The Research Of The SME IPO P/E Multifactor Model And Application In The Assessment Of Venture Capital

With the GEM introduced into the countdown, entrepreneurship and venture capital enterprises actively prepared in order to meet the financing platform. SME board as the GEM transition section, launched three years, the financing for small and medium-sized enterprises has opened up a new path. Most companies have venture capital background in listed companies on SME board. Venture Capital injection is not only the capital, will provide a range of value-added services. So venture capital is not only the injection of capital adequacy, more importantly, to bring the scientific and system management methods to enhance their overall quality and value-added enterprises. Since the enterprises realized a growth in value, then under the intrinsic value theory, a venture capital into the company in the IPO valuation should be high. Therefore, this paper on the impact of factors of the IPO valuation analysis, to identify quantifiable, and the greatest possible number of factors reflect the impact of the indicators, such as the effective financial targets and indicators of venture capital injection. Determine the impact of factors of indicators, through the analysis of factors affecting to IPO price-earnings ratio of listed companies to build multiple regression model. In order to make the model can be better applied to practice, to provide recommendations on the value of venture capital, by clustering and discriminant analysis on the machinery and equipment industry we can get the discriminant function. In assessing the value of venture capital or management, through the discriminant function of determining the types of enterprises, we can analysis it. If the enterprises reach in the highest category of IPO price-earnings ratio, VC should consider venture capital investment. If the other categories, by comparison between the category we can get the differences to highest category. Venture capital institutions for risk assessment of the value of enterprises, as these differences can consider whether to enter the target. For the risk enterprises of venture capital invested, in order to enable enterprises to the industry's highest IPO price-earnings ratio, based on the corresponding ratio adjusted, improving the company's IPO valuation.