Research On The Application Of Improved Functional Market Method In Enterprise Value Appraisal

Along with the rapid development of China’s economy,enterprises in various industries are focusing on improving the quality and scale of their earnings.Mergers and acquisitions are an important way for enterprises to participate in the capital market and further expand their business scope or consolidate their industry position.Due to the objective and impartial characteristics of the industry,asset appraisal agencies are able to make a reasonable assessment of the value of enterprises and play a role in the transaction process of enterprises.How to further improve the valuation method affects the healthy development of the valuation industry.In the enterprise value appraisal,the traditional market approach often underutilizes the dynamic information of historical data and lacks the objectivity of assessment results.this paper extends the traditional market approach model from a continuous,dynamic functional perspective to propose a functionalized market approach.The valuation method was applied to the equity value of Kweichow Moutai.This paper first summarizes the current state of research and research deficiencies in asset valuation theory,compiles research related to entropy weight method and functional data analysis,and the important theories involved in this paper are discussed in depth on this basis.Based on the entropy weight method,the dynamic weights of indicators are constructed to dynamically analyze the differences between companies.At the same time,the composite score of comparable companies is calculated,and comparable companies are selected based on the scoring results to calculate the adjustment coefficient.Based on functional data analysis,the discrete data are fitted to curves by means of base function fitting,and the functional time series Dynamic forecasting addresses the use of historical data and improves the objectivity of the assessment process.Among many industries,the liquor industry has stable profitability and is popular among consumers and investors,while Kweichow Moutai is particularly important.Based on this,this paper chooses Kweichow Moutai ’s equity value to evaluate.In terms of total assets,days of turnover,current ratio,gross profit margin,growth rate of net profit in 5 years,dividend yield and cost of equity,total seven indicators dynamically analyze the sources of differences among listed liquor companies and screen out suitable comparable companies,enhancing the assessment process objectivity.Focusing on the objective of dynamic evaluation of enterprise value,we take the path of "model construction-prediction-evaluation results-verification and differentiation analysis".to further improve the traditional market approach.Checking robustness through Monte Carlo simulation and comparing predicted results with actual results and evaluating the variance analysis of the results.The validity of the model improvement is further demonstrated.The study found that(1)the functional market approach addresses the lack of objectivity of the assessment and the use of data to improve the conclusions of the assessment Reliability.(2)Based on the entropy weighting model,we can comprehensively score liquor companies and select suitable companies,which increases the objectivity of the evaluation process.(3)Profitability and economies of scale of baijiu companies are important factors in the differences between companies.(4)The estimated equity value of Kweichow Moutai based on the functional market approach is between 1155.4 billion and 1454.4 billion,with a mean value of 1293.3 billion,the main cause of assessment bias is due to macro factors or external event shocks.(5)Arguing that the model is valid through data set-aside and Monte Carlo simulations.This thesis consists of 24 figures,19 tables,and 89 references.