Study Of Business Valuation Second Board Listed

After a decade of preparation, China's Growth Enterprise Market finally opened, and the Chinese asset evaluation gradually developed as an independent industry, it has been ten years. After reviewing the history of second board from a proposal to the final creation, this paper first narrate the nearly research about Growth Enterprise Market and domestic business valuation theory, including the university degree papers and other related articles. Then introduced the Growth Enterprise Market of domestic and abroad (the United States, Germany, Singapore, Hong Kong, Taiwan, etc.) as well as the emergence and development process with the requirements and characteristics of listed companies. Combination of the development in theory and practice of asset evaluation industry in business valuation, the paper preliminary put forward the study of content and direction, that is, what role the asset appraisal should play in business Valuation that companies listed on second board, and how to achieve this function through quantitative and qualitative analysis of the Methods.Chapter II begin with a technology company--K Technology Co., Ltd which prepares to listed on the second board. Starting with a realistic assessment of the specific business as a case, described a common assessment process on the current listed on the second board before it's share reform, and introduced the basic situation of company K, including historical evolution, research and development, marketing, internal management, profit model, growth analysis, risk response and other aspects. Combined with company K assessment practices, it introduced assessment methods, process and some application assumptions of valuation method and theory. Then it has a brief introduction on the actual evaluation process for such enterprises. According to the similar assessment conclusions facts between Company K and selected 10 companies listed on second board of the first restructuring evaluation, compared with capital markets investors'second board high price of business valuation, discussed the appraisal model and the legal basis by comparing the pre-restructuring of these enterprises. The causes of difference between assessed value and market price are analyzed, such as appraisal time, approach, as well as the immaturity of capital markets. Based on the analysis, it put forward that should greatly strengthened asset valuation work in the enterprise share reform and not negate asset valuation because of the price difference between the valuation and IPO. And the paper proposed more effective evaluation system and method.Chapter III, taking K Company's various business functions for the modules, it initially set up an enterprise value evaluation index system, including industry conditions, the key technology, market development, management system, risk factors, financial situation of the six aspects. And each major Class divides further on details. According to the actual situation of various parts and in reference to expert opinion, the paper determines the weight and score by the level of importance. Industry conditions are separated into 6 aspects: industrial policies, trade barriers, internal competition, WTO, trade prospects, preferential policies; technology are subdivided into the source, proprietary level, advanced, stage of development, R & D investment, technology reserve, alternative , sustainability, technicians ratio and mobility, competition attention all 11 aspects; products and market segments for technical content, quality assurance, profitability, product life cycle, alternative, visibility, market capacity, supply and demand conditions, market share, marketing system total 10 items. Management systems are divided into ownership structure, corporate governance, management quality, development strategies, management systems and the effectiveness of incentive system total 6 items; risk factors are divided into 6:policy risks, expansion risks, project maturity, environmental pollution, staff loss, safety production; the financial situation is subdivided into ROE, profit growth, revenue growth, solvency, cash flow evaluation, the effectiveness of the accounting system, the distribution of profits total 7. According to the framework designed of the second board business valuation, after an effective evaluation system of indicators, the current commonly used in the absolute valuation and relative valuation methods were introduced one by one, including the discounted cash flow method, PE, PB, and other forecasting method, combined with various methods of formulas, parameters, and analyzes its advantages and disadvantages. Also highlighted the more applicable application to the second board Enterprises PEG model and to determine business growth of improve B-S model, as well as a variety of assessment models and parameters in assessing the practical application and development.In chapter IV, first combining the status of K company's operations, scoring the company's six functions of the table and various sub-indicators for the total score and the actual scores, has produced six score comparing chart and calculated the company's evaluation total points, compared to the views of the sponsors and work focus, initially to judge the validity of the indicator system. On this basis, applying the index system to 10 of the IPO companies second board listed, scoring of the 10 companies apart to verify the validity of indicator system. The difference between company's actual score and market pricing gives further verification and amendment of the indicator system. The paper subsequently gives some quantitative adjustments advice targeting evaluation system and the parameters that models predict used. According to the different scores to determine the parameters in the model made recommendations of adjustment. Under the premise of the basic theoretical framework enrich and effective, combined with second board listed requirements and appraisal practices, made general recommendations to the combination application between indicator system and model. Concluding section, the papers confirmed the effectiveness of the system by data comparison of research methods and indicators. This study proposed three conclusions: asset valuation should play a greater role in the information disclosure of companies second board listed,the effective construction of evaluation index system,use of models and indicators from a combination of both quantitative and qualitative. Finally, the article hope that the development of the theory and practice inside and outside the industry to provide better solution assessment of this common problem for the second board listed companies.