A Study On The Valuation Of Media Companies

Assets Appraisal and development matures and the type of assessment relates to become more widely used. According to China Asset Evaluation Guidelines, appraisers evaluation purposes for different types of assets evaluation, substantive guidelines related to corporate value, machinery and equipment, real estate, intangible assets, assessment of jewelry, and other aspects of forest resources. In the practical operation, business valuation,intangible assets and real estate assessment are relatively high. Since the assets of the different characteristics of different enterprises, the assessment process for the market approach, cost approach, the income approach chosen three basic methods are also different with the amendments to improve. As the country encourages the development of cultural industries, cultural industries increasingly flourish today,.At the same time,mergers and acquisitions, listing and other ways to enhance the overall development of the ability become an indispensable way. In this case, how to accurately assess the value of media enterprises has become the new direction of business development assessment study. In this paper, with the premise development of enterprise valuation,it proposed studies on valuation of listed media companies.Study on the culture media enterprise value, based on the traditional enterprise value research, analyze the characteristics of cultural assets for media companies,and then select appropriate assessment methods. Analysis of the existing literature is still primarily qualitative analysis, subjectivity Valuation also exist,.For example, analytic hierarchy process is used to determine the value of the media and cultural enterprises, the expert scoring authoritative parties often been questioned.Therefore,designing more reasonable and effective ways to determine the value of such enterprises is an important issue. At present, the evaluating methods of companies mainly involve market approach, cost approach, the income approach. Market applications require more law, referring to an object and a reference object on the comparability of certain requirements. Using the cost method, with the respect of the profit enterprises, replacement cost value of the business can’t be got so easy and accurate, at the same time, according to the International Valuation Standards assets requirements, business valuation except in cases of newly established enterprises, the proceeds or cash flows can not be reasonably determined and similarly the case of enterprise comparative data is not available, you can use the cost method, that is, only in the case of market approach and income approach are not applied,then it can consider the cost method. Currently, about enterprise value, the more widely used method is the income approach, under the premise of the theory of income approach and the discounted free cash flow model, economic value added method and option pricing method to segment extends.This paper is divided into five parts, in which the second part is mainly about using Tobin’s Q as a measure of the value of media companies, combining SPSS software with financial indicators, factor analysis, and then summarizing the factors that influence the value of media companies. The third part is about the limitations of traditional methods in media companies already listed on the valuation process, due to the special nature of the media business value of asset allocation, the market similar or similar comparable companies are more difficult to find.Bsides, cost international law limited use in enterprise evaluation criteria, and therefore chose the income approach to assess the value of media companies. Income Approach involves the analysis of free cash flow discount model, which involves uncertainties related factors elaborated model, then proposing Monte Carlo simulation(MCS) to reduce the inability to accurately predict uncertainty and limited sample size estimation error caused by factors. The fourth part, mainly with the application in practice of the method of discounted free cash flow as well as the traditional correction after each use, by comparing the results to find reasons for the differences, the advantages obtained after the correction. The last part, based on the foregoing summary of the valuation issues in the media business, and improved some recommendations for the development of such enterprises to provide better help.