Valuation Of High-tech Enterprises Based On Improved FCFF Model And B-S Model Evaluation Of ZTE Corporation As An Example

As China’s economic strength and scientific and technological strength continue to grow stronger,the country’s attention to high-tech enterprises is rising,and the development of high-tech enterprises is being vigorously promoted.The development of the enterprises has put forward higher requirements for financing and listing,management decisions,and fair transactions.Investors’ investment decisions,managers’ management decisions,mergers and acquisitions,restructuring and other transaction matters all need a reasonable high-tech enterprise value assessment as a prerequisite.This thesis firstly elaborates the concepts related to high-tech enterprises and analyzes the characteristics of such enterprises and their value composition,concluding that high-tech enterprises are characterized by a large proportion of intangible assets,high investment,high risk and high uncertainty,and their value structure is composed of two values: existing value,and potential value.Then,we analyzed the evaluation basis of three traditional valuation methods and the real option method and its applicability,and found that the traditional valuation method alone cannot take into account the potential value brought by the uncertainty of the future of such enterprises.so this thesis finally adopts the combined model of FCFF model and B-S model to evaluate the value of high-tech enterprises,in which the existing value of enterprises is evaluated by FCFF model.At the same time,the GM(1,1)model is introduced in the process of business income prediction,which avoids the influence of subjectivity to a certain extent,and the potential value of the enterprise is assessed by the B-S model,considering that the parameters involved in this model are all fixed values,which contradict the uncertainties of future market environment,national policies and managers’ business decisions,so the fuzzy mathematical theory is introduced to Therefore,fuzzy mathematical theory is introduced to improve the model,and the final evaluation results are changed from fixed values to interval values,which effectively improves the accuracy of the evaluation.Finally,this thesis takes ZTE Corporation as an example and uses the improved FCFF model to evaluate its value by combining the B-S model and the improved B-S model respectively,and compares the evaluation results of the improved FCFF model and the evaluation results of the two combined models with the market price respectively.The results of this thesis show that the enterprise value of high-tech enterprises is underestimated to a large extent by using traditional valuation methods,while the deviation from the market price is effectively reduced by using the combined model,and the introduction of fuzzy mathematical theory to the B-S model transforms the results into an interval value,and the most likely value is very close to the market price The most likely value is very close to the market price,which greatly increases its accuracy.