Korean Journal of Organic Agriculture (한국유기농업학회지)

Korean Association of Organic Agriculture (한국유기농업학회)
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A Study on Valuation of Environmental-friendly and Organic Food Company

친환경 유기농 기업의 가치평가에 관한 연구

  • 여동수 (동국대학교 서울캠퍼스 식품산업관리학과 일반대학원) ;
  • 황재현 (동국대학교 서울캠퍼스 식품산업관리학과)
  • Received : 2012.11.14
  • Accepted : 2012.12.13
  • Published : 2012.12.31
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Abstract

This work is for reasonable valuation method of environmental-friendly and organic company. Reasonable valuation method is principal for the sound development, the reasonable investment and the growth of stock market. This study proposes valid valuation and method for environmental-friendly and organic company. The author selected 4 companies from certificate list of environmental-friendly and organic food and LOHAS (Lifestyles Of Health And Sustainability) food of Korean standards association. Applying financial audit report of 5 years, the author output 5 variables from each companies by using Growth Option model of Real Option model. And the author valuated companies by adding option value calculated with these variables and residual value discounted with cash flow discounted method. Company values from ROV model were 1.71 time higher than DCF model. This results show that the value of environmental-friendly and organic food company may own high option premium, that is the growth factor.

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References

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