Value Evaluation Of Semiconductor Enterprises In Growth Period Based On EVA And Real Option Method

In the era of knowledge economy,science and technology companies are committed to updating old products and developing new ones.Innovation is an important link,which promotes a country’s economic growth.Industrial restructuring can also improve a country’s core competitiveness.Technology-based enterprises are different from traditional manufacturing industries in terms of characteristics,demand for value assessment and value composition.Especially in the case of growing technology companies,intrinsic value cannot be adequately assessed using a single traditional valuation method due to the high frequency of transactions such as financing,stock acquisition,mergers and restructurings.Therefore,the composite model evaluation is constructed to evaluate the growing technology companies.By combining the EVA technique with the real option model,the life cycle is employed as the foundation to analyze the Huahai Qingke enterprise’s state,and the worth of the enterprise is appraised,while the feasibility and practicality of the evaluation model are deliberated.Enhancing the current enterprise value assessment system is the result.By examining the theories and literature on this subject,it is evident that the assessment techniques applicable to businesses vary in different stages of growth,thus necessitating the delineation of the company’s life cycle.By qualitative and quantitative analysis,this paper delineates the development stage of an enterprise,selecting four financial indicators-operating income growth rate,cash flow from operating activities-as its selection.The definition is founded on the cash flow from financing and investment activities.Subsequently,the literature elucidates the characteristics,value composition,and tribulations encountered in the assessment of science and technology enterprises,as per definition.The conclusion is that a single evaluation technique to appraise high-tech businesses in their expansion phase has considerable restrictions.The real option model theory can be employed to appraise these businesses,taking into account the worth of potential profits,thereby compensating for the inadequacies of customary assessment techniques.By combining EVA and B-S models,this paper presents the notion of real options and appraises the earnings worth of current assets and potential future option possibilities.Finally,taking Huahai Qingke in its growth stage as an example,the technical background,financing situation,industry characteristics,competition situation and future industrial layout of the enterprise are analyzed.The overall price of the company is split and evaluated by EVA method and B-S model of the two-stage model.The composite model’s evaluation results demonstrate a slight divergence from the market value,within a sensible range.Hence,this paper proposes that a two-stage EVA approach combined with real option can drastically circumvent the flaws of single evaluation technique and render the evaluation outcomes more sensible,thus lessening the disparity in information.Venture capital can gain from the beneficial guidance that this can give,as well as aiding in the sound growth of burgeoning technology businesses.