The Evaluation Of The Equity Value In The Capital Increase And Expansion Of The CW Wholesale Company

The CW company is a chemical raw materials wholesale enterprise,the existing investment approach,in the form of cash to invest in the CW company,make its scale of production,to realize the increase of sales increase in the number and variety of double effect,accordingly,the CW company give corresponding investment company shares.So,in the process of capital increase and share expansion,how much is the amount of the capital increase of 16.1 million for the CW? Therefore,it is necessary to evaluate the equity value of the CW company.First of all,this paper analyzes the wholesale industry and business characteristics of the CW company,comparing several common valuation method,in view of the wholesale industry trade,business circle is bigger,the characteristics of the services is relatively small,on the premise of increase endowment spread,combined with the CW company as low risk change slow growing phase chemical raw materials industry,is part of the year there will be a cash income is less than the cash situation,considering the specific conditions of our country capital market is not fully effective,and consider the enterprise future earnings ability,therefore,the CW company valuation is suitable for using residual income model.Secondly,analyze the changes of the CW company and the internal and external factors of the company,and comprehensively determine the financial index value after the capital increase and expansion.Then determine the application parameters needed to run the residual income model,and to find out in each of the data needed to run the residual income: rapid growth n,sustainable growth rate g,after-tax operating yield,net asset turnover and the size of the CW company cost of capital,assess the CW company in each of the residual income,use run residual income model to the CW company on December 31,2017,this point to evaluate the value of the company,the value of the company is 26264.66 ten thousand yuan.Finally,calculate the CW wholesale company equity value is RMB 26264.66 ten thousand,compared with p/e valuation of the model results,found that the p/e ratio model estimate price is 4.5%lower than the operation and the residual income model value.Through the single factor sensitivity analysis,it is found that the equity value of CW company is sensitive to its after-tax operating rate,net operating assets turnover and capital cost.Through multi-factor sensitivity analysis,the stock value of the CW company is between 82.26315 million and54,041.12 million as the parameters change.The results of this study can be used as a reference for both the CW and the investors.