Hunan Dairy Biotechnology Ag Valuation

It is not only the undercurrent of surging capital markets behind the economic prosperity, but also the climax of assessment on the enterprise's value in the aspect of financial management. Enterprise Value Assessment is the process not only to explore enterprise's value, but also create enterprise's value. And it is an effective way to maximize the enterprise's value. The article maintained that the most appropriate way that can indicate the value of enterprises is the present value of cash flows in the future, is the balance between the earnings and risks of enterprise.The article focused on the relative value and discounted cash flow method to assess the value of these two commonly used methods, and applied them to valuation assessment practice in Hunan Milk biotechnology Company. Empirical research and the application of this model are the core principles, this article always attempted to highlight the description of operation process of value assessment on the target corporation, whenever assess the value, or calculate a specific assessment and test the results.Gathering information, analyzing information, the use of information are the keys to assess the value of the target company, this article focused on the processing of information on the target company when did the empirical study. Some analysis and adjustment techniques had been used, which fully reflected the assessing people understood and explored the inside and outside factors of the enterprise's financial statements, the overt and covert factors of value driving.Financial budget preparation should be based not only on historical data, but also on the development of company. In this article a more innovative financial budget format which clearly demonstrate expected process of target company's future cash flow has been used.When determining influencing factors in the capital cost, combined with the current capital market data, use special methods to change its financial results, to avoid arbitrariness of risk assessment in the evaluation of value. Thus the entire value evaluation process and result are founded and have strong objectivity, get the aim of scientific research, at the same time enrich the relative theories, improve the further study of theory of value assessment.