The Equity Pricing Model of State-owned in MA Based on Growth Option and Empirical Study

摘要

This article combines the growth option model with discounted cash flow to ascertain the real value of the state-owned enterprises, and then establishes the Pricing Model of State-owned Shares in Foreign M & A Based on growth option. The features and innovations of this article: firstly, makes use of the return on assets αs and discount rate of investment options αc to compute the profit opportunities of the target enterprise, this point makes up the shortcoming of B-S model which does not apply to the pricing of M & A. Secondly takes advantage of the growth option's equity character to reflect the certain growth value of state-owned enterprises. To make up the shortcoming of traditional pricing methods which neglects the issue of the value of intangible assets but only focus on the asset quality, profitability and other financial indicators. Thirdly, analyze the case of Shenyang Machine Tool to give some policy proposal about the equity pricing of State-owned in M & A.