A Study of Stock Equity Value Pricing Based on the Option Theory - A Case Study of Xuzhou Engineering and Technology Corporation

Based on an analysis of three traditional approaches to value appraisal and their limitations, the paper puts forward a theory that takes the enterprise stock equity as a combination of rights and obligations and which uses the option pricing model to price the enterprise´s stock equity value based on the decomposition of each of the enterprise´s financial basic element into any of the factors of option pricing model. Then this paper takes Xuzhou Engineering and Technology Corporation as a case and makes a positivistic analysis of the theory mentioned above, and points out both the applicability and the limitation of option in the process of stock equity pricing. It aims to resolve a long-unsettled difficult problem that the implicit value cannot be appraised rationally by traditional approaches, and to provide a new idea for the enterprise in value drive management