Chip Design Enterprise Value Evaluation Based On EVA-BS Model

In recent years,China’s chip industry has developed rapidly,the industrial structure has been adjusted and optimized,and the government has been paying more and more attention to the development of the chip industry.In particular,a few years ago,ZTE,Huawei,two enterprises encountered the chip,operating system "cut-off" event,the chip and other semiconductor industry has become more and more concerned about people and the government.The "14th Five-Year Plan" lists the chip design industry as a key industry,highlighting the important strategic position of the chip design industry in China’s future development plans,highlighting the urgent need to accelerate the speed of China’s independent innovation and improve the supply capacity of key basic components.Therefore,the status of chip design enterprises in the capital market is also increasing,and the accuracy of their value assessment has become particularly important.This thesis first defines the concept of chip design enterprise,based on the characteristics of chip design enterprise,so as to divide the value composition of chip design enterprise,and considers that the overall value of chip design enterprise is composed of two parts: the value of existing assets and the value of potential investment projects.Then,the enterprise value assessment and the related theories of EVA and B-S are discussed.Secondly,according to the current situation of chip design industry development and chip design enterprise value assessment,it is analyzed that the use of traditional assessment methods may have limitations,and the use of a single assessment method for chip design enterprises has certain errors,for this reason,the B-S model is introduced,and a new exploration of EVA-BS combination model to assess chip design enterprises is proposed.Finally,the two-stage EVA method and the B-S model valuation are carried out to evaluate the existing value of Will Semiconductor Co.,Ltd.using the EVA model,and then the potential value of Will’s investment projects using the B-S model,and finally the overall value of Will is summed up.This thesis uses the stock value of Will at the valuation point to analyze the valuation results against the composite model,to verify the feasibility of the EVA-BS composite model and to improve the value assessment method system of chip design enterprises in China.The results of the study show that:(1)the difference rate between the valuation results of the composite model and the market value is only 3.19% at the valuation point in time,and this difference is within a reasonable interval.This thesis concludes that the composite model is a more comprehensive representation of the complete intrinsic value of a company than a single traditional method.(2)The B-S model can quantify the potential expected value of intangible assets and investment projects of chip design companies,which have a greater impact on enterprise value.Therefore,the EVA-BS composite model constructed in this thesis is applicable to the value assessment of Will,which better reflects the overall value of the chip design enterprise.