Valuation Of Companies Listed On GEM

At first, this paper narrated the China's Growth Enterprise Market (GEM), considered the value of China's GEM is too high and the research of the China's GEM value is very important. Then, the paper introduced the nearly research about GEM and domestic business valuation theory. The paper introduced three basic method of enterprise valuation:income approach, replacement cost approach and market comparison.According to the characteristics of GEM, based on previous research, the paper analyzed the method of enterprise valuation on GEM. According to the GEM with high-risk and high-growth characteristics, the paper considered the PEG valuation method is more appropriate for evaluating the stocks in the GEM. Real Option, PS method and other methods is complementary PEG, that also can evaluate the stocks in the GEM.Then this paper analyzed the valuation of companies listed on GEM by PEG, Real Option, PS method. By large amount of data calculated, we analyzed the enterprise valuation on GEM and compared three valuation method.According to the analysis, the paper concluded the value of China's GEM is too high and PEG valuation method is more appropriate of enterprise valuation on the GEM. Finally, the article list the problems and deficiencies in the process of research and the next research objectives.