Research On TB Company Business Value Evaluation

The main purpose of business value evaluation is to analyze and evaluate the market value of the company in the fair market and provide strong intellectual and technical support for investors and managers to optimal decision-making for rational investment.The research is of great significance at both the theoretical and the practical levels.With the rapid development of China's economy,frequent economic activities such as establishing companies,public listing of companies,transfering equity,acquiring and separating companies,corporate restructuring,and asset restructuring have all occurred in the market.The accurate measurement of business value and scientific methods to guide investment and management is essential.China's business value evaluation application started relatively late,and it is urgent to learn from the advanced theories and successful experiences of western developed countries to establish a theoretical system of business value evaluation that suits our national conditions.This article first briefly describes the background of business value evaluation and its business development and the significance of this research.It also summarizes the developing progress of domestic and foreign related theories and lists some important theoretical achievements.The research objectives,research methods,research contents and technology routes of this article are summarized.Then it detailedly introduced the relevant theories of business value evaluation,including the concepts of ‘business',‘value',‘corporate value',and ‘business value evaluation ',And it also describes the three main elements of business value evaluation(value types,evaluation hypotheses,evaluation principles),and methods of business valuation.By comparing the three most commonly used methods-cost method,market method,and income method,it analyzes their advantages and disadvantages and applicable conditions.In the way of providing a practical example of business value evaluation-XGX which plans to introduce strategic investors evaluates value appraisals of all shareholders' interests of TB company,briefs the basic situation and industry environment of TB company.It analyzes the evaluation process and results using cost method and income method respectively.The cost method evaluation focuses on the process of asset inventory,estimate,and evaluation.The income method evaluation focuses on the process of future cash flow forecasting and discount rate determination.Finally,comparing the different results obtained by the cost method and the income method,the income method more objectively reflects the TB company business value.The conclusion of this paper is that first,we must actively explore other evaluation methods based on the actual situation because the conclusions based on the use of different methods will be more scientific and more reasonable.Second,the cost method is difficult to assess the intangible assets or organizational costs that have a significant impact on the profitability of the company.However,because of the inertia of the selection method of the evaluation agency,the convenience of data collection,and being easy for people to accept,it directly determines the cost-based application in China.Third,the income method is more suitable for business value evaluation in theory and restricts it.The difficulty in application is how to scientifically and objectively predict the cash flow and confirm the discount rate.Fourth,the market method is an internationally recognized method for evaluating the value of business but the difficulties in obtaining data and finding comparative companies in the market constrains.it's application in China.It is recommended to continuously improve the traditional evaluation methods and actively explore new evaluation methods,including the economic value added method,the option pricing method,and the future corporate development construction method.In the process of evaluation,we must fully consider the internal and external environment of the companies,comprehensive competitiveness,and intangible assets and so forth to continuously improve the evalutation of the business level of practitioners and continue to promote the development of the business value evaluation industry.