Research On The Value Of Enterprise In China's GEM

Our country is facing economic restructuring, industrial restructuring,and encouraging self-innovation and enterprise to develop.During this period,it is great of significance to introduce the Growth Enterprise Market(GEM).However, the performance of the GEM is unsatisfactory since its introduction, the phenomenon of high price-earnings ratio, high turnover and high volatility means a relatively strong speculative atmosphere of GEM.therefore, people question the GEM:Can these enterprises in the GEM support the high price-earnings ratio of 100?Will our GEM become China's NASDAQ? Whether the GEM is worth to invent or not?A series of problems lead me to think about the business valuation of investment value of the GEM and the fate of the GEM, and it is significant in theory and practice.From a theoretical point of view, price-earnings ratio has been considered a theoretical basis to invent or not,and the current academic have made many research on reasonable price-earnings ratio of A-share market,but little on GEM. Thy have also made many research on application of business valuation methods including cost approach,market approach,and income approach,however, the venture have feature of high growth,high risk and the potential growth opportunities so that it is dfficult to use traditional assessment methods to evaluate the valve of venture.therefore,the theory of valuation is to be perfected. Finally, institutions and norms ofour GEM are still not perfect; need to learn from the successful experiences ofoverseas GEM and constantly improve system of our GEM.From the practice point of view,many investors just lament on the extraordinarily high price-earnings ratio; individual person are for short-term speculation based on "early adopters" and not clear whether the GEM is worth to invest. Wthether on the point of investors or on the point of the capital market regulator, we need to grasp rational price-earnings ratio of the GEM, and real investment value of venture. Therefore, the study not only guide many investors to invest in the GEM, but also have reference value for government to regulate development of the GEM..In practice,people always use income approach and market approach to valve the inventment valuation of besiness,sometimes use option approach. Generally speaking, people has not made a consensus on the valuation of venture investment. Similarly, the research on the valuation of venture investment has the same reference.to practice. Our GEM has been introduced for short time, whetne high price-earnings ratio is a temporary phenomen on speculation or the reflection on expectations of the high-growth market, we need to use rational thinking and technical inspection to answer the qustion. we need to study the valuation of investment of the GEM to avoid the short-lived fate of overseas GEM and construct chinese NASDAQ.This text is based on research of theory, compares valuation methods of entrepreneurial enterprises on the point of GEM does an summary to applicability of valuation methods in our GEM,and gives suggestions on the development of our GEM. Through an estimate about the reasonable price-earnings ratio on our GEM,this text conclutes that our GEM is overvalued and exsit a big bubble, then gives a reasonable price-earnings ratio of our GEM. Meanwhile,this text analysis traditional valuation methods and concludes methods that can be applied in our GEM; then combine the successful experience of overseas GEM with China's national conditions and gives rational proposals on devlopment of our GEM.The innovation of this text:conducte a reasonable range of investment value of our country GEM through the reserch on reasonable price-earnings ratio on our GEM; analysis the applicability of valuation methods to our GEM through comparing traditional valuation methods and combining international experience in business valuation methods; gives rational proposals on devlopment of our GEM By analyzing and comparing the data of the overseas GEM.However, this text still exsits deficiencies that need to study.First.exsit many asumptions in the procesession of demostrating a reasonable price-earnings ratio.and seleceting 3% as China's future GDP growth rate is short of support of too much data; Second,this text does not further elaborate on analysing valuation method and not improve the parameters or defect exsiting in these methods,but only make analysis and comparison of these methods,so that the application of methods exist limitations;finally, case studies only use option valuation to value inventment of venture,but other methods also exist applicability of valuation and analysis through example.