Research On The Application Of Real Option Method In The Science And Technology Innovation Board Enterprises Value

In modern times,China has insisted on implementing a strategy of scientific and technological innovation,and the innovation development concept has also been taken into account.In the interests of promoting the capital market’s ability to serve technological level and innovation capability,and to facilitate the advancement of new industries,China has established the Science and Technology Innovation Board.This establishment provides an important way for companies to raise funds in the capital market.At the meantime,the specificity of the listing conditions on the Science and Technology Innovation Board also creates risk and investment uncertainty for investors.As a result,firms listed on the Science and Technology Innovation Board are faced with the problem of valuation.This article addresses the drawbacks of the existing enterprise valuation methods and introduces the real options theory to value the Science and Technology Innovation Board enterprises.It combines the conventional approach to valuation and the real option to build a valuation model,with a view to suggesting a new way of thinking for the valuation of companies on the Science and Technology Innovation Board.At this point of time,most of the relevant studies are focused on the valuation level of the Science and Technology Innovation Board companies and the selection of valuation methods for enterprises,there is no study of the value components of the Science and Technology Innovation Board companies as a group.This essay firstly conducts a theoretical analysis of the value assessment documents of the Science and Technology Innovation Board enterprises,and extracts the characteristics and value influencing elements of enterprises.In the next section,the comparative analysis method was used to determine the adaptability of the valuation method for the Science and Technology Innovation Board companies,with the real options method as the main method to establish a rational valuation value model.The article is finally applied to a specific practical situation,with Hanchuan Intelligence as a case study for evaluation.The results are analyzed against its market value to check the suitability of the model.The study suggests that there is a real option value for the Science and Technology Innovation Board companies,if traditional valuation methods are used simply,the potential value of the company will be ignored,which results in an under-valuation of the company as a whole.Invoking the real options approach can compensate for the shortcomings of the income approach,and using a combination a real options approach and an income approach can more reasonably reflect the full value with respect to the Science and Technology Innovation Board companies,it also provides a point of reference for the subsequent valuation of companies to be listed on the Science and Technology Innovation Board.