The Value Study Of Value Multiplier Based On Industry Heterogeneity

With the economic restructuring and industrial upgrading of industry consolidation progresses, mergers and acquisitions become the important means of integrate resources and adjusting business structure and foreign investment in China. In the merger, the price of the target company determines the success or failure of mergers and acquisitions, as well as post-merger corporate performance merits. In today’s market situation, the market is the best way to identify and test valuation, the market approach is the most direct and close to reality, most likely to be understood and accepted valuation methods. Theoretically, it is the most urgent problems to be studied. Chinese capital market gradually improved and reached a certain scale. Almost in every industry, there are several reference enterprises in certain degree of similarity. Individual sectors with less listed companies, you can evaluate the results by the market approach as the authentication method. All listed companies must comply with the principles of mandatory disclosure system of listed company and the audit review system requirements. Therefore, external conditions of the market approach are ripe and it is the high time to carry out market approach.The appropriate multiplier is the key to apply the market approach. In recent years, our research focused on the applicability of the market approach, particularly focused on case analysis and model building. Although in our real sector, various value multiplier correlations has been reached and understood. But how to choose different value multiplier for different industries and different types of companies are not in-depth study and elaboration.Theoretical part starts from heterogeneity analysis of industry, analyzing different sectors in the economic structure, economic cycles, element intensive degree, capital structure. Meanwhile, classify various types of multiplier value of the most mature market. Study properties of the enterprise, the applicable conditions, affecting factors to explain the characteristics of value multiplier and cited the most commonly used value multiplier in mature market. The purpose is to explain the heterogeneity of the industry will lead to the value multiplier asymmetry.In order to explore the applicability of different values multiplier in different industry and find the two-way matching relationship between different industries and value multiplier. In empirical part, we select mining, construction, transportation, and information technology industry as a research object in according to element intensive. First, considering multicollinearity, this paper uses principal component analysis and factor analysis method to determine the weight of each multiplier value. Second, according to the weight of greater value multiplier, choose the corresponding parameter multiplier to apply partial least squares regression analysis and obtained regression equation of enterprise value. Third, according to empirical results for different types of industries, determine the value of the multiplier selection criteria, selection of priority and the industry multiplier further.This paper is mainly to solve how to choose the value multiplier, how to choose different type multiplier for different industries and other issues. Hope to provide empirical support for the development of market approach and study sample for subsequent researchers.