The Research on SME's Equity Value with Stochastic Pricing Method
Changbing Yang, Mu Zhang
Available Online November 2016.
- https://doi.org/10.2991/rac-16.2016.96How to use a DOI?
- SME; equity value; stochastic process; Monte Carlo simulation
- 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
- 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 -