Proceedings of the 7th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention

The Research on SME's Equity Value with Stochastic Pricing Method

Authors
Changbing Yang, Mu Zhang
Corresponding Author
Changbing Yang
Available Online November 2016.
DOI
https://doi.org/10.2991/rac-16.2016.96How to use a DOI?
Keywords
SME; equity value; stochastic process; Monte Carlo simulation
Abstract
Abstract:in order to value the equity of SME effectively, we modify the traditional DCF model, namely, we use stochastic variable to describe the factors which have direct impact on cash-in and cash-out; then we use stochastic equation to portray the change of equity valuation; finally, we will simulate the the change of equity valuation within some periods by Monte Carlo simulation. In accordance with the result coming from the simulation ,we find that there exists a big probability that the company will bankrupt, however, their growth speed is extremely high and potential value is decent , which rightly fit the realistic situation. therefore, this modified method has ,to some extent, reference value in valuing the equity of SME
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Proceedings
7th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC-2016)
Part of series
Advances in Intelligent Systems Research
Publication Date
November 2016
ISBN
978-94-6252-242-8
ISSN
1951-6851
DOI
https://doi.org/10.2991/rac-16.2016.96How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Changbing Yang
AU  - Mu Zhang
PY  - 2016/11
DA  - 2016/11
TI  - The Research on SME's Equity Value with Stochastic Pricing Method
BT  - 7th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC-2016)
PB  - Atlantis Press
SP  - 594
EP  - 599
SN  - 1951-6851
UR  - https://doi.org/10.2991/rac-16.2016.96
DO  - https://doi.org/10.2991/rac-16.2016.96
ID  - Yang2016/11
ER  -