An Empirical Research On The Choice Of Method To Appraise Software Enterprise

As a typical knowledge economy,unlike with other industrial economy industry,software industry has maintained rapid growth in recent years.The information construction of the Chinese government has provided a potential market for the software enterprises,and the valuation of the software enterprises will be concerned by the society gradually.The software industry is high growth,high risk,and high intelligence industry.The traditional valuation methods are not applicable fully.At present,the research on value assessment of China's software industry is still only based on foreign theory,and we have not our own evaluation theory.Based on the characteristics of software enterprises,this paper selects 29 listing Corporation.And use the income method,the option method and the market method respectively to evaluate the corporation,which in the growth period,the mature period,the decline period,from the perspective of life cycle.And then use SPSS19.0 statistical software to analyze the correlation between the three kinds of valuation methods and the average market value of the software enterprises.Finally,we can get the best evaluation method from different life cycle.Through empirical research,this paper draws the following conclusions: firstly,for the growth of software enterprises,the option method is more close to the actual market;secondly,for the maturity of software companies,the option method is also more accurate.;finally,for the software companies in recession,the cash flow tends to be negative,which does not apply to the market method,income method and option method.Then the cost method is more excellent.