Research On The Application Of CAPM Expansion Model In Estimating Discount Rate Of Enterprise Valuation

Due to the development of capital market and the change in investor expectations,CAPM has been increasingly questioned.The discount rate,as one of the most important parameters in the process of enterprise valuation,directly affects the valuation result.Therefore,this paper focuses on the advantages and disadvantages of different extended models and the differences in their use,trying to provide a more scientific discount rate when estimating the enterprise valuation.This paper consists of six parts.The first part is introduction,which about the background and significance of this topic selection,literature review,research methods and the possible innovations.The second part,the third part and the fourth part mainly study the three extended models,I-CAPM,C-CAPM and M-CAPM,from the aspects of theory elaboration,applicability and case application.The fifth part is based on the above three parts,comparing from the theoretical level and the application level of each expansion model.The sixth part is conclusion.It mainly summarizes the comparative analysis results of this paper,and explains the limitations of this study,as well as expectations on the study of discount rate.Through the collation of relevant documents and the analysis of this study,it founds as folowing.I-CAPM is a multi-factor formula.Therefore,the appraisers can select and adjust factors other than the risk factor according to the specific situation.C-CAPM can indirectly determine the level of value of the company.And when examining whether there is a "stock premium puzzle" in the market,the usage rate of this model is relatively high.M-CAPM included the currency factor as a macroscopic factor,and clarified that money can be held as a substitute for assets,which is more in line with the reality.Therefore,its pure theoretical significance is higher than the previous two models.In terms of application,I-CAPM has the highest degree of universality due to the uncertainty of variables,followed by C-CAPM.And though M-CAPM has a high theoretical significance,in the empirical process it is difficult to measure some parameters of it.So the applicability of M-CAPM is lowest in this three expansion model.