Research On Value Assessment Of Software And IT Enterprises On Schwartz-Moon Model

In the context of economic globalization and the information technology revolution,our country continues to deepen reforms,and the economy is developing towards high-quality goals generally.The Software and IT Service Industry continues to benefit from the adjustment process of the digital economy to the industrial structure.Meanwhile,benefiting from national policy support,the scale of the industry is continuously expanding,and the development is entering a steady and positive development stage generally.The spacious development prospects of this industry continue drawing investors' attention in the market,which also makes the demand for enterprise valuation in this industry continue increasing.Regarding the theoretical research and practical work of enterprise valuation,scholars and practitioners always use traditional methods such as income method to carry out.,which is reasonable in the application of general enterprise valuation.However,due to Software and IT Service enterprises have their own characteristics in terms of technology and mode,the conclusions drawn in the actual valuation of the three commonly used corporate valuation methods are often quite different from reality.Using the theories and ideas of real options can take great advantages in the valuation of the Software and IT Service enterprises' value and draw scientific conclusion.The characteristics of Software and IT Service enterprises lead to the evaluation difficulties mainly focus on the handling of uncertainty.Therefore,this paper uses the Schwartz-Moon model under the real option theory to conduct a valuation study on Software and IT Service enterprises,providing market operations and investors fair value reference opinions.First,summarize the research of valuation of Software and IT Service enterprise at home and abroad,indicating the possible limitations of traditional methods in the enterprise valuations' theory and practice when researching the development of the industry and the enterprise valuation status.Then deeply explore industry characteristics to find scientific and reasonable valuation methods,that is,the Schwartz-Moon model.Besides,constructs and optimizes the Schwartz-Moon model for leaning close to model's application scenarios by drawing the Vasicek model into the paper to adjust the risk-free interest rate,and the Monte Carlo simulation method is used to find the solution of the valuation model.Finally,select a typical company in the industry,Longshine Technology,and apply the Schwartz-Moon model to its' valuation of overall corporate value.Then doing supplementary test using the traditional income method FCFF model,which further demonstrates that the model have scientific and reasonable adaptability in the valuation of Software and IT Service enterprises.Through research and analysis,as the typical high-tech enterprises,Software and IT Service enterprises are with more uncertainties,and the valuation results using real options ideas are more scientific and reliable.The Schwartz-Moon model can better adapt to this type of enterprise valuation in comparison with traditional valuation methods,but there are still some limitations in individual parameter settings and application scenarios.