An Exploration Of The Methods Of Appraising The Value Of Enterprises

With the deepening of China's reforms and opening-up and the emergence of a market economic system in China,to adapt to the increasingly heated competition,the financial management expertise of enterprises are improving constantly,mergers and acquisitions between enterprises are experiencing an unprecedented growth,and investment awareness in society is also rising. All these fields require enterprises to conduct value assessment and analysis. The existing corporate value assessment methodology in China came into being during the early stage of China's reform and opening-up campaigns and has played a positive role in certain historical periods. However,with the steady improvement of the market economic system,especially with the increasing integration of China's economy in the global economy after China joined the WTO,the existing value assessment methodology has failed to cope with the economic changes in the new era and the needs of economic internationalization. The domestic value assessment methodology should be brought in line with international norms as soon as possible.This paper presents an analysis of the prevailing international methodologies for assessing integrated corporate value,expounds the application environment and strong points and weaknesses of these value assessment methodologies,and illustrates the problems encountered in actual domestic practice and their solutions. The paper consists of four chapters as follows:Chapter I provides an overview of corporate value assessment theories and methodologies as well as the current situation of value assessment in China and its existing problems.Chapter II presents an analysis of the theoretical model of the Discount Cash Flow (DCF) Method,and expounds the application of the DCF Method in actual practice and the major problems encountered and their solutions.Chapter III gives a brief introduction of EVA (Economic Value Added) as a popular financial concept and its functional applications,analyzes the EVA Assessment Model and its applications in actual practice,presents an analytic comparison of the relationship between the EVA and DCF,and explores the characteristics and limitations of the EVA model.Chapter IV analyzes the theoretical thinking patterns of the market comparison assessment methodology,its actual applications and main existing problems.