprise includes not only the deterministic value generated by the physical assets owned by the enterprise,but also the uncertain value of future choice opportunities.The article determines the source of UCloud's value through analysis and review.One part comes from the deterministic value of the company's tangible and intangible assets;the other part comes from the uncertainty value brought by the company's special equity structure.Based on UCloud's businesscharacteristics,this article selects the EVA valuation method to estimate the certainty value of UCloud,and then uses the real option method to estimate the company's uncertainty.By adding the two values,the value of UCloud is finally determined.The calculation result shows that there is a certain difference between the value estimated by this method and the current market value of UCloud.Finally,some reasonable explanations are made for the difference.