Corporate Valuation Study On Tebian Electric Apparatus Stock Co., Ltd.

With the development of economic globalization，mergers and acquisitions, restructuring, financing,equity transfer transactions between Chinese and foreign enterprises have become increasingly frequent.No matter what kind of transactions, the valuation of the target company is the basis of the pricingreasonable assessment and the key to a successful transaction.The year2011is the first year of Chinese ‘Twelfth Five-Year Plan’, which is also an importantstarting point for China to adjust the economic structure, changing the mode of economic development.While as base of national industry, the transition of regulation and development in the field of theequipment manufacturing industry is particularly important. Equipment manufacturing industry is astrategic industry, which provides the technical equipment of the strategic for every sector of the nationaleconomy. The industries associated with high capacity to absorb employment, capital-intensive technology,is a concentrated expression of an important guarantee for industrial upgrading，technological progressionand comprehensive national strength. The adjustment of industrial policy and credit policy has been a greatimpact to the equipment manufacturing industry. For Tebian Electric Apparatus Stock Co., Ltd.(Short ofTBEA)whose main source of income is high voltage transmission, its adjustment of the industry hasbrought a certain degree of chance and risk. The company has proposed measures related definitely in its“The Twelfth plan”, such as seeking the corporation with the industry capital and the financial capital.Through the study of valuating the worth of Tebian Electric Apparatus Stock Co., Ltd, we proposethe conclusion and suggestion as follows: First, it shows that the method of DCF and EVA is one ofcommonest and strongest valuating methods in our intelligent field. Second, according to the collectionof the finance data and analysis of TBEA financial statements for the past five years, it demonstrates theinvestment of TBEA. Besides, we can know that the company’s incent value was below the market value.Therefore, the company should take some actions to make a positive progress. For example, the companycan expand the ways to finance and make a reasonable investing proposal as to improve new growing pointin sales.