The Valuation Of Equity Of CL Technology Company

CL is a technology company like this. On the one hand, it pays much attention to itsfurther development which needs optimization management structure. one the other hand, itsstockholders and administrators will bring in the strategic investors as a crucial channel tostimulate company’s development. In order to bring in strategic investors, the first importantthing that should be considered is to evaluate the equity value of CL Company. This articlewill make a study of the evaluation problems that CL Company will face. Hope this studywill do a great help as a reference for the stockholders and managers when bring in strategicinvestors.The author looks up many related articles about value evaluation by domestic and abroadscholars, and summarizes the accordingly theories of company value evaluation. Base on this,firstly, the article separately make a further conclusion of the model of valuation methods byDCP discounting valuation modeling and by real options valuation modeling. Secondly, viaanalyzing the CL company management and financial situation, it evaluated its stability ofprofit which makes a foundation to predicting its cash flow. In the meantime, the author buildsthe evaluation structure of CL equity value according to the service characteristics andworking condition of value evaluation methods.Then based on the evaluation structure, the author slits the business of CL and evaluatethe coal mine equipment project value by DCF and real option which comprise the mainbusiness valuation. Thirdly, The article integrates the main business value and non-operationalassets into the whole valuation of CL company then deduct the financial debts value, lastlycomes out the equity value of CL company. Finally, by analyzing the sensitive factors ofequity value, this article figures out the fluctuation range when considering the changes ofassumptive parameters.Due to without any financial debts, this article evaluates the equity value of CL companyis the same with its whole value1,287,379,700, among which the railway equipment projectvalue is1,198,065,700, the coal mining project value is83,354,000, non-operation asset valueis6,031,500. According to the financing demand of shareholders and administrators, thearticle predicts CL Company will sell10%shares, and then the financing value is119,806,600.