| With the recent requirements of economic restructuring and social development, the structure and status of production factors has rapidly changed. Since every leap of global economy is based on the technological breakthroughs, technology which is a critical factor of production has been continuously improved.As a key carrier of technology, intangible assets nowadays has received more and more attention from various countries and companies, leading technical development and reserves to become one of the normal operating activities of enterprises. In general, purchasing intangible assets is an important way for companies to quickly get technical skills, strengthen competitiveness and enhance their value-added products. In addition, as a part of the overall capital and the starting point for various corporate mergers and acquisitions, intangible assets is the core of a high-tech company and plays an irreplaceable role in the impact of investors’ decision-making process. Thus, the evaluation of intangible assets has become the most important business service in addition to the overall assessment.Due to the characteristics of technology and virtuality of intangible assets, the difficulty in the evaluation process is very large, which forms a higher and more specialized requirement for institutions and appraisers. Based on the fact that intangible assets corresponds to the future earnings, income method thus becomes the main way of evaluating intangible assets. As one of the three elements of the income approach, the discount rate method has a critical effect on the assessment outcome. Although the accuracy and reliability of the assessed value largely depends on that of the discount rate, the process of determining the discount rate is still the most complicated and difficult.This article is combined with practical cases, starting from the applicability analysis by using the most widely used method which is the capital asset pricing model and further analyzing the advantages and difficulties in the weighted cost of capital model, the cost of equity capital pricing. After adjusting the weighted capital cost model and regarding the deemed cost of equity capital as the industry average ROE, it will correct the cost of equity of assessed company by using four aspects which are the scale effect, financial risk, equity liquidity and corporate governance. At last, it’s necessary to apply the modified weighted cost of capital model and the capital asset pricing model into the practical case to compare and further analysis. |
