Study On The Application Of Income Approach To Assess The Enterprise Valuation

With the increasing development of the market economy and prosperity of the equity market, the enterprise market operation as a special commodity, its market value is more and more concern corporate stakeholders.In order to analyze and measure the fair market business or enterprise branch value, business valuation consequent and gradually become a special assessment.The income approach as an important method to assess the current enterprise value, it is very scientific, irreplaceable advantages, increasingly becoming the mainstream method of business valuation.However, use of the income approach need to have a market basis and prerequisite for making it many problems in our assessment of the actual application process, to some extent hindered the development of enterprise value assessment.Therefore, the paper analyzed through specific valuation issues that exist in corporate income approach, combined with practical case studies to assess the acquisition, design come to improve corporate income approach valuation reference of recommendations designed to promote positive assessment of business value across the enterprise, and rapid development.Throughout this thesis as a means of empirical research, using a combination of theory and practice, qualitative analysis and quantitative analysis, normative and empirical analysis combined with other research methods, a brief analysis of the income approach in assessing the value of three basic business model-DCF the base model, EVA model and RIM model, the study drew our current enterprise value using the income approach to assess the parameters of technology selection and operation of application problem. For example:define enterprise economic benefits are not standardized, enterprise economic benefit is not accurate enough to predict the amount of the discount rate to determine the caliber is inconsistent with international norms, the economic benefits of years of choice unscientific, evaluators professionalism uneven, non-systematic assessment agencies greater risk estimation and valuation process and the lack of an independent environment. In view of this, the paper starting from the specific issues, choose from the four major aspects of the technical parameters of the income approach to enhance the quality of evaluators to assess the agency to resolve the non-systematic risk estimation and cultivate a good environment to design a series of perfect enterprise value assessment Revenue Measures Act; meanwhile, also considered the special economic times and the normal operation of the enterprise value of the non-assessment questions, hoping to assess the income approach to promote the development of enterprises and the whole value of the asset appraisal industry proposed targeted suggestions.