Enterprise Value Assessment Based on Real Option Approach: The Case of SEMCORP

Abstract

As the core power source of new energy vehicles, the lithium battery industry has ushered in a high-speed development, and has become the most widely used battery technology system. Due to the industry's high technical barriers, imperfect system, high volatility risk and other characteristics of the lithium battery enterprise value the overall assessment of the difficulty of ordinary investors to make a more accurate judgment. As an important representative of the lithium new energy materials industry, SEMCORP is in a golden development period. Based on the research results of previous researchers on enterprise value assessment, this paper examines the value assessment of n SEMCORP. Specifically, this paper applies a two-stage growth model to calculate the present value and evaluates the potential value separately with the help of an option pricing model to obtain its overall value. After analyzing, conclude that SEMCORP 's shares are overvalued. This paper can provide decision-making references for the investment and financing of Chinese lithium new energy materials enterprises, as well as further enriching the application of enterprise value assessment methods.