The Case Study On Enterprise Value Assessment Of SR Company

With the development of economy, the attention of enterprise value assessment isincreasing. No matter whether its is the merger of enterprise, the transfer of shares,the equity investment in equities, the corporate restructuring and listing, or incentivemechanisms establishment, legal proceedings, liquidation of enterprises, and so on allinvolve business valuation. At the end of2013, SR company issued shares to aspecific object in a closed way, the price is set at16yuan per share. For investors,whether this investment could make profit depending on SR company hadoverestimated the price of non-public offering of shares or not. So, this article selectsan appropriate assessment method to assess SR company shareholders ’ equity valueto determine per share ’s value of SR company ’s stock. and ultimately provide areference for the investor’s investment decisions. Meanwhile, the assessment progresstowards SR company in this paper has some reference significances to othercompanies ’ enterprise value assessmentThis article mainly uses the Cost Method and the Proceeds Method to assess SRcompany’s enterprise value assessment. The Cost Method is mainly through theanalysis of SR company’s balance sheet, combining enterprise itself features, evaluateand plus totally alone on the value of SR company’s all assets and liabilities,eventually get the enterprise’s value; The Proceeds Way is mainly used DiscountedCash Way, through on national macroeconomic development situation, city gasindustry development situation and SR company’s development prospects make ananalysis, reasonable forecast SR company’s future proceeds of cash stream. While thispaper gives a reasonable improvement on the model of the Discounted Cash Flow, inassessing SR company’s enterprise’s values, apart from considering the value ofbusiness assets, also considering non-operational or profit-making assets (liabilities)value, makes the results be more complete, more persuasive. Finally, makediscounted cash flow for the each year of future, and evaluate the SR company’senterprise value.Compare and analyze the enterprise value on the results which areworked out by these two ways, finally choosing the Proceeds Method’s assessmentresult as the value of enterprise value assessment of SR company, and serve as a basis to estimate SR company’s share price,each12.4Yuan, indicating that there may be arisk of falling to SR company’s stock, investors need to be cautious.