A Case Study Of HL Mining Company's Enterprise Value Evaluation Based On Industry Periodicity View

Throughout the tide of social change,from agricultural society to industrial society until today's information society,people's material needs,and use is to make a person dazzling,but the mineral resource utilization way and the depth of the biggest change.Mining enterprises since the founding of China's economic and social development and national economic development provides the basic support role,the development of mining industry development led to the emergence and prosperity of related industries,in the new era will take on the historical mission of power the great rejuvenation of the Chinese nation.Cyclical industries such as mining companies,are greatly influenced by the economic cycle,in the practical work often appears to underestimate the phenomenon of enterprise value,so the research how to effectively,scientific assessment of mining enterprises have the important practical significance.In most cases,because the income method adopted is closely related to the enterprise operation situation of cash flow to assess the important parameters,and mature evaluation theory,evaluation model and varied,so in the assessment of enterprise value assessment personnel use the income method,but the income method has limitations,such as vulnerable to economic swings,uncertainty is bigger,difficult to accurately predict the future economic benefits;It is difficult to determine the fluctuation period,the growth rate and the rate of return in the income law are not objective enough,and it is very easy to cause the inaccuracy of enterprise value;Income approach more static analysis problem,can be well reflected in the future cash flow forecast be evaluated during the period of the future may face the risk of enterprises,so the author think that is not to be a simple earnings method is used to evaluate such cyclical mining enterprise.By analyzing the case of mining enterprise value evaluation for HL conclusion is involved in the evaluation practice work cyclical companies should adopt the discount cash flow method and the evaluation methods of real options method.First this article system elaborated the economic cycle theory and cyclical industries,cyclical industry enterprise theory,unfold the case shows that the evaluation process,find out the deficiencies and problems in the process of the case evaluation.Based on the theoryof economic cycle and cyclical industries and the related theory of the enterprise,points out that the income method and real options method should be adopted in combination with the evaluation method,and then use method and real options method which reflect the periodic characteristics of enterprise evaluation method to evaluate the enterprise value.Final results than the assessment results is rising by about 25% in the case,what should notice is calculated in this paper during future stable cash flow discount value is approximately equal to the value assessment in the case,this suggests that simply use income approach periodic enterprise value assessment is underestimated.