| With the increase of M&A, equity trading and assets transferring in China, it’s important to make reasonable valuation of equity of corporation. As the independent third party who can give professional advice to traders, valuation firms are supposed to value corporation equity reliably and formerly. It not only can be objective reference to information users, but also can mean a lot to stabilization of value in capital market.Generally, income approach is widely use in equity valuation both in practical and theoretical field, and the measurement of discount rate is always a difficult and key point in the process of using income approach. On one hand, the researches of the measurement of discount rate mainly focus on the measurement models, and are rarely about the specific calculation of parameters in measurement model. On the other hand, the capital market in our country are still in the process of development and regulation, which make the measurement of discount rate in China special compared to mature market in western countries. All in all, the researches in this field are too theoretical and are lack of practicability.Base on the background and causes above, this article researches the parameter calculation method and indicator selecting principle in CAPM model in mature market deep and detailed and concludes the applicability as well as good and bad of every method.Meanwhile, through the researches on models, parameter calculation method and the selection of indicators, this article makes a deep and specific research on the current situation in Chinese capital market while measuring the discount rate. Through the two approaches, this article finds out the problems and irregular operation in valuation practice,and put forward measures and suggestions for improvement in order to make contributions to the explore and development of the suitable discount rate measurement in our capital market. |
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