Analysis Of Influencing Factors On Based Business Valuation On Market Method

Along with the European debt crisis, our market witnesses an increasing numberof mergers and acquisitions and resource integration between different enterprises.According to the12th Five-Year Plan, the focus of reform again emphasizes onindustrial restructuring and industrialization with Chinese characteristics. Inparticular, the value of key industries become a reality needs. An in-depthunderstanding of companies’ stock value and its influencing factors on the one handcan help the management to achieve the goal of maximizing the company value, onthe other hand, contributes to rational economic decision-making of shareholders.Moreover, governmental agencies also will benefit from useful information.This thesis establishes a framework of valuation based on stock valuation theory.It makes empirical analysis on applications in automotive industry of Shanghai andShenzhen stock market by factor analysis and multiple regressions. The article isdivided into five chapters. The main elements of chapters are as follows. Firstly, thepaper introduces the research background and significance. Then it makes asummarization on domestic and international theory of business valuation; after thatsome basic theories and methods of enterprise valuation will be introduced whichfocus on marketing-method and its applications. In the key part, from the perspectiveof asset valuation, it analyses the influence of main indicators on automobileenterprises with multivariate regression Then, it combines factor analysis and multipleregression analysis to work out factors that influence enterprise value and valuationformula in evaluation model which tells main indicators of assets evaluation.Different to recent research, this thesis selects both assets evaluation andfinancial index. It also adopts factor analysis and multiple regressions. The resultsshow that the importance to the automobile industry is ranged like this: EBIT, salesrevenue, cash flow, net assets and profit. With financial index, growth capacity,operation and management of enterprises have a large effect on enterprise value.Therefore in the process of enterprise value assessment, we should choose comparedmultipliers and comparable companies reasonably. Meanwhile, the management ofautomotive industry should focus on those aspects.