Research On Approaches Of Enterprise Valuation

Determining the value of enterprise precisely is the requirement of market economy. There are not only difference but also relationship between the valuation of an enterprise and the valuation of single asset. DCF, ratio pricing and option pricing are the main approaches in the valuation of enterprise, among which DCF is the ripest one no matter in theory or in practices. Ratio pricing is a method based on DCF and has many variant forms. Option pricing is an approach different from DCF, but it also has some relationship with DCF. Each one of these three approaches has its?applying field and limitation. To set up a sound and useful system of enterprise valuation, we have a lot of work to be done.