The Case Study On The Market Way Of Business Valuation Based On A Company

For the assessment of enterprise value, the developed countries in Europe and Americamarket approach is the most common, followed by the income approach, the cost approachis not commonly used, but in the practice of assessing the value of the enterprise, thesituation is just the opposite, the application of the assessment methodology is the most costmethod, followed by the income approach, market approach and assessors are rarely applied.With the rapid development of China’s capital market and improvement, as well as continueto strengthen international cooperation, China’s evaluation system is bound with theinternational evaluation system, which will make the market approach is widely used inbusiness valuation.In this paper, a specific assessment examples that demonstrate the actual operation ofthe enterprise market valuation method.The market approach is the business valuationpractice, the operation is relatively simple, less restrictive conditions, the assessed value ofits relatively easy to get an evaluation method is acceptable to all stakeholders in the processof applying the method to assess the market value of the enterprise, and how to choose therelative businesses are assessed higher than comparable companies and the appropriate valueratio and the ratio of the value of the core steps comprehension Markets Act applications.This paper analyzes the companies being evaluated profitability, asset quality and operatingconditions, and to be evaluated to determine the comparability of indicators to measurebetween businesses and on the basis of comparable companies, and finally to strike acomposite score by the weighted average method to determine comparable companies, thisapproach makes the process of selecting comparable companies more clear and intuitive,easy to understand and accept. In terms of value ratio, this paper analyzes threecommon-value ratios that earnings, lost sales ratio and book value for the assessment of thesuitability of this article instance, the analysis found that three-value ratios with respect tothe assessment of enterprises, there is a some defects, so this select NOIAT, EBIT, EBITDAto value ratio for the three examples in this article to assess the business value assessment ofthe value of the ratio of profit caliber of these three can be assessed from corporate income and expenses as well as depreciation and amortization costs other aspects to be evaluatedconsidering the value of the enterprise. In the aspect ratio correction value, the paperbusiness and other aspects of risk and growth-value ratio correction.This paper describes the application of the market approach to assess enterprise value inassessing practice maneuverability, laid the foundation for enterprise wide application in thenear future to assess the market value method has certain practical significance.