| In the year of 2014,the per capita GDP in China has exceeded USD7,500,reaching RMB 46,600.According to international experience,when the per capita GDP is more than $5,000,the share of cultural consumption to the total consumption would be increase.With the fast development of cultural industry,the mergers and acquisitions of film and television media companies become more widespread.After considering both advantages and disadvantages of current value appraisal methods in enterprise and the nature of those enterprises,we can see that the evaluation of companies is facing some difficulties.How to value and price the unlisted cultural media company is the main point of this thesis.In this thesis,we take the company P as an example and this study is based on the production and introduction and issue of television series and films.According to a detailed analysis of their own situations and the conditions of domestic and foreign markets it faced,the thesis chooses to use the income approach to assess the company’s valuation through the analysis of three assessment methods: cost approach,market approach and income approach.During the evaluation we forecast earnings of company P for the next 3 years reasonably.The study makes use of the DCF model as the main method to discount cash flows of each year in the future to estimate the enterprise’s valuation.And we obtain the result that the valuation of company P is about 1 billion.We recognize that the primary prerequisite for application of DCF model is the cash flow and discount rate can be more accurately predicted.Due to the performance cannot be accurately predicted,and determine the discount rate is inseparable from the assessors reasonable forecast of the future risk.It is affected by assessors’ objective consciousness.At the same time,company P sets up for a long time,it has rich resources of the social relationships,which are cannot be quantified.These factors may lead to some differences in the process of the valuation of enterprises.So in the latter part of this thesis,we modify the discount rate by using the correction parameter model.Through the sensitivity analysis,we determine the company’s reasonable valuation objectively.Finally the result of the valuation was recognized by our investors.In this thesis,company P is a film and television media enterprise,its business value is mainly reflected in the contribution of intangible assets.The thesis pays attention to the performance of the intangible assets in the enterprise income.This thesis shows that the application of income approach can be used to assess the enterprise’s value.Combined with a real case of business,we could show the detailed process of assessment unlisted companies’ valuation by using the income approach,and provide a little reference for the assessment of culture media company in the market.Finally,the thesis also presents the current valuation problems and difficulties faced by China’s media enterprises,then propose the corresponding solutions,and give some suggestions about how to assess the valuation of companies in the future. |
